HC Deb 14 November 1944 vol 404 c1790
52. Sir L. Lyle

asked the Chancellor of the Exchequer whether he will consider the desirability of amending Subsection (5) of Section 27 of the Finance Act, 1920, so as to provide that deduction from the rate of United Kingdom Income Tax in respect of Dominion Income Tax relief should be restricted to dividends on shares other than those carrying a fixed preferential rate of dividend.

The Chancellor of the Exchequer (Sir John Anderson)

I note my hon. Friend's suggestion, which will be borne in mind when occasion arises for reviewing the existing arrangements for relief of double taxation.

Sir L. Lyle

Is it not a fact that in the first instance companies operating in the Dominions pay both United Kingdom and Dominion tax, and therefore the relief only makes them the same as a company working in the United Kingdom? Further, is it not a fact that if compelled to pass on the relief the tax they pay is 15s. or thereabouts?

Sir J. Anderson

I had assumed that that was the point of my hon. Friend's Question; the matter was carefully considered in the first instance.