Reg. No.

Name of Trade Union

TRADE UNION ACTS, 1871 AND 1876.

T. U. No. 2.

Annual Return of Change of Officers during the Year ending 31st December, 189 .

CHAPTER X.

THE TRADE UNION (PROVIDENT FUNDS) ACT, 1893.

THE object of this short Act, the 56 Vict. c. 2, was to place trade unions, having provision in their rules for provident benefits similar to those of a friendly society, on the same basis as friendly societies as regards exemption from income tax, under the Income Tax Acts. As I prepared the Bill, and got it through Parliament, I may explain that it would have been impossible to do so if its provisions had not been limited to provident funds. In this respect the Act as regards exemption is on the same lines as in the case of friendly societies.

The exemption is limited to registered unions for the same reason, the exemption in the other case being so limited. But this is not a disability, for a registered union has advantages under the Trade Union Acts, 1871 and 1876, which are not enjoyed by an unregistered union. The advantages of registration are manifold.

The exemption is restricted to the invested funds of the union, because its income from subscriptions is not subject to income tax any more than the income of a friendly society or charitable institution.

L

The term "provident benefits" is for the first time defined by this Act. Such a definition was found to be necessary by reason of the fact that disputes had arisen as to trade unions investing their funds in the savings banks, under the Savings Banks Acts, some having been refused the privilege of so investing, except on the same terms as a private individual. The definition covers all provident benefits of whatever kind provided for in the rules of trade unions. Thus the investments of such unions as the Amalgamated Society of Engineers, Carpenters and Joiners, Tailors, Ironfounders, Moulders, Blacksmiths, Boilermakers and Iron Shipbuilders, Railway Servants, and others of a like class will be exempt, as will also those which only pay partial benefits, such as funeral benefit. But a society having no provident benefits whatever is not included, and registration is essential, in all cases, in order to come within the provisions of the Act.

"Exemption" must be claimed, as in the case of friendly societies, industrial and provident societies, and the like; and as the Act covers all interest and dividends payable on balance in the bank, on shares and stock, notice of exemption should be given to the bank, corporation or company, that it is the intention of the society to claim exemption from income tax under the Act. If the Inland Revenue Commissioners insist upon an account, the proportion of provident benefits to strike pay during the three preceding years will in most instances be sufficient to indicate the amount upon which income tax is payable, if demanded.

The Boilermakers and Iron Shipbuilders' Society

claimed under this Act in 1894, and the Government refunded the amount of £77 11s. 5d. on their investments from April 1st, 1893, to March 31st, 1894, in various securities, and also the income tax payable on their new offices at Newcastle-on-Tyne.

TRADE UNION (PROVIDENT FUNDS) ACT, 1893. [56 VICT., CH. 2.]

An Act to exempt from income tax the invested funds of trade unions applied in payment of provident benefits. [March 28th, 1893.]

Be it enacted as follows:-
:-

funds of trade

(1.) A trade union duly registered under the Trade Provident Union Acts, 1871 and 1876, shall be entitled to exemption from income tax chargeable under unions to be

Schedules A., C., and D., of Acts for granting exempt

any

from induties of income tax in respect of the interest come tax, and dividends of the trade union applicable and 33 & 34 applied solely for the purpose of provident 39 & 40 benefits.

Provided always that the exemption shall not extend to any trade union by the rules of which the amount assured to any member, or person nominated by or claiming under him, shall exceed the total sum of two hundred pounds, or the amount of any annuity granted to any member or person nominated by him, shall exceed the sum of thirty pounds per annum.

Vict. c. 31,

Vict.c. 22.

(2.) The exemption shall be claimed and allowed in the Mode of claiming same manner as is prescribed by law in the case exemption. of income applicable and applied for charitable

purposes.

(3.) In this Act the expression "provident benefits" Definition of "provimeans and includes any payment made to a dent benemember during sickness or incapacity from fits." personal injury, or while out of work; or to an aged member by way of superannuation; or to a member who has met with an accident, or has lost

Short title.

his tools by fire or theft; or a payment in discharge or aid of funeral expenses on the death of a member or wife of a member, or as provision for the children of the deceased member, where the payment in respect whereof exemption is claimed is a payment expressly authorised by the registered rules of the trade union claiming the exemption.

(4.) This Act may be cited as the Trade Union (Provident Funds) Act, 1893.