Appeal Decisions Cut Tax on Compensation
Page 36
If you've noticed an error in this article please click here to report it so we can fix it.
ANOTHER tax battle was won by the Road Haulage Association last week, this time on behalf of hauliers whose businesses were
nationalized under the Transport Act, 1947. The Association sponsored two appeals to the Special Commissioners of Income Tax and won both. As a result, many hauliers may have to pay far less tax than was expected on sums awarded in compensation by the British Transport Commission.
London Round for Drivers' Contest
STEPS were taken on Monday to establish London's first eliminating round in the Lorry Driver of the Year Competition. It will be promoted by Stepney Road Safety Committee, on the authority of the borough council.
Mr. P. J. Turner, of Thos. Allen, Ltd., who presided at the inaugural meeting, said that many important operators were interested in setting up a local centre, which would have the active support of the Road Haulage Association. The R.H.A. would probably award a trophy for the all-out winner. The Traders Road Transport Association are being asked to organize a maintenance competition in conjunction with the event.
There was no shortage of volunteers for a committee to launch the round. They were the Mayor of Stepney (Mr. 3. F. Calnan), Mr. E. Chandler (road safety officer), Mr. R. Waite (secretary of the committee), Mr. H. C. Younge, Mr. J. P. Wells, Mr. H. H. Crow, Mr. W. R. Townsend, Maj. F. W. Firminger (Royal Society for the Prevention of Accidents), and a nominee each from the T.R.T.A. and S.P.D., Ltd. Mr. A. E. Sherlock-Mesher (The Commercial Motor) and Mr. E. K. Werdock (Motor Transport) agreed to act as advisers.
The first task—and a difficult one—is to find a site for the tests. The possibility of using Victoria Park is one of the suggestions being investigated.
DRIVERS' PAY INCREASED IN agreement with the Transport and General Workers' Union, British Oxygen Gases, Ltd., have increased the basic rates for transport workers by 13s. a week, and the night allowance by 4d. an hour.
The Co-operative Wholesale Society's transport agreement has been amended to include a 15-18-ton category, for which the wages are £10 14s. a week in London and £10 Is. in the provinces.
SECURITY DEVICES ON SHOW
A N exhibition of security devices is to
be staged by the vehicles security committee of the Road Haulage Association in London on Tuesday morning. It will be held at the Millwall depot of J. Spurting, Ltd. About 15 vehicles are expected to be available for inspection by members of the committee and technical experts. The committee will meet in the afternoon.
n30 The Commission were required to compensate the owners of acquired businesses in accordance with a formula prescribed by Section 47 of the Act. In an earlier test case it was decided that in transactions of this kind there was no sale within the meaning of Section 17 of the Income Tax Act, 1945, and, therefore, balancing allowances or charges fell to be assessed on the basis of openmarket value under Section 60 of that Act.
Balancing charges were assessed on the assumption that the compensation paid by the Commission for vehicles was in fact their market value at the date of acquisition.
It was this principle that the R.H.A. successfully challenged last week. It was argued that a price fixed by a formula could not possibly be open-market value, and that some figure other than the compensation received for the vehicles must be taken for taxation purposes.
The Special Commissioners of Income Tax upheld the R.H.A. view that compensation for vehicles was not to be regarded as open-market value. They determined this value by reference to an independent valuation, having regard to the market conditions existing at that time. They arrived at amounts totalling, in one case, the equivalent of just under a quarter of the aggregate compensation paid for the vehicles. In the other instance the figure was just over half the compensation received. This case may, however, go to the High Court.
MI BAN IMPOSED: SAFEGUARD FOR DRIVERS
DRIVERS of Marley Tiles, Ltd., Sevenoaks, Kent, have been forbidden to use the Ml because the hard shoulders are considered to be a menace.
Mr. V. Dugay, transport manager, told The Commercial Motor last week that he had imposed the ban after reading reports of vehicles which had pulled on to the shoulders and sunk into the ground.
He was also perturbed about what would happen if an eight-wheeler ran on to the shoulder when taking emergency action to avoid another vehicle.
"We want to safeguard our drivers against the carelessness of other road users," he said.
The M1 had been used without mishap by the company when it was first opened, but drivers had now been told to keep to A5. About 100 heavy vehicles are sent along this route every week.