Company Chairmen (Statements)

HC Deb 22 June 1965 vol 714 cc1458-9

24. Mr. William Hamilton

asked the Chancellor of the Exchequer whether, under his regulations and the practice of the Revenue, the cost of newspaper advertisements of the texts of speeches of chairmen of public companies can be set off against the companies' Income and Profits Tax, even where a large proportion of the speech may be concerned to make political propaganda.

Mr. MacDermot

Reprinting statements by company chairmen at annual general meetings is an accepted form of advertising, and the cost is generally admissible as a business expense for tax purposes. Reflections on Government policies are a not unusual feature of such statements. I do not think the public in general find it difficult to see them in their proper perspective.

Mr. Hamilton

Does my hon. and learned Friend recognise that, while that may well be so, it is no defence and no argument for allowing it for Income Tax and Profits Tax purposes? Did he read carefully the example which I sent to the Department, and does he recognise that there is an increasing tendency for chairmen of companies to engage in political propaganda and charge it against their tax assessments? Will he take steps at least to judge each case on its merits, and if there is political propaganda, ensure that it is not chargeable against tax?

Mr. MacDermot

Yes, Sir; I read the statement concerned. I also noticed that, in spite of the somewhat gloomy statements by the chairman of the company, he found time to tell his shareholders that in the first quarter of this year the results of the company's efforts had been, I think, 17.5 per cent. better than during the equivalent period last year.

Mr. Heath

Is the Financial Secretary correct in standing up to his hon. Friend and defending the right of his former supporter, the chairman of Booker Bros., to attack the Government when he can no longer support them?

Mr. MacDermot

I am grateful to the right hon. Gentleman for again giving me an opportunity to bring to the attention of the public what the Press chose not to do, namely, the additional statement made by the chairman that the concessions which had been added to the Order Paper by my right hon. Friend had met his points.

Mr. Shinwell

Surely it would not tax the ingenuity of the Inland Revenue to eliminate that part of a company report critical of the Government, making it not deductible?