§ 44. Sir COOPER RAWSONasked the Chancellor of the Exchequer if he will consider drafting the terms of reference to the committee to be appointed by His Majesty's Government to investigate the position of co-operative societies in such a way as to exclude the taxation of their reserves; and will he impose a tax at once on such reserves similar to that imposed on other trading concerns?
§ The FINANCIAL SECRETARYto the TREASURY (Major Elliot): No, Sir. The Government propose to set up an impartial committee to examine the position of co-operative societies in relation to the Income Tax, and they think it better that the investigation should cover all aspects of the situation.
§ Sir C. RAWSONWould it not be quite easy to ascertain the amount of the reserves of the co-operative societies, and would it not be possible to put on a tax at once?
§ Major ELLIOTAs we are going to have an inquiry into the subject it would be a pity to prejudge the issue.
§ Mr. THORNEDoes the right hon. and gallant Gentleman think it would be possible to set up an impartial committee either from this House or the other House?
§ Major ELLIOTIn the case of this House, I think that, in the circumstances it would be impossible, but this committee will not necessarily be a committee of this House.
§ Mr. KIRKWOODIs it not the case that the Government would at once intervene to deal with the co-operators, only they are afraid of the co-operative vote?