§ Sir J. HARMOOD-BANNERasked the Chancellor of the Exchequer whether, in assessing Excess Mineral Rights Duty on mineral royalties no deduction is allowed for Mineral Rights Duty actually received by the Treasury in respect of the same coal; and, if so, whether, seeing that this has the effect of charging the taxpayer with Excess Profits tax on money already paid into the Treasury, he proposes to take any action in the matter?
§ Mr. McKENNAThe hon. Member rightly supposes that no deduction is allowed. The statutory measure of the chargeable excess must be considered in the light of the rate of duty which has been imposed and the conditions in which increased rates of royalty now accrue, and I cannot agree that in that aspect the measure is unduly onerous to the taxpayer.
§ Sir J. HARMOOD-BANNERasked the Chancellor of the Exchequer whether he will explain why in assessing Excess Mineral Rights Duty on mineral royalties no deduction is allowed for management expenses, seeing that this has the effect of charging the taxpayer with Excess Profits Tax on the gross profits instead of on the net profits, as in the case of Excess Profits Duty?
§ Mr. McKENNAExcess Mineral Rights Duty is an addition to Mineral Rights Duty, and there are no grounds for allowing a deduction in assessing the former duty, which is not allowable in assessing the latter. There are material differences between the general scheme of the Excess Mineral Rights Duty as sanctioned by this 1225W House and that of the Excess Profits Duty, and any comparison of the severity of incidence of the two taxes which does not take into account the whole of these differences would necessarily be misleading.
§ Commander BELLAIRSasked the Chancellor of the Exchequer whether a finance company which derives its income from dividends from rubber companies which have already paid Excess Profits Tax can itself be charged Excess Profits Tax if its profits exceed the 6 per cent. allowed on the three years' average, seeing that this would involve charging the Excess Profits Tax twice over?
§ Mr. McKENNAWhere finance companies are assessable to Excess Profits Duty and any part of the income included in the profits has been derived from sources in respect of which Excess Profits Duty has already been paid, the law authorises a deduction such as to make proper allowance for that payment, in order that a double assessment of the same subject matter may be avoided.
§ Mr. THOMASasked the Chancellor of the Exchequer whether he has received representations from the Plymouth Cooperative Society against an unfair assessment to Excess Profits Tax; and, if so, whether he has decided to take any action in the matter?
§ Mr. McKENNAI have not received any communication from the society, but I understand that the assessment which has been made is now under appeal.