§ Mr. Parker
asked the Chancellor of the Exchequer whether, when making statutory prohibition of tax-free directors' fees, he will amend the Companies Act so as to prevent evasions caused by directors being appointed as managing directors; and will he revise the tax assessment reliefs claims based on a portion of a salary being considered an allowance for trade expenses, and scrutinise more closely the provision of a motor car, driver, and upkeep being claimed as a trade expense where a material portion of the mileage is expended for private purposes?
§ Sir K. Wood
My hon. Friend is under a misapprehension in thinking that tax-free directors' fees are to be prohibited but his suggestion about the Companies Act has been noted by the Board of Trade. With regard to the second point, the questions to what extent an employee's receipts from his employer constitute assessable remuneration, and what expenses may be deducted in computing the profits of a business or the tax liability of an employer, depend on the facts of the particular case. The examination to which all tax returns and claims are subjected by the Inland Revenue authorities covers the matters to which my hon. Friend refers, but if he has any particular cases in mind and will send me details I will cause inquiries to be made.