43. Mr. De la Béreasked the Chancellor of the Exchequer whether he is aware of the hardship which at present exists by reason of it being deemed, for the purposes of the Excess Profits Tax, that a new business is commenced on the death or retirement of a member of a partnership firm, thus precluding any right to the continuing partners to claim, in the event of a future deficiency, a repayment of Excess Profits Tax paid in respect of a partner prior to such event; and whether he will take steps to remove this anomaly?
§ Sir K. WoodI am advised by the Board of Inland Revenue that, in the case of a change in the constitution of a partnership, it is their practice to allow to continuing partners appropriate relief in respect of deficiencies arising before or after the change, and instructions to this effect have now been issued.
44. Mr. Whiteasked the Chancellor of the Exchequer whether it is the policy of His Majesty's Government to encourage firms who, while selling their products or services at normal prices, are incurring liability for Excess Profits Tax to reduce their prices to an extent which will extinguish the liability to tax?
§ Sir K. WoodNo, Sir. The policy of His Majesty's Government in dealing with essential goods and services is to proceed by the method of price control. In the luxury area there is no case for limiting prices and thereby increasing the purchasing power of consumers at the expense of the Exchequer's Revenue.