§ Mr. BRACKENasked the Chancellor of the Exchequer if he will give the figures indicating the proportion of Income Tax payable by public and private companies as opposed to individuals, and as to the proportions in the first group applicable to profits distributable as dividends and profits reinvested or applied to reserve and if he will consider differentiating between the tax payable by companies on profits distributed as dividends and profits reinvested or otherwise put to useful development schemes which create employment?
Mr. CHAMBERLAIN:It is not possible to divide up the receipt of the Income Tax in the manner desired by my hon. Friend. I might however refer him to an answer given on 9th February last year in reply to a question by the hon. Member for Stockton-on-Tees (Mr. Macmillan) in which it was estimated that in a normal year the cost of relieving the undistributed income of companies from the standard rate of 5s. would be in the neighbourhood of £60,000,000. I am afraid that I cannot undertake in question and answer to discuss the merits of the issue raised by my hon. Friend as to the incidence of the Income Tax on the reserves of companies. It has been debated in this House on numerous occasions, and I have no doubt that it will be again. All that I can say at the moment is that, apart altogether from financial considerations, the difficulties—both of principle and of administration—inherent in a differential rate for reserves have hitherto been found insuperable.