§ Major Lyonsasked the Chancellor of the Exchequer under what authority officers of the Customs and Excise Department are forcing manufacturers to add a notional or fictitious amount to their wholesale prices before the price is determined for the calculation of Purchase Tax?
§ Sir K. WoodThe wholesale value on which Purchase Tax is payable is defined in Section 21 of the Finance (No. 2) Act, 1940, as the price which in the opinion of the Commissioners the goods would fetch on a sale in the open market by a person selling by wholesale to a retail trader. Where a sale takes place under other conditions the actual price paid may not represent the statutory value and an adjustment becomes necessary.