§ MR. EMMOTT (Oldham)To ask Mr. Chancellor of the Exchequer whether his attention has been called to the fact that income-tax is charged on contributions made by firms in the cotton trade to the British Cotton Growing Association; whether, seeing that such contributions are wholly and exclusively laid out or expended for the purposes of such trade, he will give instructions that such contributions shall not in future be assessed for income-tax.
(Answered by Mr. Austen Chamberlain.) I find on inquiry that the Board of Inland Revenue have no knowledge of the assessments referred to in the Question. If such assessments have been made, their legality could only be definitely decided by an appeal to the High Court from the district Commissioners of Taxes; but it may be convenient that I should point out that, in the analogous case of contributions by a colliery company to a coalowners' association, the Courts have held that the subscription is not money laid out for the purposes of trade, and is not therefore admissible as a deduction from the profits of the company for purposes of assessment to income-tax (vide Rhymney Iron Company, Limited, v. Fowler, 2 Q. B. 79 (1896). I have, in any case, no authority to give such instructions as the hon. Member suggests, arid no power to enforce them.