HC Deb 20 March 1945 vol 409 cc634-5
52. Sir Frank Sanderson

asked the Chancellor of the Exchequer whether, with a view to removing the anomaly of companies registered in the United Kingdom being at a disadvantage compared with companies registered in the Colonies, he will consider such United Kingdom companies trading in the Colonies paying the Colonial rate of tax and the difference between that rate and the United Kingdom rate only on dividends paid.

Sir J. Anderson

A United Kingdom company trading in a Colony is entitled under the existing law to relief in respect of colonial tax paid on its profits, and I could not accept a proposal which would result in the profits of such a company enjoying a lower overall rate of tax than that borne by United Kingdom companies trading at home.

Sir F. Sanderson

Does my right hon. Friend not agree that unless this anomaly is removed there will be an increase in the transfer of registrations of companies from the United Kingdom to the Colonies?

Sir J. Anderson

I am not so sure that that will be the result.