§ Sir I. Alberyasked the Chancellor of the Exchequer why, for the purpose of estimating Excess Profits Tax payable by a company other than one carrying on business as a building society, a bank, assurers, or as dealers in or holders of investments, the Commissioners of Inland Revenue are treating Treasury bills as investments and not as cash, with the result that any such bills, although they may represent funds required for the purpose of the business of the company, must be excluded from the computation of capital in the accounts of any accounting period; and will he consider altering this method of treatment?
§ Sir K. WoodThe only capital which falls to be taken into account for purposes of the E.P.T. computation is capital which is employed in the business, and investments in Government securities by an ordinary trading company do not fall within that category. I am afraid that I cannot see my way to recommend an amendment of the law in this matter.