§ 45. Mr. Douglas Houghtonasked the Chancellor of the Exchequer whether, in his search for effective checks upon inflationary expenditure, he will take steps to disallow all expenditure on entertainment as a charge against taxable profits; 2224 to disallow depreciation and maintenance charges on private motor cars as a deduction from taxable profits except those bearing the name and business of the owner in a prominent place; and to remove the abuses of claims under Section 34 of the Income Tax Act, 1918, especially tax relief on farming losses.
§ The Chancellor of the Exchequer (Mr. R. A. Butler)As at present advised, I cannot agree that a case is made out for the sweeping proposals in the Question. In any event, I could not anticipate my Budget Statement.
§ Mr. HoughtonIs that the best reply the right hon. Gentleman can give to three friendly suggestions for meeting his present difficulty? Is he aware that my Question touches upon three heads upon which there is a great deal of commercial dissipation at the present moment?
§ Mr. ButlerI am quite aware of the importance of the hon. Member's proposals. In fact I have some 20 pages of notes here about them, but the fact is I cannot anticipate my Budget Statement, and in some respects I regard these proposals as rather sweeping.
§ Mr. Julian SnowIn connection with the final part of the Question, would the right hon. Gentleman consider consulting with his right hon. Friend the Minister of Agriculture to secure a report from the appropriate County Executive Committee when such claims for Income Tax deductions are made?
§ Mr. ButlerI should want notice of that.
§ Mr. Patrick MaitlandWould my right hon. Friend investigate cases where inspectors of farmers' books have not been found to be suitably equipped for the task, and would he investigate a particular case where one of them was a bookie's clerk and another was an accountant who had failed to pass his exams?
§ Mr. ButlerIf my hon. Friend makes statements of that sort I should be very grateful if he would send me particulars so that I may examine them.