Orders of the Day — New Clause. — (Charge to tax in respect of provision for retirement or other benefits to directors and employees of bodies corporate.)

Part of the debate – in the House of Commons at 12:00 am on 9 July 1947.

Alert me about debates like this

Photo of Captain Harry Crookshank Captain Harry Crookshank , Gainsborough 12:00, 9 July 1947

That is a view which may be held by the Communist Party but it is not universally held. There is a high judicial decision that if it is legal to do so, and if taxation can be avoided legally, there is no reason why people should not take advantage of it. That is a decision, I think, of the highest courts: whatever the moral view of it may be is another matter. All I was saying was that there are some people who will try to avoid taxation when it gets to such a high scale, and this and other features will progressively diminish when happier times come and taxation can be reduced. The other point that emerges and to which I would draw the attention of the right hon. Gentleman, and the Financial Secretary, is that when it had been decided, as it was decided, to tackle this problem, there might have been a saving of time and trouble to a great number of people if, granted the intentions of the Government were known, the Government had taken into consultation some of the experts, whom they were good enough to consult between the Committee stage and the Report stage, before they introduced the Bill. If they had been able much earlier to get into contact with certain people who gave them help they might have been saved much trouble and anxiety. It would have been much less trouble, and I had hoped that that course might have been adopted— obviously, under the ban of confidential talks.

But so long as the Government have found it necessary to embark on this very difficult sphere of law, and the complicated question of taxation on benefits and annuities, might it not be a good thing— again I only put it to the Government— to have all this field explored between now and some future Finance Bill? I did make some reference to this on a previous occasion. It has been explored in Canada and other Dominions because it is such a complicated part of the Income Tax law, and even if we are not going to clear up the whole field it might be well to look at this section of it. I suggest to the hon. and learned Gentleman that that might be a pleasant occupation for him when he has finished with the Finance Bill this year, and while he has leisure— if he is still in office—before the heavy duties which will come to him with the Budget of 1948. Having said that, I again express our gratitude to the hon. and learned Gentleman for having taken so much trouble in this matter. As at present advised, it seems to me that the new Clauses meet the bulk of the criticisms we put forward at an earlier stage, and I hope he will be able to give me formal assurances on the three points I have put to him.