Entertainments (Income Tax Deductions)

Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 28th July 1964.

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Photo of Mr James Dempsey Mr James Dempsey , Coatbridge and Airdrie 12:00 am, 28th July 1964

asked the Chancellor of the Exchequer what was the total value of entertainments deducted for Income Tax purposes in the most recent year for which figures are available.

Photo of Mr Alan Green Mr Alan Green , Preston South

I am afraid this information is not available.

Photo of Mr James Dempsey Mr James Dempsey , Coatbridge and Airdrie

Can the Minister give me some idea of the definition of "entertainments" under the Act? Can he say what proportion of the money is used for the purpose of subsidising strippers, and night club workers, for instance? Is he aware that these premises provide not only entertainment but ladies of easy virtue? Should not taxpayers be protected against this sort of abuse? Can he state here and now whether he is satisfied that expenses for entertainment purposes are not exaggerated?

Photo of Mr Alan Green Mr Alan Green , Preston South

I cannot answer from an expert point of view most of the questions that the hon. Gentleman raised. Perhaps he will accept this as an answer: to be allowable for tax purposes expenses must be incurred for genuine business reasons. These are subject, in the first case, to the normal processes of audit, and in the second, to the scrutiny of the inspector of taxes.