Coop Not Affected Of Company Tax Of Corporate Tax

Pending Congressional tax increases aimed at cooperatives are not likely to affect the Harvard Coop or its patrons, Austen W. Scott, Dane Professor of Law and a member of the Board of Directors of the Harvard Cooperative Society, explained yesterday.

The new tax bill, now in conference, would hit tax-exempt co-ops such as certain farmers' groups. The Harvard Coop, however, has never been tax-exempt and thus would be unaffected by the pending legislation. It would merely continue to pay taxes on its net income.

Since Coop patronage refunds represent a refund of personal expenses they would, as in the past, not be subject to taxation. The new law would require the Coop to report to the Treasury on all patronage dividends of $100 or more.