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

332 SECRETARIAL PRACTICE times during the year will be saved. The secretary should take care to see that the return is comprehensive, as the responsibility is upon him, and bonuses, overtime and fixed all-round figure payments for expenses should be included. In the ordinary course dividends are payable ‘out of profits or gains brought into charge,’ and in this case prior to 1927-28, the rate of tax deductible was the average rate in force over the period in respect of which the dividend was paid, but under s. 39 of Finance Act, 1927, the tax to be deducted is the stand- ard rate for the year in which the amount payable becomes due. Where arrears of preference dividend are paid for previous years (prior to 1927-28), the rate of deduction is the average in force over the period during which the profits were made out of which the dividend is paid. Where payments of debenture interest are made that cannot be said to be out of profits or gains brought into charge, owing for instance, to a series of trading losses, and such interest is separately assessed [under Rule 21 (2) of the General Rules applicable to all Schedules, Income Tax Act, 1918], then the tax deducted should be at the rate in force at the time of payment. Explanation ~~ Every company within the meaning of the Companies of Tax Act, 192g—which means a company formed and registered Deduction to to ye be annexed under that Act or an ‘existing company (¢.e. formed and to Warrants. registered under the Joint Stock Companies Acts, the Com- panies Act, 1862 or the Companies (Consolidation) Act, 1908) —or a company constituted by letters patent or by or in pursuance of an Act of Parliament is required under s. 33 of the Finance Act, 1924, whenever it issues a ‘warrant or cheque or other order drawn or made, or purporting to be drawn or made after 30th November, 1924, in payment of any dividend or interest’ to annex thereto or to accompany it by a statement in writing showing the gross amount which, after deduction of the income tax appropriate thereto, corresponds to the net amount actually paid; and the rate and the amount of income tax appropriate to such gross amount; and (c) the net amount actually paid. Failure to comply makes the company liable to a penalty of £10 for each offence, but the aggregate amount of penalties under any one distribution of dividends or interest will not exceed £100. Deduction ol Tax from Dividends.

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