§ Section eighteen of the Finance Act, 1923 (which gives relief from double taxation in the case of profits arising from the business of shipping), shall apply in relation to profits or gains arising from the business of air transport as it applies in relation to profits or gains arising from the business of shipping, and accordingly the said Section shall have effect as if—
- (1) in paragraph (a) of Sub-section (1) thereof, after the words "from the business of shipping," there were inserted the words "or from the business of air transport"; and
- (2) after the word 'ships' in Sub section (4) thereof, there were inserted the words "and the expression 'business of air transport' means the business carried on by an owner of aircraft."—[Mr. P. Snowden.]
§ Brought up, and read the First time.
§ Motion made, and Question proposed, "That the Clause be read a Second time."—[Mr. P. Snowden.]
§ Sir SAMUEL HOARE
I am obliged to the Chancellor of the Exchequer for putting his name to this Clause, in which many Members on both sides of the House take a sympathetic interest. I need not detain the House for more than two or three minutes, but I think it would be courteous in one or two sentences to explain what is actually happening under this new Clause. During the War, when every Treasury was searching for increased revenue, there was a danger that certain companies, particularly transport companies, might be subjected to double or even treble taxation, and in subsequent years there was also the danger of a taxation war starting between one Government and another. Obviously, a war of that kind would have been most objectionable from every point of view, and in the Finance Act, 1923, power was given to make an 1092 Order in Council under which, where a reciprocal agreement had been reached? between one Government and another, certain companies, in that case shipping trading companies, would be exempt from double taxation. If at that time air transport companies had been operating, I am sure that exactly the same conditions would have been extended to them. Since then, air transport companies have developed and have extended their activities to all parts of the world, with the consequent risk of being subjected to double taxation. The time has now come when air transport companies should be given the same facilities as are given to shipping companies under the Act of 1923. That is the explanation of this Clause, and we are much obliged to the Chancellor of the Exchequer for accepting it.
§ Clause added to the Bill.