TAXATION OF CO-OPERATIVE SOCIETIES
[To the Editor of THE Sr=Aron.] S1R,—Is not your Parliamentary Correspondent in error when he says that the Government's proposals for taxing the Co-operative Societies involve an undesirable innovation in Income Tax law—namely, assessment upon a corporate entity instead of only upon individuals ? Schedule D of the Income Tax Act taxes " persons " and it is common knowledge that companies and societies are taxed or exempted as "persons." Where, as in the provisions for super-tax and relief, it is not desired to include companies and societies, the word " individual "is used. Nor, I submit, is there anything illogical in taxing reserved profits and exempting the " divi." The " divi " is not a profit but a rebate, a trade expense. Surely, coupon prizes arc on much the same footing—a had footing in both cases, but the laconic Tax cannot- discriminate between trade expenses on moral grounds. Is not the -matter one of degree ? When the Co-operatives were poor am! struggling, exemption was expedient.-1 am, Sir, &c., Cade House, ficathfuld, Sussex. F. C. GATES.
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