HC Deb 30 April 1940 vol 360 cc535-6
51. Mr. Maclean

asked the Chancellor of the Exchequer whether he will have an investigation into the item negative charges, which are included in the costs of foreign films exhibited in this country, with a view to finding out how much of these charges is legitimate and so find a remunerative subject for taxation which is at present not being paid?

Sir J. Simon

I am not clear what is the precise point which the hon. Member has in mind. But it is part of the ordinary duties of inspectors of taxes to satisfy themselves that returns of profits for taxation purposes are in accordance with the provisions of the relevant tax Acts.

Mr. Maclean

Is it not the case that some of those film companies put in an item charging for the negative and that it completely wipes out any profits that would otherwise be shown? Cannot these charges for negatives be closely inquired into to see that the actual cost is placed over the whole of the companies showing the film?

Sir J. Simon

I am not sure whether the hon. Gentleman has correctly stated the principle. Of course, a company is entitled to charge a proper part of its expenses against the gross rent which it receives, but it must not be more than a proper part.

Mr. Maclean

Are not a number of these companies getting away with it because close inspection is not being made?