HC Deb 11 December 1945 vol 417 c219
56. Mr. Janner

asked the Chancellor of the Exchequer whether masters of Ministry of War Transport ships pay Income Tax on profits made by them on the sale of tobacco and bonded stores to their crews; and whether they submit detailed accounts of all such transactions on the completion of each voyage.

Mr. Glenvil Hall

Such profits, if made by a ship's master on his own account, are liable to Income Tax and should be included in his Income Tax return. The reply to the second part of the Question is that practice varies.

Mr. Janner

Will the hon. Gentleman be good enough to investigate cases where exorbitant charges have been made to see if proper returns are made in respect of taxes?

Mr. Hall

If the hon. Member will let me have particulars of the kind of thing that he has in mind, I will certainly look into it.

Mr. Janner

Would the hon. Gentleman be good enough to consult with the Minister of War Transport to whom I have given particulars of these cases?

Mr. E. P. Smith

Can the hon. Member say in what way this practice is carried on?

Mr. Hall

In some cases, the company owning the ship runs a shop aboard the ship, and the master sells tobacco and cigarettes as agent for the shipping company. In the case of some other companies, the master does this on his own, and accounts in his own way, if he makes a profit, to the Inspector of Taxes. I am informed that a very close watch is being kept.