§ Mr. Skeetasked the Chancellor of the Exchequer to what extent the profits of United Kingdom mining companies operating exclusively overseas are liable to double taxation; and what it would cost the Exchequer if overseas taxes and levies were allowed as a set-off against United Kingdom tax.
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§ Mr. NottThese profits are normally subject to tax in the countries where the companies' activities are carried on, and also in this country. In the case of overseas subsidiaries the liability arises on dividends paid to the United Kingdom parent. Overseas taxes on income or profits are allowable as a credit against United Kingdom tax on the overseas income; royalties and similar levies are normally allowable as a deduction in computing profits for United Kingdom tax purposes.