HC Deb 02 July 1940 vol 362 cc674-5
53. Mr. Glenvil Hall

asked the Chancellor of the Exchequer which item in the Bank of England Statutory Weekly Returns corresponds to the profit shown by the joint stock banks in their half-yearly balance-sheets, and at what date in the year will this item be taken into calculation to determine the assessment of the 100 per cent. Excess Profits Tax which the Bank of England will now have to pay?

The Chancellor of the Exchequer (Sir Kingsley Wood)

The figure for "Rest" in the statutory weekly return of the Bank of England corresponds with that for the balance of profit and loss in the balance-sheets of the joint stock banks, and includes undistributed taxed profits brought forward from previous years. In reply to the second part of the Question, the assessment to 100 per cent. Excess Profits Tax falls to be made by reference to the Bank's accounting period, and will be made at the end of the current accounting year in accordance with the law.

58. Mr. Stokes

asked the Chancellor of the Exchequer whether he proposes that the undisclosed profits of the Bank of England shall be included in the assessment for Excess Profits Tax; and whether the same policy will apply to all other banking institutions?

Sir K. Wood

The liability to Excess Profits Tax is required by law to be computed by reference to the actual profits of the concern assessed, irrespective of any reserve that may be made out of those profits, and my hon. Friend can rest assured that there is no distinction in this respect as between banks and other concerns.

Mr. Stokes

Is not the Chancellor aware that the Bank assesses itself for profit, and, as a regular habit, includes in its expenditure items which other limited companies are not allowed to include?

Sir K. Wood

The hon. Gentleman is incorrect. All profits, including banking profits, are assessed for the purpose of the Excess Profits Tax by the Commissioners of Inland Revenue.

Mr. Craven-Ellis

Can my right hon. Friend define what are banking profits?