HC Deb 19 January 1943 vol 386 cc85-6W
Sir J. Mellor

asked the Chancellor of the Exchequer whether his attention has been called to cases in which companies have been required to pay, in respect of part of their profits, such amounts of United Kingdom Excess Profits Tax and Income Tax that, after including Dominion Income Tax and allowing for Dominion Income Tax relief, aggregate taxation exceeded 100 per cent. on such part of the profits; and what steps he has taken to remove this discouragement of production?

Sir K. Wood

The incidence of the tax must, I think, be judged by reference to the relation between the total tax payable and the total excess profit and I am not aware of any case in which the aggregate of the Dominion and British Income Tax exceeds 100 per cent. of a company's excess profits after double taxation relief has been given. It would be misleading to look only at the incidence of the tax on one part of the profits and not take into account the measure of relief given on other parts.