NEW PROFITS TAX

Greymouth Evening Star, 22 June 1937, Page 11

NEW PROFITS TAX

PROTEST IN COMMONS

[BY CARLE —PRESS ASSN. —COPYRIGHT.] (Recd. June 22, 2.15 p.m.) LONDON, June 21. Sir J. Simon, moving the adoption in the House of Commons, of the new tax, explained that it would be charged on the profits of trades and businesses carried on in the United Kingdom, also on those carried on outside the United' Kingdom, and by those resident in the United Kingdom. Sir Alan Anderson objected to its application to companies trading abroad, with shareholders throughout the world, simply because they had headquarters in London. It was important to encourage business people operating abroad to locate their headquarters in Britain. Commander Boothby raised the point whether the Dominions would accept the tax as part production costs, or would the sum paid in tax be subject to the full Dominion income tax. 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. Tho resolution was passed by 231 voles to 98. PREPARING FOR SLUMP. An influential group of members of the House of Commons, representing important city interests, is pressing the Prime Minister to appoint a Royal Commission to draw up plans to at least mitigate the next slump. The I Government, so far has not conceded that. Government action can influence I trade depression, but the opinion is growing that it is necessary to plan machinery to deal with the situation which is likely to arise after the completion of tho Government re-arma-ment programme.