§ 36. Colonel HOWARD-BURYasked the Chancellor of the Exchequer whether he is aware that co-operative and registered societies obtain exemption from tax under Schedules C and D if they sell to persons not members thereof and the number of its shares is limited by its rules or practice; and if he will state under what authority such exemption is allowed?
§ Mr. CHURCHILLUnder the provisions of Section 39 (4) of the Income Tax Act, 1918, a society registered under the Industrial and Provident Societies Act, 1893, is entitled to exemption from tax under Schedules C and D, unless it sells to persons not members thereof, and unless the number of its shares is limited by its rules or practice. I am not aware that those provisions have been applied to any society in whose case the statutory requirements are not met, but if my hon. and gallant Friend has in mind any such case and will let me have the necessary particulars, I will gladly have the matter investigated and will communicate the result to him in due course.
§ Colonel HOWARD-BURYIs it not generally the practice of co-operative societies to sell to non-members as well as members, giving coupons which entitle them, if they wish, to become members after six months?
§ Mr. CHURCHILLI can add nothing to the answer I gave, conveying an intimation to the hon. and gallant Gentleman that I will consider any case that he has in mind.
§ Mr. A. V. ALEXANDERIs it not a fact that repeated inquiries have shown that on the whole turnover of hundreds of millions of pounds sterling the trade with non-members is infinitesimal?
§ Colonel HOWARD-BURYIf that be so, they do trade with non-members.
§ Mr. MACLEANIs it not the case that this is so infinitesimal that, if any 1161 attempt were made to impose taxation, the amount would be so small that it would not pay for the cost of collection.
§ Mr. SPEAKERThe hon. Member is debating the question.