Balancing Charges : Appeal Fails
Page 39
If you've noticed an error in this article please click here to report it so we can fix it.
AN appeal by Bramford's Road Transport, Ltd., against a balancing charge of 16,330 has been dismissed by the Special Commissioners of Income Tax. The Commissioners have given their decision on the principles involved and the figure is to be agreed by negotiation.
Bramford's argued that when on May 9, 1949, its business was compulsorily acquired by. the British Transport Commission, its road haulage business was, within the meaning of Section 17 (I) of the Income Tax Act, 1945, permanently discontinued. The company was, therefore, not liable to a balancing charge.
It was contended that the Commission did not succeed • to the trade of road haulage because immediately the business was taken over the position was radically altered, and the undertaking was amalgamated in the new • trade of a much larger and more complicated public undertaking. The Commissioners consider that Parliament took every precaution to ensure that under the Transport Act, 1947, the trade of acquired hauliers' businesses should not he discontinued before the relevant -transfer dates. They also find that after May 9, 1949, Bramford's trade went on much as before, at least until September 30 of that year, when it was amalgamated in a bigger unit of transport.
The name "Bramford's," for which the Commission paid, was used throughout this period. All the acquired vehicles, except two, were used on the same routes and carried for the same customers as when operated by Bramford's. It is held that Bramford's trade was not permanently discontinued before the company's assets were transferred to the B.T.C.
This was regarded as a test ease, and a fund was started by the Road Haulage Association to finance the costly proceedings of appeal.