Post-War Income Tax on Industry

Part of the debate – in the House of Commons on 25th April 1944.

Alert me about debates like this

That brings me to what is, in some respects, the most important part of what I have to say, for it concerns the methods of measuring the profits of industry on which Income Tax in the post-war period will fall. The Committee may remember that a fresh study of the position of industry in relation to the incidence of Income Tax on profits was initiated by my predecessor a year ago, when he announced that he had asked the Board of Inland Revenue to examine the subject, with particular reference to profits which are not distributed but are ploughed back into the business for further development, and the treatment of capital expenditure for which no allowance is made in the existing Income Tax code. Evidence has been received since that time in the course of a very full inquiry, from organisations representing industry, including agriculture, and the whole subject has been anxiously examined by my advisers and by myself since I took my present office some six months ago. As a result, I am now able to give the Committee some important declarations of Government policy.