HOW MUCH TO PAY?

Waikato Times, Volume 119, Issue 19894, 25 May 1936, Page 7

HOW MUCH TO PAY?

PUZZLES IN INCOME TAX. A VALUABLE SERVICE. "One of the most valuable services of the chartered accountant is his help in matters or income tax." I‘9marked the president of the Bradford Chamber of Commerce at a. meeting or the Bradford 50cm;- or Chartered Accountants. “In that regard there is no doubt ‘.he puts many a business man on a sound footing-41nd there is equally no doubt that many a 'buflness man needs it.“ Some comment on that matter was made by Mr R. N. Carter, vice-presi-n dent of the English Institute of Chartered Accountants. “I feel." he said. “I cannot pass the suggestion made by Professor Jones, of Leeds University—-namoiy, that accountants should not use their skill. to defeat the Inland Revenue authorities on technical grounds. The subject has Various aspects, but each ,0: these aspects ‘leads me .to the same_.view. Assume it to be morally wrong—— though, as a matter >0! fact. the Judges have said it is not—for anyone to take advantage of loopholes in the Acts; then it we disoountenance it the evil may be so small that it is not worth a special provision in the Finance Act to deal with it and the unscrupulous ‘get away with it.‘ If. however, we as a profession support it. than it becomes an important matter and, it unfairness exists, it is dealt with by legislation. Again, it a client roads of it in the Daily Hooter, he calls on his accountant and asks if the accountant knows his business, and if so. why has he not named it toi him. leaving him to decide for himself whether he will incur the obloquy —ii any—-whioh such action may suggest to carry, with it. If he hears from a friend that the friend‘s aooountant has told him of it, his inquiry is whether his own accountant is as interested in him as his friend's aocountant is in the friend! But finally. speaking of it on the lowest level, we have our living to make, and must we neglect those opporiunities of making friends or our clients? Must not counsel, asked to defend a prisoner, give his client every possible ,chance or escape from the clutches of the law? Can he possibly say to himself, ‘ch, i see a technical point which would secure acquittal but the man seems to have done with the suggestion or not disclosing doubtful items in rendering accounts. There cannot be two opinions as to the impropriety ot such a course." Tax Dodging Societies. The president or the Bradford Society said he would like to refer to the existence or what he might call “Tax Dodging Societies," which were formed to assist taxpayers to avoid payment of taxes, by way or the vari—ous [loopholes in the Finance Acts arising through omissions or bad draftsnmnship. .\‘umerous bright in—dividuals suddenly discovered a loop—hole in the Act which enabled an ad—vantage to be obtained which was never intended by the Revenue. it appears to be impossible to legislate for all the contingencies which might arise. This was shown hy illc innumcrshie rusrs which had to be aicnhiod every year before the Courts. Sic \\uuhi urge ihr Visitors of oihrr pru~ fess-ions or ii‘mlrs to refer all such mul— Im's 1n iln'ir accountant. who know his job .'lllil \\ouiii sm: that his ('iimll dill not pay more than \\us his proper iilh‘.