§ 61. Mr. Remnantasked the Chancellor of the Exchequer why interest on tax reserve certificates, tendered in payment of Profits Tax, is not credited for any period beyond six months after the conclusion of the accounting period concerned; and whether he will make the conditions similar to those that exist when such certificates are tendered in payment of Income Tax.
§ Mr. GaitskellThe reason is that there is no single due date for payment of Profits Tax which corresponds to the Income Tax due date of 1st January in the year of assessment. The period of six months, however, is a reasonable measure of the time which must normally elapse before the Profits Tax is assessed and becomes due and payable, and I do not consider that any change is called for.
§ Mr. RemnantDoes the right hon. Gentleman consider that is really a fair reason why the tax reserves certificates should not have interest credited, subject to the two-year limit?
§ Mr. GaitskellYes, Sir, I think it is perfectly fair. If the hon. Member will study my answer, he will see that the difference arises because of the date on which tax is due in the case of the two taxes.