HC Deb 08 May 1918 vol 105 cc2153-4
63. Mr. PETO

asked the Chancellor of the Exchequer whether the Co-operative Wholesale Society have purchased in the past two years approximately 30,000 acres of agricultural land for the purpose of co-operative farming; if so, whether the sanction of the Treasury has been obtained for the issue of capital to finance the transaction; and, if not, whether, in view of the fact that exemption from income and Excess Profits Taxes is claimed by co-operative societies for the reason that they do not make profits, he has made any inquiry as to the source from which the funds are derived for purchasing, working, and stocking this land?

Mr. BONAR LAW

I have no information with regard to the first part of the question. The answer to the second and last parts of the question is in the negative.

64. Mr. PETO

asked the Chancellor of the Exchequer whether, as under the Industrial and Provident Societies Act, 1893, Clause 24, a registered society that does not sell to persons not members thereof is exempt from payment of Income Tax under Schedule D, and as all persons who pay Is. can become members of any co-operative society, whether the Co-operative Wholesale Society will be able to farm the whole of the 30,000 acres recently purchased and pay no Income Tax if they elect to be assessed under Schedule D; and whether he proposes to take any steps to remedy the hardship to farmers of this provision and to prevent the exemption from war taxation of the co-operative societies from being used to-extinguish and destroy all individual agricultural and other industry?

Mr. BONAR LAW

The Commissioners of Inland Revenue are advised that in the event of election by a co-operative society for assessment in respect of the occupation of lands for the purpose of husbandry under Schedule D instead of Schedule B, it would not be competent to such a society to claim relief from the Schedule D charge made in pursuance of that election by reference to the provisions of the Industrial and Provident Societies Act, 1893.

Mr. WING

May we take it that co-operative societies bear the same proportion of taxation as any other order of persons?

Mr. BONAR LAW

Yes.