§ 59. Sir J. Mellorasked the Chancellor of the Exchequer in how many cases companies have been required to pay, in respect of part of their profits, such amounts of United Kingdom Excess Profits Tax and Income Tax that, after including Dominion Income Tax and allowing for Dominion Income Tax relief, aggregate taxation exceeded 100 per cent. on such part of the profits?
§ Sir K. WoodAs I explained in answer to my hon. Friend's Question on this subject of 19th January, the incidence of the Excess Profits Tax has to be judged by reference to the relation between the total tax payable and the total excess profit. The tax is charged upon the total excess profit and not upon any particular part of it, and I cannot therefore furnish the information asked for by my hon. Friend.
§ Sir J. MellorBe that as it may, does not my right hon. Friend agree that in these cases there is evidently a deterrent to production?
§ Sir K. WoodYes, Sir, but other aspects have to be considered.