53. Dr. Russell Thomas
asked the Chancellor of the Exchequer whether any company, promoted with the object of guaranteeing builders and engineering firms against disbursements in connection with holidays with pay, have claimed exemption from taxation under Section 34 of the Income Tax Act, 1918, of interest on funds accumulated under such a scheme; and whether such accumulated funds are liable for reimbursement to the employers who have subscribed to such a scheme but who, during the accounting year, owing to the transference of labour to other industries have made no claims.
§ Sir J. Anderson
I am not clear what my hon. Friend has in mind, but I gather that he is asking me to make a statement as to the taxation position of a particular concern, and I am afraid I cannot express any opinion as to the liability to tax in particular cases.
Is the Chancellor aware that a certain company collected, in about 15 months, £1,700,000 from employers, for holidays with pay, and disbursed only £250,000, and invested £1,300,000 in War Bonds, which brought in £17,000 interest, on which the Revenue authorities admitted a claim for exemption? Does he not think that in such cases some tightening of the law is necessary?