§ 40. Mr. Callaghanasked the Chancellor of the Exchequer what study he has made of the Report of the Comptroller and Auditor-General that, arising from the introduction of investment allowances for new plant etc., over £12 million in tax has been repaid to certain companies despite the fact that the tax has not been paid in the first place; what is his estimate of the total sum so paid out; and if he will take steps to bring this practice to an end and recover the tax from the companies concerned.
§ Mr. MaudlingI have made a careful study of this Report. Since the repayments in question were in respect of losses which, if not relieved in this way, would have been available for carry forward and set-off against subsequent profits this tax will, in effect, be recovered if and when subsequent profits are made.