Secretarial practice

Bibliographic data

Monograph

Identifikator:: 1828236004

URN:: urn:nbn:de:zbw-retromon-249926

Document type:: Monograph

Title:: Secretarial practice

Edition:: fourth edition

Place of publication:: Cambridge

Publisher:: W. Heffer & Sons Ltd

Year of publication:: 1930

Scope:: viii, 987 Seiten

Digitisation:: 2022

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter XXVI. Income tax in its application to trading companies

Collection:: Economics Books

Period of Accounts. Computation of Income Tax Profit. 322 SECRETARIAL PRACTICE the inspector, on receipt of the accounts, will send in a number of ‘queries’ and fuither requirements, and when these have been satisfactorily replied to he may forward a computation of liability and ask whether the company is in agreement. On agreement the secretary will be in a position to complete the formal return when Form I. or Form IA. is received. It is not much use completing this form until the figures are actually agreed, except in the case where the computation is being contested on appeal, when the liability as desired by the company should be shown on this form. The Revenue looks to the completion of this statutory return as the formal act of responsibility by the company, notwithstanding all the anterior or auxiliary correspondence that may have taken place. For computing liability in established businesses for any financial year beginning on the 6th April, the last completed accounts prior to that date (e.g. 31st March or 31st December) are taken. Until the year 1927-28, it was necessary to take sufficient earlier accounts to make up in all three years (except for mines where a five years’ basis, and railways, and other specified concerns where one year, was adopted). The liability was the average for one year of the adjusted profits of the whole period. By the Finance Act, 1926, mines were transferred to Schedule D and the liability under Schedule D was to be assessed on the profits or gains, or income of the year preceding the year of assessment instead of on the average for one year of the adjusted profits of the three years’ period. These provisions first became operative for the year 1927-28. If the business was commenced in the year preceding the year of assessment, the profits of one year from the com- mencement thereof are taken, and if it is commenced within the year of assessment a computation is made either on the full amount of the profits arising in that year or according to an average of such a period not being greater than one year as the case may require and the Commissioners direct. In computing liability it is convenient to commence with the net profit carried into the balance sheet, and to go through the expenditure and add back all sums not allowable, and then make deductions for items allowable but not already charged in the accounts in getting at the net profit adopted as the starting point. ADDITIONS TO TRADING PROFIT (1) All book-keeping ‘rents’ for premises occupied for the business and owned by the company, all ground rent, lease rents and other charges issuing out of such property.

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