43. Mr. H. D. Hughes
asked the Chancellor of the Exchequer whether subscriptions by industrial firms to the organisation known as "Aims of Industry" will be regarded by the Commissioners of Inland Revenue as a legitimate business expense for taxation purposes.
§ Sir S. Cripps
Claims for the allowance of these subscriptions as deductions in computing the profits of the subscribers for the purposes of Income Tax (Schedule D) and Profits Tax will be dealt with according to the general principles governing such deductions, which are that subscriptions are deductible only to the extent that they are applied to expenditure which would have been admissible as a deduction if incurred by the subscribers themselves. As I explained in reply to questions by my hon. Friend on 18th January last, subscriptions or donations by traders for political purposes are not permitted to be deducted in computing profits.
Is my right hon. and learned Friend aware that this allegedly non-political organisation is, in fact, an under-cover agent for Tory party propaganda of the most vicious kind; and will he instruct the Inland Revenue to watch with especial care this type of organisation, which is afraid to show its true colours?
Mr. Ivor Thomas
Is the right hon. and learned Gentleman aware that what the hon. Member for West Wolverhampton (Mr. H. D. Hughes) has alleged cannot be 1959 the case, because this body asked me to give a talk on the nationalisation of steel when I was an Independent and, when I became a Conservative, informed me that they did not wish to have me as a speaker?
§ 48. Mr. Houghton
asked the Chancellor of the Exchequer whether he will ensure that the Income Tax aspects of the growing commercial practice of charging entertainment as a business expense will receive the attention of the Committee on the Taxation of Profits, recently appointed.
§ Sir S. Cripps
The Committee will no doubt take note of my hon. Friend's desire that they should consider this question.