Clause 19. — (Interest Payable Abroad to Be Deductible in Computing Profits in Certain Cases.)

Part of Orders of the Day — Finance Bill – in the House of Commons at 12:00 am on 23 June 1949.

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Photo of Mr Nigel Birch Mr Nigel Birch , Flintshire 12:00, 23 June 1949

The point made by the Solicitor-General was that this proposed Amendment could not work, because it would be impossible for the Income Tax Commissioners to decide what was reasonable interest. The effect, therefore, of refusing this Amendment is that such partnerships will be penalised. Might not that be avoided, and substantial justice done if the Government accepted a suggestion under which the maximum interest was 5 per cent., or something like that? Could the Solicitor-General give an assurance that he would accept an Amendment which did not put the onus upon the Commissioners of deciding what was a reasonable rate of interest?