§ Sir G. Jonesasked the Chancellor of the Exchequer what proportion of the net profits made by the Co-operative Societies from the outbreak of war to the present or nearest convenient date has been charged with Income Tax; whether, in view of the present high level of taxation and its serious effect on non-cooperative traders, he will, in the case of Co-operative Societies who trade with persons who are not members of such societies, repeal Sub-section (3) of Section 31 of the Finance Act, 1933, whereby such societies may deduct as expenses any sums which they pay as discount, rebate, dividend or bonus.
§ Sir J. AndersonSince 1933 Co-operative Societies have been taxed on the whole of their profits in the same way as limited companies. The "divi." paid by such Societies, which is the sum paid as discount, rebate, dividend or bonus referred to in Sub-section (3) of Section 31 of the Finance Act, 1933, is allowed as a deduction in arriving at the assessable profits in the same way as a discount or rebate allowed by a company would be deducted, and I am not prepared to propose legislation to alter this position, which is in accordance with the recommendations both of the Royal Commission on the Income Tax and of the later Raeburn Committee. I must point out that the deduction admissible under Sub-section (3) of Section 31 does not extend to any sum calculated by reference to any share or interest in the capital of the Society.