asked the Chancellor of the Exchequer whether his attention has been drawn to an official letter sent to 400 American firms engaged in export trade giving the Treasury Department's assurance that normal expenditure for advertising in Latin America will be considered a justifiable and deductible trading expense for federal income tax purposes; and will he, in the interests of British trade, give similar facilities to our own exporting firms?
I have not seen the letter to which my hon. Friend refers. The position under our taxation code is that normal expenditure by United Kingdom concerns on advertising is a deductible trading expense for purposes of United Kingdom taxation.
Are the Government entirely satisfied with the position in which American firms are spending more than 12,000,000 dollars in advertising in South America while ours are spending nothing at all?
No, Sir, I am not.
In view of the supreme importance of this matter to my constituents, I can do no other than give notice of my intention to raise this vital question on the Adjournment at the earliest possible opportunity.