§ 65. Mr. Wingfield Digbyasked the Chancellor of the Exchequer what was the total of dividends distributed by the shipping industry in the last financial year on which Income Tax deducted at source was not paid to the Inland Revenue.
§ Mr. DiamondUnder the existing law companies are charged Profits Tax and Income Tax on their trading profits and are not required to account to the Revenue for the income deducted from dividends. The estimated amount of Income Tax deducted from dividends by shipping companies in each of the last five years has varied between £20 million and £60 million, whereas the Income Tax assessed on their net trading profits has not exceeded £12 million for any one of these years.
§ Mr. Wingfield Digbyasked the Chancellor of the Exchequer on what basis he estimates that £150 million worth of investment allowances are at present carried forward by the shipping industry; and what is the figure for wear and tear allowances.
§ Mr. DiamondThe figure of £150 million relates to the total unused capital allowances of shipping companies. It comprises the excess of the sum of unused capital allowances brought forward from previous years and the capital allowances124W due for the year over the amount set against the profits of the year. It is not possible therefore to say how much of it represents investment allowances. However had there never been any investment allowances for ships the amount of unused capital allowances would be very much smaller, and in this sense most of the above figure represents investment allowance.