HC Deb 03 November 1970 vol 805 cc841-2
25. Mr. Dixon

asked the Chancellor of the Exchequer if he will end fiscal discrimination against companies paying dividends to their shareholders.

Mr. Maurice Macmillan

We have made clear our intention to reform corporation tax so as to reduce the bias against distributions.

Mr. Dixon

Does my hon. Friend agree that if this present discrimination were abolished it would remove an unfair advantage from unprofitable companies which reinvest their shareholders' money at a poor rate of return, and would allow their shareholders to put their money into something better?

Mr. Macmillan

One of the main purposes of this policy would be to secure the most effective as well as a high rate of investment.