§ 63. Mr. Storeyasked the Chancellor of the Exchequer whether he is aware that London Express Newspapers, Limited, having increased their net profits after taxation but before depreciation for the year ended 30th June, 1940, from £247,579 to £359,707, have decreased their ordinary dividends from £81,600 to £61,200 and have capitalised £135,409 of the year's profits towards the cost of a 200 per cent. capital bonus; whether he proposes to take steps to secure to the Exchequer the equivalent of Surtax upon the profits so distributed; and, as the decision to issue such capital bonus was taken after the Government's announcement that the issue of bonus shares during the war would not be allowed except where exceptional grounds exist, what were the grounds existing in this instance?
§ Sir K. WoodThe issue of bonus shares by the company was decided upon with Treasury consent some weeks before the announcement of the prohibition of such issues made in the Budget Speech on 23rd April last. I do not propose to take action on the lines suggested by my hon. Friend.