§ 33. Mr. Frank Allaunasked the Chancellor of the Exchequer in view of the large sums now being paid by steel companies out of what would otherwise be taxable profits, for a campaign against steel renationalisation, if he will subject such expenditure to tax.
§ Mr. SimonI would refer the hon. Member to my right hon. Friend's reply to the Question asked by the hon. Member for West Ham, North (Mr. Lewis) on Tuesday.
§ Mr. AllaunIs it not a fact that if the steel owners were not spending this money on propaganda it would be taxable and available to increase Government income, as the Inland Revenue originally held? Does the hon. and learned Gentleman hold that the decision over Messrs. Tate and Lyle applies to this very different situation and campaign?
§ Mr. SimonNo claim has yet been made to deduct any such sums from the profits returnable for tax. It is not for me to say how far the case of Morgan versus Tate and Lyle applies to these circumstances, but it does not necessarily apply.