§ 54. Mr. Lewisasked the Chancellor of the Exchequer whether, in drafting any legislation to provide for a National Defence Contribution, he will consider the possibility of making the liability dependent upon increase of income only without taking into account the amount of assets or working capital, so as to save the taxpayers and the Inland Revenue Department from the labour and expense of the special valuations which will otherwise be required, and so as to reduce thereby the possibility of disputed claims and consequent litigation?
§ Mr. ChamberlainI appreciate my hon. Friend's desire for simplicity in the framing of the legislation dealing with the National Defence Contribution. I am afraid, however, that a graduated tax on growth of profits which took no account of capital, must necessarily work inequitably as between different taxpayers, and I am therefore unable to adopt my hon. Friend's suggestion.
§ Mr. LewisDoes my right hon. Friend appreciate the fact that the ascertainment of capital values will mean large sums being expended on lawyers and is bound to result in great delay in the collection of the revenue?