§ 40. Mr. MAITLANDasked the Chancellor of the Exchequer on what basis building societies are assessed for Income Tax, and the aggregate tax, other than under Schedule A, paid by such societies for the last year the information is available?
§ The CHANCELLOR of the EXCHEQUER (Mr. Philip Snowden)I 1264 regret that the statistics collected in regard to the Income Tax do not distinguish the amount of tax paid by building societies, which includes tax suffered by deduction from investment income as well as tax paid directly to the revenue. The taxation of the societies is subject to a special arrangement of many years standing which was designed to avoid the necessity of large numbers of assessments on small properties and repayments on small amounts of interest.
§ Mr. MAITLANDI am not quite sure whether I heard the right hon. Gentleman aright. Did I understand him to say that there was a special arrangement with regard to the basis upon which building societies are taxed?
§ Mr. SNOWDENYes.
§ Mr. MAITLANDMay I ask, then, if the right hon. Gentleman is satisfied that that basis is fair to all parties, including the members of building societies, and, if so, will he consider the application of a similar basis to the taxation of co-operative societies?
§ Mr. SNOWDENThe latter part of the question does not arise out of the original question. In regard to the first part, I may say that the question of some revision of the arrangements between the Revenue authorities and building societies in regard to Income Tax has for some time been under consideration.