HC Deb 28 June 1938 vol 337 cc1707-9
51. Mr. McGovern

asked the Chancellor of the Exchequer the amount of money invested by the late Duke of Devonshire in the company known as the Chatsworth Estates Company; the amount of money left in this company; the total amount of taxation paid or due; and the amount which would have been paid, or due, if the capital had not been in this company?

Sir J. Simon

No, Sir. I am not prepared to disclose information relating to the estate of an individual taxpayer.

Mr. McGovern

Are we to take it that the right hon. Gentleman is not prepared to divulge evidence which has already been divulged in the Press but which he himself stated last week he was not prepared to accept? Is he not prepared to correct it, and can he say why there should not be a statement made on an issue of this kind if there is collusion on the part of a Member of the House of Lords to prevent himself paying tax?

Sir J. Simon

It is a very well understood principle, and one which the House will support, that information relating to the estate of an individual should not be made the subject of Question and Answer in the House of Commons. If that rule were departed from, it is obvious that many evils would result.

Mr. Gallacher

On a point of Order. If a question is put on the Order Paper and is passed after consideration, are we not to take it for granted that it is a legitimate question, and is subject to an answer by the Minister responsible?

Mr. Speaker

The Minister has said that it is not the practice to give this information, and it is not obligatory on the Chancellor to give it.

Mr. Davidson

Is the right hon. Gentleman aware of the many questionnaires which are addressed to unemployed working-class men and women?

Mr. Maxton

Does not another question arise here concerning Members of the Government holding directorships?

52. Mr. McGovern

asked the Chancellor of the Exchequer whether his attention has been drawn to the formation of a company named Shenly Park Estates for the purpose of conveying a private fortune to the heir without giving to the British Exchequer the necessary taxation; and what steps he proposes to take to stop this form of evasion?

Sir J. Simon

I understand that the company to which the hon. Member refers was registered in March of this year. There is nothing to show that the purpose of its formation was such as he indicates. I would remind him that the Finance Bills of recent years contain provisions designed to check loss of taxation through the transference of property to companies.

Mr. McGovern

If this latest estates company formed by Lord Cadman for the same purpose as the estates company of the Duke of Devonshire is to avoid taxation, would it be proper to ask the Chancellor to divulge any proposals he intends to make to prevent rich men doing the thing that poor men are prevented from doing, and are imprisoned every week for doing in a small way?

Sir J. Simon

I really think that the hon. Gentleman is not stating the matter quite fairly. If he will consult the Finance Act, 1930, he will find in it two elaborate Sections addressed to the very purpose of preventing evasion of taxation by the formation of companies; and no doubt the hon. Gentleman is aware that only last night we added another Clause to the Finance Bill to implement those provisions.

Mr. McGovern

Can the right hon. Gentleman assure me that legislation which has been devised by him in the Finance Bill will prevent any repetition of that practice?

Mr. Garro Jones

Do not these things resolve themselves into a game of hide-and-seek so that when one method of evasion is discovered another is found; and will the right hon. Gentleman realise that this problem will never be solved until he passes a general law making invalid business transactions which are designed to escape taxation?

Mr. McGovern

I intend to raise this matter on the Adjournment.