§ Mr. Hannahasked the Chancellor of the Exchequer whether he realises the way in which the present administration of Excess Profit Taxes may prevent any expansion of a limited company registered after 1939, so restricting production at present and export opportunities for the future; and will he consider modifications where this can actually be proved?
§ Sir K. WoodI would point out to my hon. Friend that a company of the kind to which he refers has normally a standard representing a percentage of 8 or 10 per cent. on the capital whether borrowed or owned that is employed in the business, and any growth of capital in respect of expansion of business activity will be entitled to a similar percentage as an addition to the capital. I am not aware of any matter of administration which would prejudice expansion, but I shall be happy to inquire into any case that my hon. Friend has in mind if he will let me have particulars.
§ Mr. Goldieasked the Chancellor of the Exchequer whether he is satisfied that individuals and firms upon whom fines have been imposed in respect of the offence commonly known as black-marketing, are not deducting such fines as expenses of carrying on their business in determining their liability to Excess Profits Tax; and whether he will take the necessary step to prevent such deductions being made?
§ Sir K. WoodFines imposed upon a trader in respect of "black market" 249W offences are not allowable as expenses in computing the trader's profits for taxation purposes. My hon. Friend can rest assured that if any trader seeks to claim a deduction for such items his claim will be resisted.