§ 39. Mr. Callaghan
asked the Chancellor of the Exchequer if he is aware that certain companies in receipt of large capital allowances for tax purposes have been assessed on profits totalling £127 million but have paid gross dividends of £228 million to their shareholders; what is his estimate of the loss of revenue in these cases; and what action he intends to take.
§ Mr. Maudling
Yes. The companies concerned have paid the proper rate of 127W tax on their profits and subsequent payment of dividends cannot of itself lead to any loss of revenue. Any question of subsequent repayment or charge to Surtax depends upon the circumstances of the recipient of the dividend.