§ 17. Mr. Dempseyasked the Chancellor of the Exchequer what was the total value of entertainments deducted for Income Tax purposes in the most recent year for which figures are available.
§ Mr. DempseyCan the Minister give me some idea of the definition of "entertainments" under the Act? Can he say what proportion of the money is used for the purpose of subsidising strippers, and night club workers, for instance? Is he aware that these premises provide not only entertainment but ladies of easy virtue? Should not taxpayers be protected against this sort of abuse? Can he state here and now whether he is satisfied that expenses for entertainment purposes are not exaggerated?
§ Mr. GreenI cannot answer from an expert point of view most of the questions that the hon. Gentleman raised. Perhaps he will accept this as an answer: to be allowable for tax purposes expenses must be incurred for genuine business reasons. These are subject, in the first case, to the normal processes of audit, and in the second, to the scrutiny of the inspector of taxes.