§ Mr. A. Edwardsasked the Chancellor of the Exchequer whether there is any special arrangement under which British steel companies make contributions to a special fund for the industry instead of paying Excess Profits Tax.
§ Sir J. AndersonI assume that my hon. Friend is referring to the fund known as the Iron and Steel Special Fund. As he may know, there is a question of disposal to the Exchequer of the balance in this Fund which is still unsettled, but meantime, in arriving at their tax liabilities,1060W members of the particular trade association concerned are allowed to deduct contributions to this fund, but only under conditions which apply to all other traders, namely, that the association undertakes to pay tax on the contributions received by it, less any expenditure which would be allowable in computing the tax liability of the individual members if the expenditure had been incurred directly by them. The arrangements, therefore, involves no loss of revenue.