§ Major ASTORasked the Chancellor of the Exchequer whether British owners of British vessels registered at Colombo and Hong Kong are and have been liable to the Excess Profits Tax on those vessels?
§ Mr. McKENNAIf the business is owned or carried on by a person ordinarily resident in the United Kingdom liability to-Excess Profits Duty arises.
§ Major CHAPPLEasked the Chancellor of the Exchequer whether he intends to make any provision to secure from highly-watered companies as large a relative portion of their real profits under the Excess Profits Duty as is contributed by those companies not so watered?
§ Mr. McKENNAThe question of watered capital arises only where a percentage standard is placed, and in such cases if capital has been created upon a reconstruction or other operation for which there has been nobond-fide subscription, or which represents no actual outlay, the Act provides that the capital of the business for purposes of the standard shall be measured by reference only to the cost price of the assets employed in the business.