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

INCOME TAX LT The Dominion rate of tax in respect of which relief is granted is, according to the Act, that paid for the Dominion Income Tax year corresponding with the British year in which the income is taxed. The rate of relief allowable is not a fixed rate, but is deter- mined under the Act as follows: — (a) if the Dominion rate of tax does not exceed one-half of the appropriate rate of United Kingdom tax, as defined by part II (2) of the 5th schedule to Finance Act, 1927, the rate at which relief is to be given shall be the Dominion rate of tax. in any other case the rate at which relief is to be given shall be one-half of the appropriate rate of United Kingdom tax. In the case of a company chargeable to United Kingdom income tax on the whole of its profits, relief, calculated by reference to the standard rate of United Kingdom income tax, is allowable to the company in connexion with its schedule D assessment. The rate of United Kingdom income tax deductible from dividends by a company obtaining relief is the rate as reduced by the relief granted to the company. This applies equally to dividends on preference shares and ordinary shares (Sheld- rick v. South African Breweries (1923), 1 K.B. 173; see also Gold Fields, etc., Co., v. Consolidated Gold Fields, etc., Ltd. (1926), 1 Ch. 338). In the case of tax-free dividends of British Companies the ‘gross’ amount of the dividend is arrived at by writing up the dividend by reference to the reduced rate of United Kingdom income tax applicable only. In the case of a company not chargeable to United Kingdom income tax on the whole of its profits, shareholders should in strictness claim relief by way of repayment; but, where such companies have paying agents in this country, the relief is usually granted to shareholders by deduction of United Kingdom income tax from their dividends at a rate less than the standard rate. In order to make this procedure possible, the Inspector of Foreign Dividends, York House, Kingsway, London, W.C.2, on application by the paying agent, author- ises a rate of relief based on the full standard rate of United Kingdom income tax and issues a specimen form of counter- foil containing an explanatory memorandum. Where a company obtaining relief has paid Dominion income tax at a rate in excess of half the standard rate of United King- dom income tax, and is not entitled to repayment under the

Access restriction

Copyright

fullscreen: Secretarial practice

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation