Secretarial practice

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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

INCOME TAX 325 assessment itself; but the usual practice is to take the value of the machinery and plant as existing at the last balance sheet, and to calculate the allowance at the rate agreed for a year, as equivalent to the allowance for the exact year of assessment, without generally speaking, any addition or deduction for plant acquired or given up during the year of assessment. With most companies allowances are computed on the ‘written down’ value of the asset, all pure renewals, as distinct from repairs, being added to the capital value and not charged against revenue. If the assessment in a given year is not large enough to cover the whole allowance due, the balance can be carried forward into a future year. As a general rule, if renewals are allowed to be charged against revenue (vide 5 above), no wear and tear allowances are given in respect of that class of plant. There remain some further matters likely to cause dis cussion :— I. Profit on Realisation of Assets. Profits of a capital Other nature need not be brought into the liability, just as, in the Adjustments. same way, expenses of a capital nature are not allowed as an expense, but in the case of a company with wide articles of association there may be some difficulty in establishing that particular profits are of a capital nature, although as regards an occasional realisation of investments for an ordinary trading company the claim would be admitted without question. 2. Charities and Donations. While a large amount of money is often given in charity by the directors of a limited liability company (especially where the capital or, in par- ticular, the ordinary shares are held privately) which it must be admitted is not a proper charge against the business, there are other donations and subscriptions to which the same considerations do not apply, as for example, sub- scriptions to a charity or hospital, to which the company’s employees are admitted if in ill-health. As a general rule any expenses which benefit the workpeople and may be regarded as a general addition to wages are allowed. 3. Trade subscriptions. Subscriptions to trade associa- tions are now admitted if associations have entered into an arrangement to pay tax direct on any excess of their receipts over their admissible expenses. The net effect of this arrange- ment is that tax on that part of the subscriptions which represent expenditure not admissible is collected in one sum from each association instead of from the individual members. 4. Law Charges incurred otherwise than in the collection

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