Advance corporation tax: strangling the multinationals
Article Abstract:
UK companies are protesting against the burdensome advance corporation tax (ACT). Some say ACT is discriminatory because it burdens some types of companies more than others. Because ACT relief is generally limited to corporations making profits in the UK, British firms whose profits come mainly from their overseas operations pay more taxes. Currently, these firms are estimated to account for 40% of all UK listed companies. The ACT also affects corporate financing decisions because it increases the cost of dividends and, consequently, to cost of raising funds from stockholders. In addition, the tax discourages internationalization of British industry. A number of tax avoidance strategies have emerged to resolve the tax problems associted with ACT, although some of them are dubious. UK industrialists as well as government agencies are urging the Chancellor of the Exchequer to address the ACT problem.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1993
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Time to abolish the big company audit?
Article Abstract:
The easing of rules covering the small company audit has been welcomed by the accounting profession as a welcome step towards the deregulation of the UK audit system. The next step in the process should logically be the extension of the relaxation of rules to the big company audit. Such a step would be in the public interest since it would allow large companies to enjoy the same privilege as their smaller counterparts in that they would have a choice on whether or not to undertake an audit at all. The provision of such a choice to large companies would not undermine the public interest since most companies regardless of size would make their decision on the basis of a cost-benefit analysis. As such, companies would consider it necessary to conduct an audit only when the possible benefits actually outweigh the audit costs incurred.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1995
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World class financial controls
Article Abstract:
Imperial Chemical Industries (ICI) Finance Dir Colin Short oversees the conglomerate's controller department, its tax, treasury, auditing, and investor relations operations, and its information systems. Short serves as one of nine executive directors on the main board of ICI, which is responsible for the strategic planning for the group. The controller's department monitors the budgeting system and prepares financial reports that are disseminated to members of the board on a monthly basis. The tax and treasury functions of the group are centralized in order to coordinate tax planning and investment activities.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1991
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