TAX ON PROFITS

Timaru Herald, Volume CXLIII, Issue 20762, 24 June 1937, Page 9

TAX ON PROFITS

EXPLAINED BY BRITISH CHANCELLOR United Press Association—By Electrio Telegraph—Copyright LONDON, June 21. Sir John Simon (Chancellor of the Exchequer) moving the adoption in the House of Commons of the new tax, explained that it would be charged on 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 war important to encourage business people operating abroad to locate their headquarters in Britain. Mr R. J. Boothby. raised the point whether the Dominions would accept a tax as part of production costs, or would the sum paid in the 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.

The resolution was passed by 231 votes to 98.