§ 101. Mr. Arbuthnot
asked the Chancellor of the Exchequer the estimated cost of implementing the recommendations of 97W the Report of the Royal Commission on the Taxation of Profits and Income to exempt from taxation the undistributed profits of overseas trade corporations; and what part of this applies to overseas trade corporations within the Commonwealth.
§ Mr. H. Brooke
The cost would depend on the definition of overseas trade corporations, and on the extent to which companies operating both in the United Kingdom and overseas modified their structure so as to bring their overseas business within the relief. No precise figure can, therefore, be given, but the cost might be as high as £75 million. It is not possible to estimate how much of this would apply to companies operating within the Commonwealth.