Kinematograph year book (1935)

146 The Kinematograph Year Book. the performance in the seat for which it has paid, provided, of course, that it behaves itself. If the exhibitor, in order to protect himself under his licence, requests the child to go out, he may be open to an action for damages ; if he allows it to remain, he may jeopardise his licence. I think he should protect himself as far as possible by having some condition put on the ticket reserving the right to the management to remove any child unaccompanied during the showing of an " A " film. To me it seems a very unreasonable condition, but whether it is ultra vires or not perhaps some day the Courts will decide. Until then, in my opinion, the exhibitor, for the reasons mentioned, is placed in a very invidious position. * * * Another point which appears to have caused a certain amount of consternation in the minds of the exhibitors is their position under a Hiring Agreement where the Inland Revenue officials refuse to regard payments under Hiring Agreements of certain sound equipment as allowable expenses. The question to be considered is : (a) Is the Hiring Agreement a pure and simple Hiring Agreement ; or (b) is it a hire-purchase agreement ? If the hiring comes under (a) then the payments made under it can be set off against revenue. If it comes under (b), that is to say, if it contains a clause giving the hirer the right to purchase the apparatus at some time or other, then, as the position stands to-day, such payments are not allowed to be set off against expenses, but must be treated as a capital expenditure. I would point out that, if the money has been paid for the option, it is a sale of the option. The mere fact that the option is not exercised does not alter the position of it being a complete and final sale. The option can only be exercised, generallv speaking, if all the money due has actually been paid. * * * The last matter which I propose to deal with is the position of a person buying another theatre and as to how he stands as regards the payment of Income Tax under Schedule D. Is it to be treated as a new business or a " succession " ? Section 32 (2) of the Finance Act, 1926, states, " If at any time after the 5th day of April, 1928, any person succeeds to any trade, profession or vocation, which until that time has been carried on by another person and the case is not one to which paragraph 1, Section 32, applies, the tax payable for all years of assessment by the person succeeding as aforesaid shall be computed as if he had set up or commenced the trade, profession or vocation at that time, and the tax payable for all years of assessment by the person who until that time carried on the trade, profession or vocation, shall be computed as if it had then been discontinued." There have been several important decisions given during the year 1934. It was made quite clear in cases where the ruling of the Inspector of Taxes was not agreed with and the case was referred to the Special Commissioners, that each case brought before them will be dealt with on the " facts " and that no definite principle will be laid down. This means that as their decision is given on the facts put before them in each particular case and not on a point of law, an appeal to a Higher Court would be of little use, and the party affected would have to abide by the decision of the Special Commissioners. STILL DISPLAY FRAMES AND SERVICE COMPLETE from GIROSIGN Ltd., 90, Wardour St., W.I Phone: GERRARD 3526-3527.