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Treasury Catches Tax Dodgers

6th January 1950, Page 35
6th January 1950
Page 35
Page 35, 6th January 1950 — Treasury Catches Tax Dodgers
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ikNEW Order designed to prevent the evasion of purchase tax on utility vehiclevhas been made by the

Treasury. It provides that any road vehicle, other than one specifically exempt from tax, which has to the rear of the driver's seat roofed accommodation fitted with side windows, or is constructed or adapted for the fitting of side windows, shall be liable to purchase tax under Group 35 (a) of the Tax Schedule.

The new regulation, known, as the Purchase Tax (No. 5) •Oder, :•• 1949, applies to vehieles_clelivere-d'on sale;or appropriated to Jetail trade or similar purposes, on and after July 1 next. •

The effect of 'the Order is that the presence of rear seats or of fittings for seats will no longer be the criterion of tax liability. • •

If side .windows can be fitted only by the use 'of facilities normally, found in a workshop, the vehicle will not be liable to tax. In vehicles with Wooden bodies;the upper side panels 'must not be easily . removable, but must • be mortised into the side training. .Panels in the sides of -metal bOdies. Must be integral parts. of .the. body presin.' Conyersien of, a .Vehicle not liable to purchase 'tax, into .one' that is, makes the person Who .ca."-rriA Out the alteration in the course of his ;husineis, liable,' under .the Finance ./c,t, 1946;._tp register as a .rnanufacturer of ebYrgeable goods. 'He must therefore account to the ,Commissioners for purchase tax on -the full value of the converted

vehicle. '

',The new Order does not affect. the charging of tax on vehicles constructed or. adapted solely, or mainly', for the carriage of passengers.