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Income Tax.

Oral Answers to Questions — National Finance. – in the House of Commons on 26th November 1936.

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Photo of Sir Geoffrey Mander Sir Geoffrey Mander , Wolverhampton East

asked the Chancellor of the Exchequer whether it is the practice of the Treasury in assessing industrial concerns for Income Tax, in cases where it appears that sums entered as expenses are likely to have been used for purposes of bribery or secret commissions, either to ask for the name of the recipients or to charge Income Tax on the amounts to the donors?

Mr. CHAMBERLAIN:

The question whether a particular payment is admissible as a deduction in computing for Income Tax purposes the profits of a trade falls to be determined, not by reference to the character of the payment, but solely by reference to the consideration whether it represents expenditure wholly and exclusively incurred for the purposes of the trade. The hon. Member may rest assured that all possible steps are taken to secure the due assessment of any liabilities arising under the Income Tax law in respect of the payments which he has in mind.

Photo of Sir Geoffrey Mander Sir Geoffrey Mander , Wolverhampton East

Would it be possible for the Chancellor to give any indication of the amount of revenue obtained from this particular source, if I put down a question?

Mr. CHAMBERLAIN:

I will look into that point.

Photo of Mr Ernest Thurtle Mr Ernest Thurtle , Shoreditch

May I ask whether contributions to political party funds are recognised as legitimate expenses in this category?

Mr. CHAMBERLAIN:

That depends upon whether they fall under the considerations I have mentioned.