§ Mr. SUGDENasked the Chancellor of the Exchequer whether, seeing that the continuance of the Excess Profits Duty at 60 per cent, is not in accordance with his statement when introducing the same, he is aware that great losses have accrued to traders who entered into contracts on such basis of reduction; and what remedy does he propose as equity in the matter?
Mr. CHAMBERLAINI am sorry to say that I do not understand the first part of the question. I cannot agree with1724W the second, and I have nothing to add to my previous statements in respect of the third.
§ Mr. SUGDENasked the Chancellor of the Exchequer whether the High Court has decided in the case of Gillette Safety Razor v. Inland Revenue Commissioners that the Regulation made by the Commissioners of Inland Revenue whereby Section 31 of the Finance (No. 2) Act, 1915, was made applicable to Excess Profits Duty is invalid; will imported German goods be liable to Excess Profits Duty, arising on the judgment of the Courts; and will he take steps to make such profits liable to Excess Profits Duty or otherwise to contribute towards the national revenue?
Mr. CHAMBERLAINIn the case to which my hon. Friend refers it was held that the American company was not carrying on business in this country, and was therefore not liable to Excess Profits Duty. In the course of his decision the learned Judge indicated that the provisions of the Section referred to could not be applied to the Excess Profits Duty, so as to extend the charge to cases of this character. Where, however, a foreign concern carries on business in this country through a branch or agent, the profits arising in this country are within the charge to Excess Profits Duty.
§ Mr. SUGDENasked the Chancellor of the Exchequer whether the officials in the Income Tax and Estate Duty Offices have been requested to proffer suggestions as to alternative taxes which might be levied if Excess Profits Duty was abolished; whether the suggestions made in answer to such request have been accepted by him or refused; and will he publish the same if he intends to accept them, so that the commercial community may consider their merits?
Mr. CHAMBERLAINIn the ordinary course of their duty the Board of Inland Revenue are considering possible alterations in taxation, and I am, as always, in close communication with them. I understand that they have invited suggestions from members of their staff, but I am certainly not in a position to put forward any proposals at the present time, even if I thought it desirable to depart from the ordinary course of reserving taxing proposals for the Budget statement.