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

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

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

Collection:: Economics Books

326 SECRETARIAL PRACTICE of trade debts, are frequently challenged, and where they are actually incurred for the purpose of acquiring assets they are not allowed. The expense of issuing debentures is not allowable [Texas Land and Mortgage Co. v. Holtham (1894), 10, T.L.R. 337], and a bonus payable on a repayment of borrowed money is also not allowed [Arizona Copper Co. v. Smiles (1891), 29 Sc. L.R. 134]. Legal expenses incurred in defence of existing rights are admitted. 5. Losses on Closing Factories and removal expenses are not allowable according to High Court decisions, but as a matter of practice, where removal expenses are compulsory, no objection is usually raised to the cost of removal. In any case the expenses of removing trading stock are allowed. 6. Bad Debts in respect of cash advances which have not been made for trade purposes, are not allowed. It is obvious that the question of what are ‘trade purposes’ must be decided in each case. v7. Exhaustion of Nitrate Grounds. The exhaustion of natural assets like nitrate deposits. mineral seams and so on, is not recognised. 8. Foreign taxation is allowable as a deduction. In view, however, of the provisions for allowance of relief in respect of Dominion Income Tax, such taxes must be added back wholly or in part according as the law of the Dominion provides for reciprocal relief, see Finance Act, 1920, s. 27 (4). 9. Sums allocated to reserve funds generally are not allowed, whatever the object may be, for they are considered simply as an appropriation of profits. Generally speaking, the contingency provided against will be allowed as and when it arises if it comes within the provisions of the Acts. For example, amounts set to a bad debt reserve would not be allowed, but the actual sums charged to that account during the year would be allowed instead. There is a provision for allowing an estimate for specific doubtful debts, but in practice this is frequently not claimed. In the long run it makes no difference, as debts are fully allowed to the extent to which they become bad. Relief in 10. Relief from United Kingdom income tax can be claimed Respens of in respect of Dominion income tax. This relief was first Income Tax. granted under the provisions of s. 43 of the Finance Act, 1916. The whole position was, however, reviewed by the Royal Commission on the Income Tax; and, following a recom- mendation in the Commission’s Report, the Finance Act of 1920 [s. 27] made new and more complete provisions.

Access restriction

Copyright

fullscreen: Secretarial practice

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation