Captain BROWNasked the Chancellor of the Exchequer whether his attention has been drawn to the purchase of a large farm in South Northumberland by a co operative society; whether the produce of this farm will now compete free of all Income Tax against the produce of individual farmers, who pay double Income Tax on their 1643W rent; and, if so, is there any intention of altering the law to place co-operative and individual enterprise of this kind on an equal footing?
Mr. CHAMBERLAINThe answer to the first part of the question is in the negative. If my hon. Friend will refer to the provisions of Section 39, Sub-section (4), of the Income Tax Act, 1918, he will see that the exemption from Income Tax conferred upon co-operative societies within the scope of the Sub-section is confined to Schedules C and D of the Income Tax Acts, and does not afford relief from the tax chargeable in respect of the ownership or occupation of land.