§ Sir F. NELSON
asked the Chancellor of the Exchequer if his attention has been drawn to the assessment to Income Tax of a rubber plantation company incorporated in April, 1925, which commenced operations in July of that year; if he is aware that the profits earned to 30th June, 1927, as adjusted to an Income Tax (Schedule D, Case 1) basis, amounted 1732W to £209,379, and the profits for the nine months now under review similarly adjusted were about £18,000, making a total of £227,379 to 31st March last, and that the company, owing to recent changes in Income Tax Law, has now been assessed by the Inland Revenue for this period on the sum of £306,920, and for the year to 5th April next on a further £93,800, the total assessments thus amounting to £400,720, or a sum of £153,000 in excess of the profits accrued and estimated for the same period and what action, if any, he proposes to take in this and similar cases, in view of the effect of such provisions upon the assessees?
I am aware of the case to which my hon. Friend refers. I understand that the company are now in communication with the Inland Revenue authorities, and that it is anticipated that on the basis of further accounts recently received the liability will be much less than is suggested by my hon. Friend.