HC Deb 23 April 1940 vol 360 cc27-8
51. Mr. John Wilmot

asked the Chancellor of the Exchequer, whether he is aware that, during the period September, 1939, to March, 1940, over £10,000,000 of company profits was distributed by way of sterling bonus share issues; and whether he will take steps to prevent the avoidance of Surtax by wealthy holders by reason of the fact that the proceeds of the sale of such scrip is not returnable as income for Surtax purposes?

Captain Crookshank

Precise statistics are not available, but I can assure the hon. Member that my right hon. Friend has the question of bonus shares in mind and it is not being overlooked.

Mr. Wilmot

While thanking the Financial Secretary for the answer, is he not aware that statistics can be obtained from the Stock Exchange authorities, and that an examination of the figures will show that the issue of bonus shares has grown to such proportions that it amounts to over one-third of the total issue made since the war? Will he take energetic steps to stop Surtax evasion on this widespread scale?

Mr. Dalton

If the Financial Secretary is incapable of answering the Question, will he consider whether the issue of bonus shares to rich shareholders is not a disgraceful exhibition of war-time profiteering?