References 60178/GHH, T1388/15/42
Secretary, Taxes.
The liability of the Publishing Department of the above Press is dealt with in this District.
A claim to exemption from Income Tax Schedule D under Section 30(1)(c) Finance Act 1921 in respect of the Printing (dealt with at Cambridge) and the Publishing Departments was submitted and refused. An appeal was made to the Special Commissioners who upheld the refusal. I was notified of the decision in April, 1941.
Meanwhile the examination of the 1938 and 1939 accounts and determination of liability arising thereon had been deferred, but on 4.3.1940 notice of a Section 34 claim for 1938/39 was lodged. Subsequently viz: on 4.3.1941, application was made to Cambridge 1 for a set-off of losses of the Publishing Department for both 1938-39 and 1939-40 under Rule 13 against profits of the Printing Department.
Application is now made to withdraw the Section 34 Notice for 1938-39. It is stated that the notice was protective only with a view to claiming repayment on any small amount of taxed income received by the Publishing Department, and not with any intention of claiming the loss against the profits of the Printing Department or other taxed income of the Syndics by whom the Press is conducted. The two Departments have hitherto, it appears, been regarded as separate entities although they are part of one whole and the claim to exemption above referred to it was conducted on behalf of the Press as a whole.
The effect of the change in the rate of tax for 1939-40 as compared with 1938-39 makes the matter material. The loss is approximately £3,000 which could be wholly repaid under Section 34. If allowed under Rule 13 the relief will be at 7/- in the pound against 5s. 6d. under Rule 34.
I attach a letter from the Accountants acting for the Press.
Euston District,
5th March, 1942.