§ Mr. Tom Boardmanasked the Chancellor of the Exchequer what rate of corporation tax requires to be levied to produce the same revenue as in 1968–69 and 1969–70 on the basis that dividends by companies were treated as franked for income tax and that the requirement to account for tax under Schedule XII was abolished.
§ Mr. TaverneOn the basis that companies would still have to account for tax on interest paid, the figures are 64 per cent. for corporation tax payable in 1968–69 and 62 per cent. for 1969–70. These estimates are based on the assumptions that there would be no consequent change in the existing levels of the profits, distributions or capital structure of companies.