§ Mr. Houghtonasked the Chancellor of the Exchequer whether he is aware of the growing practice in private companies of voting bonuses to directors in the form of credit to loan or current accounts, and showing the directors as creditors of the company, thus deferring the deduction of Income Tax from these bonuses indefinitely; and what action he is taking to check this practice.
§ Mr. R. A. ButlerWhere a private company has voted a bonus to a director, the crediting of that amount to a loan or current account over which he has control is normally treated as amounting to payment, and the appropriate tax must then he handed over to the Revenue.