§ 107. Captain WRIGHTasked the Chancellor of the Exchequer what has been the 1 annual sum lost to the Exchequer by way 1549 of taxation from the date of the coming into operation of the Industrial and Provident Societies Act, 1893, up to this year owing to the provisions of that Act by which such societies are relieved from the payment of Income Tax?
§ Mr. McKENNAThe hon. and gallant Member is mistaken in supposing that there is or has been a loss of Income Tax due to the legal provisions to which he refers. As has been repeatedly explained in this House, profits distributed by these societies are assessable in the hands of the individual members who are liable to Income Tax, and sums placed to reserve are covered by the payments of Income Tax, Schedule A., in respect of the annual value of the premises of the societies, which would be allowable as a deduction in computing the profits if the societies were directly assessable. What has resulted from the provisions in question is that they have rendered unnecessary an enormous number of Income Tax repayment claims. The public have gained in convenience and the State has been spared a needless expense. As has already been indicated, the whole subject will be brought to the notice of the Committee to be appointed after the War.
§ Captain Sir OWEN PHILIPPSWould the same remark apply to the Surplus Profits Tax?
§ Mr. McKENNANo; the same considerations do not apply.