§ 76. Mr. Robert Morganasked the Chancellor of the Exchequer whether he is aware of the difference in Income Tax, and other taxation, between sugar and similar firms established in this country and firms carrying out the same activities in the West Indies; and whether he will take steps to avoid such disparity in order to restrict the drift of capital from this country to the West Indies, whereby the Budget in this country would only be able to include a tax on the revenue from dividends instead of a tax on profits?
§ The Chancellor of the Exchequer (Sir John Simon)I am aware of the difference between the rates of direct taxation in the West Indian Colonies and in the United Kingdom, but I have no evidence that the disparity is causing a drift of capital from this country to the West Indies. As regards taxation in the West Indian Colonies, I would refer my hon. Friend to the answer given by the Secretary of State for the Colonies to a Question by the hon. Member for the Clayton Division of Manchester (Mr. Jagger) on 13th March.