I move:—
That paragraph (a) of sub-section (6) of Section 21 of the Finance Act, 1922, shall be amended by the deletion therefrom of the words and figures "which has, since the 5th day of April, 1914, been registered under the Companies Acts, 1908 to 1917" now contained therein and the insertion in the said paragraph of the words and figures "which is a company within the meaning of the Companies (Consolidation) Act, 1908" in lieu of the said words and figures so deleted.
The object of Section 21 of the Finance Act, 1922, is to prevent the avoidance of payment of surtax by members of private companies. The section provides that if a reasonable proportion of the profits of the year is not distributed in dividends, the whole of the income of the company may, in certain circumstances, be treated as income of the members for the purposes of surtax. The section as it stands applies to any company which, amongst other conditions, has since 5th April, 1914, been registered under the Companies Acts. There is no reason for, and there are good reasons against, restricting the application of the section to companies registered since 5th April, 1914, and the Resolution proposes, accordingly, to apply the section to all companies otherwise within its scope without regard to the date of registration.
