§ Sir A. BIRD
asked the Chancellor of the Exchequer whether he is aware that inspectors of taxes are refusing to accept accounts in which stock-in-trade is valued at the current market price ruling at the date of the balance-sheet, and claiming that for the purpose of the final Excess Profits Duty accounting period, and for the purpose of the 1921–22 Income Tax assessment and claims for repayment under the 1890 Act, all stock-in-trade must be valued at cost, subject in the case of Excess Profits Duty only to any relief that may be subsequently claimable in respect of losses sustained in realisation of stocks during the next two years in the terms of the White Paper already issued, or to any further relief that Parliament may in future decide upon; whether the above claims are made with the sanction or under the authority of 610W the Board of Inland Revenue; and, if so, whether he will instruct the Board of Inland Revenue that no alteration is to be made in the method of valuing stocks for taxation purposes at either cost or current market price which has been universally adopted ever since the imposition of the Income Tax, without the previous express authority of Parliament?
The general rule for the valuation of trading stocks for taxation purposes is that they should be brought into account at cost or market value, whichever is the lower. If my hon. Friend will furnish me with particulars of any case which he may have in mind I will cause inquiry to be made.