§ Mr. Osborneasked the Chancellor of the Exchequer how much of the £700 million other receipts received by companies in 1953 as indicated in table 20 of the Economic Survey, 1954, represents capital transfers; why tax payments are estimated only at £950 million on a total income of £3,130 million; and what items are included in the later figure that are not subject to taxation.
§ Mr. MaudlingCapital transfers account for about £25 million out of the £700 million "other receipts" in the table. The tax payments shown do not include Income Tax paid on interest and dividends, since this is regarded as falling on the shareholders, even though in practice it is normally deducted by companies at source. To arrive, therefore, at an appropriate figure of company income in 1953 for comparison with the figure of tax payments it is necessary to deduct interest and dividend payments of £951 million from the total of £3,130 million.
Statutory depreciation allowances of £449 million should also be deducted, together with the £25 million of capital receipts. The resulting figure of £1,705 million represents the undistributed income of companies in 1953, after provision for depreciation; tax payments on this income are put at £950 million or 56 per cent.