§ 63 and 65. Major-General Sir ALFRED KNOX
asked the Chancellor of the Exchequer (1) why, as in the case of other companies, Income Tax was not charged on the £1,500,000 written off by the co-operative societies as excess depreciation in 1928; what is the amount of excess depreciation deducted annually by these 1341 societies during the years 1914 to 1929, inclusive; and what is the total amount of Income Tax that would have accrued to the State if these societies had been assessed as ordinary trading companies;
(2) whether the increase in the reserve funds of the co-operative societies in 1928, amounting, according to the Co-operative Annual Congress Report to £3,140,799 (from £20,157,306 to £23,298,135), was assessed for Income Tax; and, if not, for what reason?
§ Mr. P. SNOWDEN
The hon. and gallant Member will find in Section 39 (4) of the Income Tax Act, 1918, the exemption from Income Tax Schedules C and D in favour of co-operative societies registered under the Industrial and Provident Societies Act, 1893. With regard to the second and third parts of his first question, I can add nothing to the statement furnished in reply to the hon. and gallant Member's question of the 8th May last in which a full computation was given of the additional tax that would be payable if the societies were assessed as suggested by him.
§ Sir A. KNOX
Why is there this differentiation between the co-operative societies and companies as regards the taxation of reserves?
§ Mr. SNOWDEN
I have directed the attention of the hon. and gallant Member to the fact that all this is regulated under the Act of 1918.