HC Deb 11 November 1937 vol 328 cc1867-9W
Sir A. Wilson

asked the President of the Board of Trade how many foreign ships have been transferred to the British flag at foreign ports and from what previous foreign registry, with the names of those ports, since 1st July, 1936; and how many were transferred during the previous 12 months?

Mr. Stanley

I assume that my hon. and gallant Friend has in mind the issue of provisional certificates of British registry. Details of the provisional certificates issued since the 1st July, 1936, showing the foreign ports at which they were issued are given in the following table. Information as to the previous foreign registry of these ships is not available.

The number of provisional certificates issued during the 12 months ended 30th June, 1936, was 69. The maximum period of validity of a provisional certificate is six months.

PROVISIONAL CERTIFICATES issued since 1st July, 1936.
Port at which issued. Number issued.
Algiers … … 2
Amsterdam … … 8
Antwerp … … 5
Baltimore … … 2
Bangkok … … 5
Bayonne … … 2
Beirut … … 1
Bergen … … 1
Bordeaux … … 1
Boston … … 1
Bremen … … 15
Brest … … 1
Calais … … 1
Cannes … … 20
Constanza … … 1
Copenhagen … … 2
Dieppe … … 1
Dunkirk … … 1
Galveston … … 1
Genoa … … 2
Havre … … 3
Istanbul … … 4
La Pallice … … 4
Lisbon … … 1
Lobito … … 1
Magallanes … … 1
Marseilles … … 3
Monaco … … 2
Naples … … 1
New Orleans … … 4
New York … … 11
Nice … … 2
Norfolk … … 4
Oslo … … 1
Palma … … 1
Philadelphia … … 2
Piraeus … … 6
Portland … … 1
Rotterdam … … 18
Rouen … … 5
Sandefjord … … 1
San Francisco … … 1
Seattle … … 3
Split … … 1
Tonsberg … … 2
Trieste … … 1
Vienna … … 1
Total … … 154

Sir A. Wilson

asked the Chancellor of the Exchequer (1) what arrangements exist to ensure that the profits of ships transferred to British registry at British consulates abroad are duly assessed for British Income Tax; and what precautions are taken to prevent evasion of Income Tax by companies which charter ships under the British flag, at a nominal figure to foreign Governments which cannot be called upon to pay Income Tax;

(2) what arrangements exist to ensure that the profits of ships transferred to British registry in British Colonial possessions are duly assessed for Income Tax; and what stipulations are made as regards re-transfer to foreign registry so soon as the use of the British flag ceases to be commercially and politically advantageous?

Sir J. Simon

Liability to British Income Tax in respect of profits arising from the business of shipping depends, not upon registration, but on the question whether the business is carried on in the United Kingdom. The transfer of a ship from foreign to British registry would not of itself bring the profits within the liability to tax. My hon. and gallant Friend may rest assured that all necessary steps are taken to secure that the tax imposed by law is duly charged. As regards re-transfer to foreign registry I would refer my hon. and gallant Friend to the answer which he received to a similar question on 9th November from the President of the Board of Trade.