Clause 18. — (Powers of special Commissioners to obtain copies of registers of securities.)

Part of Orders of the Day — Finance Bill. – in the House of Commons at on 17 June 1930.

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Photo of Mr Arthur Samuel Mr Arthur Samuel , Farnham

I should like to ask what we are doing here. Let me read the first three lines: The special commissioners may cause to be served upon any body of persons, whether incorporated or not, a notice requiring them to deliver"— What is the Clause driving at? I am quite at a loss to understand precisely what it means. We should be allowed to know exactly the motive underlying it before we deal with the Amendments. [Interruption.] The right hon. Gentleman gives vent to some expression of impatience, but we are entitled to know what the Clause driving at before we can deal with the details. Presumably it is cast in order to, allow the revenue authorities to check the returns for Surtax. Is it a fact that any companies which have to lodge a register have refused to any clerk of the Revenue Department permission to make a copy? Why, therefore, do we have this Clause, which compels these companies that lodge registers at Somerset House on payment of a small fee to send in a return of their shares, instead of our being satisfied by a clerk from the revenue calling to make a copy of it? I gather from the Chancellor that there are certain companies which do not lodge registers there. I understand that statutory companies and companies which hold a charter are not compelled to lodge these returns. The Clause, if I understand it rightly, is by a side wind going to compel railway companies and chartered companies, like the Chartered Bank of India, to lodge their list of proprietors on payment of a prescribed fee so that the Inland Revenue authorities can say, "Look at these names. Mr. Snooks has sent in a return for Sur-tax. Let us see if he has included a certain amount of money which he holds as shares in these statutory companies?" It is a petty, trumpery way of getting at Sur-tax returns. What is more, if you are going to allow the Revenue authorities under the first three lines of the Clause to get in these returns, see how the Chancellor of the Exchequer will stultify himself. What is he going to do about the bonds to bearer of the 5 per cent. War Loan, or, say, the new Reparations loan? This clause won't catch them.