Mr. ERSKINEasked the Chancellor of the Exchequer whether he will consider the desirability of getting further 353W uniformity in the manner in which companies issue their dividend warrants, especially as to whether dividends declared and distributed tax free should be prohibited, with a view to simplify the returns for Income Tax and Super-tax purposes?
§ Mr. CHURCHILLI would refer my hon. Friend to the provisions of Section 33 of the Finance Act, 1924, which was designed to meet the difficulties to which he refers. That Section makes it obligatory on companies, when making a distribution of dividends or interest, to furnish with each dividend warrant, etc., a statement showing the gross amount of the dividend or interest, the rate and amount of tax appropriate to that gross amount, and the net amount actually paid.
§ Mr. DALTONasked the Chancellor of the Exchequer whether his attention has been drawn to the decision of the House of Lords in the case of Whelan v. Henning; and, if so, what steps he proposes to take in order to protect the Revenue?
§ Mr. CHURCHILLMy attention has been called to the decision of the House of Lords in this case and I am giving consideration to the consequent position.