§ Mr. HOODasked the Chancellor of the Exchequer the amount of dividends upon preference shares paid by Colonial companies through agents in the United Kingdom during the three years ending 5th April, 1917, 1918, and 1919, respectively; the amount of relief in respect of Colonial Income Tax which has been given to such preference shareholders, although no deduction of Colonial Income Tax has been made in respect of such dividends from the preference shareholders; whether it is the practice for the Treasury to allow a refund of Colonial Income Tax to preference shareholders; and whether there is any difference in practice in the course adopted in England and in Scotland?
Mr. CHAMBERLAINThe information asked for in the first two parts of the question is not available. Where a Colonial company, whose profits are charged to Income Tax in a Colony, pays dividends, whether to ordinary or to preferential shareholders, through a paying agent in this country, relief from2398W Colonial Income Tax may be claimed. This is in accordance with the decision of the English High Court in the case of Rover v. The South African Breweries, Limited [1918], 2 Ch. 233. In a subsequent case, the Scottish Court of Session has held that the preference shareholder is not entitled to share in the relief from Colonial Income Tax, but it is understood that this case may be taken on appeal to the House of Lords.