§ Lord BEAUMONT of WHITLEYasked Her Majesty's Government:
Whether the Statement on taxation of prostitutes' earnings made by a Minister (House of Lords Official 1235WA Report Vol. 363, col. 1300) is a correct account of present practice and, if not, whether they will make a further Statement on this matter.
§ Lord WELLS-PESTELLI regret that the Statement referred to was not correct. The position is as follows. The Inland Revenue take the view that prostitution, if sufficiently organised, amounts to a1236WA trade and that, accordingly, any profits arising from such activities are assessable to tax. It is not possible to estimate the loss of income tax to the Exchequer consequent upon the imprisonment of prostitutes.
House adjourned at eight minutes past seven o'clock.