§ 50. Mr. MABANEasked the Chancellor of the Exchequer if any cases have been brought to the attention of the Treasury of co-operative trading societies trading with non-members?
§ Mr. HORE-BELISHAIt is, I think, common knowledge that co-operative societies trade to some extent with non-members.
§ Mr. MABANEAre we to take it from the reply that no such trading takes place, or that if such trading does take place the Department takes any action under the Industrial and Provident Societies Act?
§ Mr. HORE-BELISHAWe know that it does take place.
§ Mr. MABANEWhat action then is taken under the Industrial and Provident Societies Act?
§ Mr. HORE-BELISHAMy hon. Friend is under a misapprehension. It does not matter whether the trading is with members or non-members. The profits are taxed.
§ Mr. LEONARDHas the hon. Gentleman any reason to doubt the evidence that this form of trading by co-operative societies is only one-half per cent.?
§ 51. Mr. MABANEasked the Chancellor of the Exchequer whether the Commissioners of Inland Revenue are guided by any precise definition of mutual trading in making their assessments to Income Tax of those who claim to be engaging in mutual trading; and, if so, whether he will state what that definition is?
§ Mr. HORE-BELISHAThe Income Tax Acts do not define mutual trading, but my hon. Friend is, of course, aware that since the enactment of Section 31 of the Finance Act, 1933, Income Tax is chargeable on all trading profits of incorporated companies or societies, whether of a mutual character or not. In these circumstances the question whether the company's or society's trade is to any extent mutual does not arise for Income Tax purposes.