§ 59. Sir B. PETOasked the Chancellor of the Exchequer whether his attention has been called to the instructions issued to co-operative societies by the National Co-operative Authority to increase the rates of depreciation and wear and tear, and reduce the allocation to reserve, now liable to Income Tax, in order to escape taxation; and whether co-operative societies will be permitted to reduce the capital value of their assets by larger percentages than are permitted to private traders under Income Tax law?
§ The FINANCIAL SECRETARY to the TREASURY (Mr. Hore-Belisha)I am aware that the National Co-operative Authority has recommended certain lines of policy to co-operative societies in relation to their Income Tax liability, though I do not understand them to include a recommendation that rates of depreciation and wear and tear should be increased in order to escape taxation. In any event, my hon. Friend may rest assured that in the matter of deprecia- 567 tion and wear and tear, as in other respects, the provisions of the Income Tax law will be applied to co-operative societies in precisely the same way as to private traders, and there is no question whatever of any greater rates of allowance being obtained by the societies than those granted to other concerns.