asked the Chancellor of the Exchequer (1) whether in any cases a charitable trust is used by a limited liability company to obtain remission of taxation on gifts given by the company for charitable purposes;

My right hon. Friend is not aware of any case in which a company has created or used a charitable trust for the purposes suggested by the hon. Member in his first Question. With regard to the exemption from Income Tax allowed to a charitable trust, he is informed that the Inland Revenue authorities assure themselves, in the first place, by examination of the documents establishing the trust that it is properly constituted for charitable purposes, and of course they obtain evidence by way of vouchers or otherwise showing the title of the trust to the income received by it and showing that the income has been taxed. Before repaying tax the authorities similarly require to be satisfied as regards the application of the income of the trust, but I may point out that the disbursement of the moneys of the trust in accordance with the terms of the trust is a legal duty which rests on the trustees and it is no part of the duties of the taxation authorities to supervise the administration of charitable trusts. Their duty is to satisfy themselves in connection with any claim to repayment of tax made by a charitable trust that the account of the trustees' expenditure is supported by proper evidence in the form, for example, of certificates by persons acting in an official capacity on behalf of a charity that the sums paid to them by the trustees have been or will be applied for charitable purposes.

Is the right hon. and gallant Gentleman aware that many of these trusts are issued through vouchers, as they are called, under which the money is supposed to go to certain legitimate charities but, in fact, goes to purposes other than charities; for instance, that loans for private persons are used for the purchase of goods and not for charity? What steps are being taken to stop this practice?

I am not aware of these facts. I have explained to the House what is the present position, but if the hon. Gentleman has any specific case he would like to send me, I will be glad to look into the details.

Is the Financial Secretary aware that I have already sent a large number of cases to the Chancellor of the Exchequer and that others are under investigation? I am asking what steps are being taken to stop it.