§ Flight-Lieutenant Teeling
asked the Chancellor of the Exchequer whether he is aware that in Canada the following taxes are levied on the profits of corporations: an Income Tax of 18 per cent, of total profits as computed, a further tax of 12 per cent, called an Excess Profit Tax but of the nature of Income Tax, levied on the total profits as computed for Income Tax whether or not these exceed the standard profits for purposes of Excess Profits Tax and with no alternative in the case of such excess, and a further tax, whichever is greater, of either 10 per cent, of total profits as computed for Income Tax or 100 per cent, of profits in excess of the standard profits; that the second of these taxes does not rank for Dominion tax relief; and whether he will insert a provision in the next Finance Bill that it shall so rank.
§ Sir J. Anderson
I regret I cannot see my way to adopt my hon. and gallant Friend's suggestion for legislation. Under the provisions of Section 27 (8) (c) of the Finance Act, 1920, it rests with the Special Commissioners of Income Tax to decide whether any Dominion tax qualifies for the purpose of double Income Tax relief, and if any taxpayer does not accept the view of the Inland Revenue Department in regard to the tax to which the Question relates his proper course is to appeal to the Special Commissioners. 678W I am informed that the issue has not yet been raised with those Commissioners.