HOW MUCH TO PAY?

Nelson Evening Mail, Volume LXX, 21 May 1936, Page 5

HOW MUCH TO PAY?

PUZZLES IN INCOME TAX “One of the most valuable services of tbe chartered accountant is bis help in matters of income tax,” remarked tbe president of the Bradford Chamber of Commerce at a meeting of the Bradford Society of Chartered Accountants. “In that regard there is no doubt he puts many a business man on a sound footing—and there is equally no doubt that many a business man needs it.” Some comment on that matter was made by Mr R. N. Carter, vicepresident of the English Institute of Chartered Accountants. “I feel,” lie said, ”1 cannot pass the suggestion made by Professor Jones, of Leeds University—namely that accountants should not use their skill to defeat the inland revenue authorities on technical grounds. The subject has various aspects, but each of these aspects leads me to the same view. Asume it to be morally wrong—though, as a matter of fact, the judges have said it is not—for anyone to take advantage of loopholes in the Acts; then if we discountenance it the evil may be so small that it is not worth a special provision in tbe Finance Act lo deal with it, and the unscrupulous ‘gel away with it.’ If, however, we as a profession support it, then it becomes an important matter and, if unfairness exists, it is dealt with by legislation. Again, il a client reads of ft in the 'Daily Hooter,’ be calls on his accountant and asks if the accountant knows his business, and if so, why lias lie not named it to him, leaving him t 0 decide for himself whether he will incur the obloquy—if any—which such action may be suggested to carry with it. If he’hears from a friend that the iriend s accountant lias told him of it, bis inquiry' is whether bis own accountant is as interested in him as lus friend's accountant is in tlie iricuu . finally, speaking of if on the lowest level’ wc lia\ e our living to make, and must wc neglect those opportunities « mukiii" friends of our clients? Must not counsel, asked to defend a prisoner, give Ins client every possible chance of escape from the clutches ol the k.tjv. Ckm lie possibly say lo himself, les, 1 see a technical point which would secure acquittal but the man seems to have done t lie deed and should suffer the penalty therefor?’ I do not deal with the suggestion of not disclosing doubtful items in rendering accounts. There cannot be two opinions as to tbe impropriety of such a course.” The president of the Bradford Society said lie would like to refer to the exist-

ence of what be might call “Tax Dodging Societies,” which were formed to assist taxpayers to avoid payment of taxes, by way of the various loopholes in the Finance Acts arising through omissions or bad draftsmanship. Numerous bright individuals suddenly discovered a loophole in tbe Act which enabled an advantage to be obtained which was never intended by the revenue. It appeared to be quite impossible lo legislate for all contingencies which might arise. This was shown by the innumerable cases which bad to be decided every year before the courts. He would urge the visitors of other professions or trades to refer all such matters to their accountant, who knew his job and would see that his client did not pay more than was his proper due.