§ 35. Mr. Norman Bowerasked the Chancellor of the Exchequer why officials of nationalised industries are not to be called upon to make detailed justifications of their expense allowances to the Inland Revenue authorities in the same way as employees of private firms.
§ Sir S. CrippsThe hon. Member is misinformed. Officials of the nationalised industries will be dealt with in the same way as directors and employees generally.
§ Mr. BowerWill they have to make individual returns of their expenses in exactly the same way as employees of private concerns?
§ Sir S. CrippsIn exactly the same way.
36. Mr. Baker Whiteasked the Chancellor of the Exchequer on what grounds the Inland Revenue authorities agreed to recognise the Society for Cultural Relations with the Union of Soviet Socialist Republics as an educational charity, thus enabling it to reclaim Income Tax on contributions made under a deed of covenant.
§ Sir S. CrippsI cannot give information regarding the taxation treatment of individual cases.
Mr. Baker WhiteDoes not the Chancellor consider that however desirable it may be in normal circumstances to encourage cultural relations between two countries, under conditions of the cold war, to which the right hon. and learned Gentleman has himself made frequent reference lately, it is highly undesirable to ask the British taxpayer to subsidise what is frankly pro-Soviet propaganda?
§ Sir S. CrippsI still cannot give information on an individual tax case.
§ Mr. MolsonWas this decision taken by the Board of Inland Revenue without the intervention of the political chief of the department?
§ Sir S. CrippsI am afraid that the hon. Member cannot even be told if there was a decision.
40 and 46. Mr. H. D. Hughesasked the Chancellor of the Exchequer (1) how far his regulations permit subscriptions and donations to political party funds or for other political purposes to be deducted as admissible trading expenses in computing profits for the purposes of Income Tax and Profits Tax;
(2) whether he is aware that circulars have been sent by the Midland Industrialists Advisory Council to company chairmen inviting contributions from their businesses for political purposes; how far his regulations permit such contributions to be admitted as trading expenses; and what steps are taken by Inspectors of Taxes to ensure that they are properly accounted for and do not escape tax liability.
§ Sir S. CrippsI have seen the circular to which my hon. Friend refers. Subscriptions or donations by traders for political purposes are not permitted to be deducted in computing profits for the purposes of Income Tax or Profits Tax, and Inspectors of Taxes can be relied upon to challenge any such item which they find in examining a trader's accounts.
Mr. HughesIs the Chancellor aware that I hold in my hand evidence that the bulk of Conservative funds come not from contributions from individual collectors, but from industrial profits? Will he therefore take care to see that the Inland Revenue make sure that these are properly accounted for? Would it not be more honest if the Conservative Party appealed for funds under its own name?
§ Mr. BramallIf a contribution is made accompanied by a slip saying that it is a contribution to fight against municipal trading when the letter to which it is attached shows that it is one to a fund for Conservative candidates, would that count as a donation to a political party?
§ Sir S. CrippsPerhaps my hon. Friend would put a specific case to me, and then I might be able to give him an answer.
§ Mr. Emrys RobertsWill the Chancellor arrange to have the evidence produced by the hon. Member circulated in the OFFICIAL REPORT?
§ Lieut.-Colonel Sir Thomas MooreWould the Chancellor deny that Cooperative profits find their way into the treasury of the Socialist Party?
§ Sir S. CrippsI am afraid that I have no knowledge of whether they do or do not.
§ Mr. J. HudsonIs the Chancellor aware that the regulations regarding Income Tax on political party funds were made in the first place by the right hon. Gentleman the Member for Woodford (Mr. Churchill)? Has not the time come for some reconsideration of the plans which the right hon. Gentleman then made?
§ Sir S. CrippsI think that they are quite satisfactory.