§ Mr. Buchanasked the Chancellor of the Exchequer if he will issue guidance to business men on the tax position of donations for the purposes of European movements.
§ Mr. Robert SheldonMy right hon. Friend wrote to my hon. Friend on 17th April explaining that in computing profits for tax purposes
no deduction is allowed for expenditure which is not wholly and exclusively laid out for the purpose of the business. The treatment of donations or subscriptions to organisations campaigning for or against the EEC depends on the facts of each individual case in the light of this rule. All sorts of factors, including details of the business concerned, might have to be taken into account in considering a claim for a deduction. In the last resort, where the Revenue and the taxpayer could not agree, the matter would have to go to the Appeal Commissioner or to the Courts.With my hon. Friend's permission extracts from that letter are being made available to persons or organisations who make inquiries on the point. I do not think any further action is required.