§ 49. Mr. MANDER
asked the Chancellor of the Exchequer whether it is the practice of the Treasury in assessing industrial concerns for Income Tax, in cases where it appears that sums entered as expenses are likely to have been used for purposes of bribery or secret commissions, either to ask for the name of the recipients or to charge Income Tax on the amounts to the donors?
The question whether a particular payment is admissible as a deduction in computing for Income Tax purposes the profits of a trade falls to be determined, not by reference to the character of the payment, but solely by reference to the consideration whether it represents expenditure wholly and exclusively incurred for the purposes of the trade. The hon. Member may rest assured that all possible steps are taken to secure the due assessment of any liabilities arising under the Income Tax law in respect of the payments which he has in mind.
§ Mr. MANDER
Would it be possible for the Chancellor to give any indication of the amount of revenue obtained from this particular source, if I put down a question?
§ Mr. THURTLE
May I ask whether contributions to political party funds are recognised as legitimate expenses in this category?