§ A registered society shall once at least in every three years make out and send to the registrar, together with the annual return for the year, a special return signed by the auditor or auditors showing the holding of each person in the society (whether in shares or loans) at the date to which the said annual return is made out: 1441 Provided that where such persons are in the list of members kept by the society distinguished by numbers it shall be sufficient if they are distinguished in the special return by such numbers, and in that case it shall not be necessary to specify their names.
§ Mr. GLYN-JONESI beg to move to leave the words "three years" and to insert instead thereof the word "year."
The Clause as it now stands requires that the return should be made every three years. I understand that the object of the Clause is really to provide that where people invest in co-operative societies nothing but the simple amount should be known. Under the principal Act no person may invest more than £200 in any one society, but there is nothing to prevent a person investing in every society that chooses to take his money. In that way he might have a large sum invested and escape payment of anything in the shape of Income Tax. It seems to me that the Clause as it stands casts an enormous amount of work and trouble upon industrial societies without being in any way effective.
§ Mr. GLYN-JONESI am moving the Amendment to leave out the words "three years" and to insert the word "year," but that Amendment must be read with another of which I have given notice, to leave out the words "of each person in the society (whether in shares or loans) at the date to which the said annual return is made out: Provided that where such persons are in the list of members kept by the society distinguished by numbers it shall be sufficient if they are distinguished in the special return by such numbers, and in that case it shall not be necessary to specify their names," and to insert instead thereof the words, "and the name and address of every person who by way of shares or loans has a holding exceeding ten pounds."
I have no desire to interfere with the time at which this return should be made. What I am asking the Committee to say is that it is reasonable to ask every year for a return of those who have any considerable holding in the societies. I admit frankly that the great mass of these cases the holders are bonâ fide workmen whose total income is below the Income Tax limit, but there is this possibility that a person may 1442 have the full £200 in as many societies as choose to accept the investment. My Amendment would relieve the society of making useless returns in regard to the whole of its members. As the Clause stands I think that the whole thing is absolutely worthless and throws needless work and trouble upon the co-operative societies.
§ Sir W. BULLI desire to support the Amendment. I am in full sympathy with the co-operative movement, but these societies should conform to the usual law which is applied to companies. I cannot see why they should not make a return once a year exactly the same as ordinary companies do. I am also in favour of the second Amendment that these returns should state the names, addresses, and occupations rather than the numbers. There is a substantial risk that persons who are capitalists should invest in different societies, and it is impossible for the Revenue to find out without a great deal of difficulty whether they are liable for Income Tax. A third Amendment is that every return made under Section 14 of the principal Act shall be kept in a register which may be inspected by any person on payment of a 1s. fee. I would have no objection to the fee being reduced to 6d. or even 3d., but the principle should be adhered to.
§ The CHANCELLOR of the DUCHY of LANCASTER (Mr. Hobhouse)I propose to answer the three Amendments put before the Committee at the same time, though in form they are directly contradictory to each other. The fact is that the whole of this Clause is to get a statement of the position of each of the members of the various societies in relation to his own society. This is entirely a domestic matter for the convenience of members of the society.
I explained the whole of the circumstances on the Second Reading, and I do not propose to trouble the House any further, save to say that I am unable to accept any of the Amendments.
§ Mr. BARNESI think the mover of the Amendment and the hon. Gentleman opposite have entirely misconceived the object of this Clause. Its object is not to show up co-operators to the ordinary public; it is to enable a member of any co-operative society to safeguard his own interest in requiring the society to make a return once in three years, along with the balance sheet.
§ Mr. GLYN-JONESI ask leave to withdraw my Amendment.
§ Amendment, by leave, withdrawn.