1. The main controversy at the present time in relation to the taxation of co-operative societies, centres round whether or not the sums placed to reserve by these societies should be subject to Income Tax. Before 1933 such sums placed to reserve were not taxed. In that year a Committee was appointed under the chairmanship of Mr. W. H. Raeburn to inquire into the matter and make what recommendations to the Government it thought suitable. The Committee recommended that moneys placed to reserve by co-operative societies should be taxed at the standard rate of Income Tax: and legislation was introduced into Parliament by the Chancellor of the Exchequer, Mr. Neville Chamberlain, giving effect to this recommendation.