§ Sir HILDRED CARLILEasked the Chancellor of the Exchequer whether surveyors of taxes are directed, when making an assessment for Income Tax, to add to the proved incomes of the medical profession one-third or indeed any part of the value of any book debts which may be standing in their books, and which they may never succeed in recovering; and, if so, on what grounds such additions are allowed to be made?
§ Mr. McKENNANo instructions of the nature suggested have been issued. In the case of medical men, as in other cases, any sum for book debts which has been included for Income Tax purposes in the profits of any year is, of course, excluded from the profits of the year in which the debts are paid. Should the debts prove to be irrecoverable they would be allowed as a deduction from the profits of the year in which they were subsequently written off.