Do You Pay Excess Profits Duty
Do You Pay Excess Profits Duty
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To complete the computation, let it be assumed that the Pre- War Standard of the firm has already been agreed at 20, 000 ; that the capital employed was increased on January I, 1917, by 5, 000 ; and that the profits in the first three accounting periods, adjusted in the same way as the profits of, 1917, were : 1914, 18, 000 ; 1915, 19, 500 ; 1916, 20, 000 ; then the liability to duty will, in accordance with the formula given on p. 9, be found thus : Profits of fourth Account Period after adjus...tment 28, 340 Deduct Interest at 1 1 per cent. P. A. On 5, 000 additional capital employed Deduct Pre-War Standard Fixed Allowance Excess Profits 20, 200 7, 590 COMPUTATION OF DUTY PAYABLE.
Year.
Profits. P. W. S.
Deficiency.
Excess.
Rate.
Set Off.
Duty.
Per cent.
1914 18, 000 20, 200 2, 200 50 1, 100 1915 19, 500 700 60 420 I9l6 20, 000 200 60 120 1917 27, 790 7. 590 80 6, 072 1, 640 Net amount payable two months after assessment . . 4, 432 6, 072 NOTE. Had the capital been reduced by 5, 000 interest at 7 per cent, per annum would be added to the profits.
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To quickly assess the difficulty of the text, read a short excerpt:
To complete the computation, let it be assumed that the Pre- War Standard of the firm has already been agreed at 20, 000 ; that the capital employed was increased on January I, 1917, by 5, 000 ; and that the profits in the first three accounting periods, adjusted in the same way as the profits of, 1917, were : 1914, 18, 000 ; 1915, 19, 500 ; 1916, 20, 000 ; then the liability to duty will, in accordance with the formula given on p. 9, be found thus : Profits of fourth Account Period after adjus...tment 28, 340 Deduct Interest at 1 1 per cent. P. A. On 5, 000 additional capital employed Deduct Pre-War Standard Fixed Allowance Excess Profits 20, 200 7, 590 COMPUTATION OF DUTY PAYABLE.
Year.
Profits. P. W. S.
Deficiency.
Excess.
Rate.
Set Off.
Duty.
Per cent.
1914 18, 000 20, 200 2, 200 50 1, 100 1915 19, 500 700 60 420 I9l6 20, 000 200 60 120 1917 27, 790 7. 590 80 6, 072 1, 640 Net amount payable two months after assessment . . 4, 432 6, 072 NOTE. Had the capital been reduced by 5, 000 interest at 7 per cent, per annum would be added to the profits.
What to read after Do You Pay Excess Profits Duty?
You can find similar books in the "Read Also" column, or choose other free books by T Frame Miller to read onlineMoreLess
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