§ Mr. Arthur Lewisasked the Secretary of State for Employment whether he is aware that any business man is able, under the Government's present incomes policy, to establish a holding company overseas and pay himself and his staffs unlimited incomes and increases from this company within or outside the Government's incomes policy; and what action he proposes to take to deal with this.
§ Mr. BoothEarnings from overseas companies which are paid in respect of employment in this country are subject to the pay guidelines. Each case involving income from employment abroad is considered on its merits. The general principle is that pay policy applies to all such earnings except in those limited situations where they are regarded by the Inland Revenue as "overseas earnings" for tax purposes.