§ Mr. Stratton Millsasked the Chancellor of the Exchequer whether he is aware that the Inland Revenue have been disallowing the remuneration of whole-time directors in close companies as an expense before Corporation Tax where the director dies within six months of the commencement of the financial year, on the grounds that the director was not a full-time employee for more than 50 per cent. of the company's trading year; and what action he will take.
§ Mr. DiamondYes; the statutory provisions may favour the taxpayer in certain circumstances and the Inland Revenue in others. Representations on56W the point are being taken into account, along with the other representations my right hon. Friend is receiving, in the Budget review.