DOUBLE TAXATION

Dominion, Volume 17, Issue 290, 24 August 1923, Page 3

DOUBLE TAXATION

MOYE TO END TROUBLESOME SYSTEM EXEMPTION FOR SHIPPING Important decisions, to exempt shipping from double taxation, end to take the initial steps that will lead to the abolition of double taxation in all countries, are involved in a new clause in the British Finance Act, which has been passed by the House of Commons. Sir W. Joynson-Hicks (Financial Secretary to the Treasury), in moving tne new clause, which provides for relict from double taxation of profits irom the business of shipping, said that it introduced something in the nature or a new principle in financial legislation. There had been considerable difficulties for many years on the question pt double taxation between Great Britain and foreign countries. The League ot Nations had set up a committee to consider the whole question, but the committee would necessaril” take some considerable time before arriving at a decision, and before mutual legislation could be achieved in all the countries of the world. Obviously, shipping was more severely hit than any other industry by double taxation, not merely in regard to the amount but the enormous complexity of every kina of return which shipping companies had to make in countries all over the. world. The United States had had the matter in hand, and, in 1921, passed a law, offering to exempt from United States income-tax shipping in any foreign country which was ready to grant equivalent exemption. The First Olive Branch.

That, so to speak, was the first olive branch held out to Great Britain by any foreign country. When the Chamber of Shipping of Great Britain had considered the proposal, they asked the Chancellor of the Exchequer to accept the olive branch, and to grant, the same kind of exemption to American shipping. The matter had been very carefully considered, and the Government had come to the conclusion that, in the interests of the shipping trade of Great Britain, it was highly desirable to take every possible step to get rid of the very troublesome system of double taxation. His hope was that, if the clause was accepted, and proved to be a success, it would be the forerunner of a larger scheme, to exempt all trades from double taxation throughout the world. Power was taken under the clause to make an Order-in-Council, after negotiations had taken place, with the United States or any foreign country, exempting the shipping of that country with which agreement had been arrived at, from paying income-tax in Great Britain, provided such- Order-in-Council should be laid on the table of the House of Commons for 21 days.