DEFENCE CONTRIBUTION

Evening Star, Issue 22682, 23 June 1937, Page 9

DEFENCE CONTRIBUTION

THE TAX ON PROFITS RESOLUTION PASSED BY COMMONS Press Association—By Telegraph—Copyright LONDON, June 21. In the House of Commons, tho Homo Secretary (Sir John Simon), in moving the adoption of tho now tax on profits, explained that it would he charged on the profits of trades and businesses carried on in tho United Kingdom, also on those carried on outside tho United Kingdom and by those resident in the United Kingdom. Sir Alan Anderson objected to tho application of the tax to companies trading abroad with shareholders throughout the world, simply because they had their headquarters in London. It was important to encourage business people operating abroad to locate their headquarters in Britain. Mr R. J. G. Boothby raised the point whether the dominions would accept tho tax as part of production costs, or would tho sum paid in tax bo subject to full income tax in the dominions. If so, these companies would be at a serious disadvantage in relation to competitors who had no offices in London or did not operate overseas. The resolution was passed by 231 votes to 98.