NEW TAXATION

Evening Star, Issue 22632, 26 April 1937, Page 8

NEW TAXATION

, /, , BRITISH BUDGET PROPOSALS UNEXPECTED IEPfRCUSSIOHS Press Association—By Telegraph—Copyright LONDON, April 24. Much of the resentment of the maps kets against the new taxes come from the inability to estimate the consequences, even in cases of individual companies. For instance, in the case of the Shell Transport Company, the assets of which consist largely of. interests in subsidiaries, the problem of assessing the capital profits opens-up innumerable difficulties; Accountants and lawyers are rubbing their hands in glee at the expectation of endlegs business. Repercussions of the tax bob up daily in all sorts of unexpected directions. ■ '

The * Financial Times 1 ’ voices tha suggestion, which is gaining ground in the city, that Mr Neville Chamberlain should substitute a tax similar to tha one imposed by his brother. Sir Austen Chamberlain, in 1920. This was tha corporation tax. which was a straightforward levy of 6d and Is in the £, subject to adjustments in favour of weak companies. This at least wa» straightforward.

It is becoming, increasingly cleaj:..that the City will not be satisfied with minor amendments. It reads, if N.D.C.” not as “ national defence contribution, but as “no - contribution.”

ONLY A TEMPORARY MEASURE. The Government has thus far not at* tempted to answer the bulk of the criti* cisms. Mr Chamberlain has expressed the opinion that it is impossible to pass on the tax as the duty on excess profits is passed on, for sellers have not all the cards as in wartime. Moreover, the tax is only temporary, for which reason a firm, in attempting to put), profits into buildings and equipment, ; might find itself saddled with liabilities. The City derives some from the Chancellor’s promise to consult business men. The wags .point out that as secrecy prevented him from doing so earlier, the real author of the Budget is Mr J. H. Thomas. i