PTE tax 'adjustment' can save Elm annually
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• By establishing a subsidiary company, Sonella Motors Ltd, SELNEC PTE is likely to save itself more than Lim a year in taxation, beginning in the early part of 1974. The adjustment means that the PTE is purchasing all assets of the subsidiary, subject to accelerated wear and tear allowance on vehicles. One of the purposes of this is to create a benefit for the revenue accounts by virtue of a receipt in a subsidiary through group taxation adjustments.
At the recent annual meeting of the PTA in Manchester, Mr D. Graham, SELNEC finance director, said that the Sonella company would eventually be renamed SELNEC Transport Services Ltd. All new buses and other plant and machinery could then be sold by the PTE to the new company which in turn could lease them back.
In answer to questions as to whether the
move could be described as a "fiddle", Mr Graham explaned that so long as precepts were made on local rates the PTE was bound to be in a tax loss situation. Setting up another company would release additional revenue from tax allowances which could be used to improve SELNEC services. Everything had been checked with the Inland Revenue authorities and he assured delegates that such a move would not disqualify SELNEC from obtaining the normal DoE bus grants. The full PTA meeting unanimously approved the move.
Seaside coin counters
• Eastbourne and Lowestoft corporations have ordered Scan-Coin automatic sorting and counting machines from Automaticket. The machines will help with the influx of small coinage on the buses during the summer season.