§ The Solicitor-GeneralI beg to move. in page 46, line 5, at the end, to insert:
Provided that where a body corporate's trade or business commenced after the first day of January, nineteen hundred and forty-seven, then, for the purpose of ascertaining its undistributed profits or over-distribution of profits for any period beginning at the relevant date (as defined in the provisions of this Act applicable to the body corporate) and ending at any time after the end of the year nineteen hundred and fifty-one, its losses for the period beginning at the said relevant date and ending at the end of the year nineteen hundred and fifty-one shall be Left out of account to the 820 extent, if any, that they exceed its profits for the last-mentioned period.This Amendment proposes that in the case of a new business—that is to say, one set up after 1st January, 1947—any aggregate loss incurred during the development period up to the end of 1951, is to be left out of account in computing the adjustment to its standard in respect of a percentage of its undistributed profits.The point has been made that it is unfair to diminish the standard of a new company where its resources at the beginning of the period of charge are less than the capital it started with a few years earlier solely because it has incurred losses in the development period.
§ Amendment agreed to.
§ Clause, as amended, ordered to stand part of the Bill.