INCOME TAX

Dominion, Volume 13, Issue 149, 19 March 1920, Page 7

INCOME TAX

REPORT OP ROYAL COMMISSION. (Rec. March 19, 1.15 aim.) London, March 17. The report of the Income Tax Commission, referring to foreign countries, doe 3 not recommend any nhange in "Hie existing situation as regards double taxation. On the general question,of assessment the report proposes that full income arising abroad from all foreign or colonial securities or possessions otber than trade should be assessable in the case of persons rending in the United Kingdom. As regards trading operations of British registered companies, the _ Commission considers tho present doctrine of preference of control should not bo weakened, also where operations are carried on abroad by a foreign board or subsidiary company the parent company and the subsidiary should be deemed ,to be controlled from within the United Kingdom, if a majority of the rjting power can be exercised therein. In the matter of assessment,, the report suggests that earned income should be diminished by one-tenth for the purpose of assessment, and diminished income charged at a rate applicable to unearned income; also that tho first of taxable income be charged at half the standard lete of tax. Further, that dividends of companies controlled abroad, though registered in the United Kingdom, should be Placed in the hands of a paying agent, ,who would bo entitled to deduct tho tax on' payment of dividends.—lmperial News Sorvice.