HC Deb 15 December 1927 vol 211 cc2517-8W
MR. CLAYTON

asked the Chancellor of the Exchequer whether he is aware that, pending the decision of certain cases before the High Court, the return of Income Tax to certain scientific societies hitherto regarded as charitable institutions is being withheld; and, as such action, especially in the cases of those societies which have annually to distribute funds for research purposes, is a hardship and one which must necessarily curtail research work carried out in our universities and university institutions, will he arrange to have these taxes refunded?

MR. CHURCHILL

Appeals to the High Court are pending against decisions of the Special Commissioners of Income Tax holding that two societies were not entitled to exemption from Income Tax as charities. These two societies, after discussion between representatives of a large group of learned and scientific societies and the Revenue authorities, had been taken as test cases. Unless these decisions of the Special Commissioners on appeal are reversed by the Courts, it would not be possible for the Inland Revenue to continue to make repayments of tax in respect of income of the general funds of other societies of the same character. If, however, my hon. Friend is aware of any cases in which relief has not been admitted in respect of income which is subject to a specific trust for application to research in a university or university institution, I shall gladly make further inquiry on being furnished with the necessary particulars.