§ Mr. HOLMESasked the Chancellor of the Exchequer what instructions he has given to the Board of Inland Revenue for dealing administratively with hard cases which are primâ facie governed by the Gittus case in respect of claims for the repayment of Excess Profits Duty, in accordance with the promise made by the Financial Secretary to the Treasury on 20th June, 1921?
Mr. YOUNGThe Commissioners of Inland Revenue have been instructed to deal administratively with cases of the character to which the hon. Member refers. The cases coming within their purview are numerous and present widely divergent features, and[...]o detailed instructions could be framed to cover the various circumstances arising. Broadly speaking, however, where there has been a change of ownership of a business, repayment of Excess Profits Duty is made if there is, and to the extent to which there is, substantial identity of interest between the old and the new owner.
§ Mr. HOLMESasked the Chancellor of the Exchequer whether any regulations have now been issued by the Board of 1529W Inland Revenue concerning the provisions of Section 40, Sub-section (3), of the Finance (No. 2) Act, 1915; and, in particular, whether any regulation issued related to the writing-off of goodwill?
Mr. YOUNGA Regulation has been made under the Section referred to by the hon. Member relating to depreciation of capital expended upon patent rights, and I am causing a copy of that Regulation to be sent to him. A Regulation will shortly be made, in accordance with promises given by my predecessors, relating to loss of goodwill in certain conditions in the case of controlled establishments.
§ Mr. HOLMESasked the Chancellor of the Exchequer whether any instructions have been issued to inspectors of taxes to the effect that they should delay, as far as possible, the settlement of claims for the repayment of Excess Profits Duty until the end of the current financial year?
§ Mr. HOLMESasked the Chancellor of the Exchequer with reference to the interest at the net rate of 5 per cent. per annum without allowance for Income Tax to be charged on any arrears of Excess Profits Duty, whether the interest so paid will be allowed as a deduction from profits in calculating the amount of Corporation Profits Tax payable by a company, and as a deduction from total income in calculating the amount of Super-tax payable by an individual; and whether, if the answer is in the affirmative, the amount to be deducted will be the interest at the net rate of 5 per cent., plus tax?
Mr. YOUNGMy right hon. Friend the Chancellor of the Exchequer proposes that for purposes of Corporation Profits Tax and Super-tax a deduction shall be allowed in respect of the interest in question of the gross amount which, after deduction of Income Tax at the standard rate, would give a net amount equal to the amount of interest actually paid.