COMP ANY MEETING
INCORPORATED ACCOUNTANTS
-- - AT the annual general meeting of the Society of Incorporated Account- ants held on May 23rd, 1940, the President, Mr. Percy Toothill, F.S.A.A., said: I have pleasure in proposing the adoption of the report and accounts for 1939.
Before the outbreak of war, the Society was asked to co-operate with the other princilal oodies in helping to form an accountancy section of the Central R:gister. A very large number of members of the pro- fession intimated their willingness to consider the offer of whole-time or part-time Government work in their professional capacity. So far the Register has not been used for part-time appointments—in many
ways that is, I consider, a pity—but a considerable number of full- time appointme its have been made. The Society has supplied its quota of members for these appointments. I thank them for their response to the Government's request, and Mr. Walter Holman for his able representation sf the Society on the Committee dealing with the matter.
The Government, by lowering the reserved age of accountants from 30 to 25, have recognised the essential part played by our profession in present conditions and the necessity of keeping the staffs of firms at an efficient level.
It was decided soon after ale outbreak of war that it would not be desirable to hold the Society's examinations in the large urban centres in England and Wales. They were held last December, some weeks after the usual dates, at Taunton School in the South and at South- port in the north and the arrangements were entirely satisfactory. In view of the present intensified phase of the war, I am sure you will agree with the Council's decision, made some time ago, to arrange centres outside me large towns for the next examinations also. These are to be held at the end of July and beginning of August.
So far as the income-tax on private incomes is concerned, our pre-
sent system app. ars to me to mislead in a serious fashion. When in- come-tax goes up from 5s. 6d. to 7s. 6d., the man in the street has it engraved on his mind that he nays 2s. in the k more in taxes. But in fact the effective rate to which he is chargeable has in the great majority of instances, as we well know, risen by only a part of the increase in the standard rate. I therefore suggest that the Chancellor could with advantage reformulate the basis of income-tax on personal incomes, so that the stress would be placed upon effective rates and not the standard rate.
CONTROL OF CONTRACT PRICES Accountancy circles during the past year have continually stressed
the extreme need of avoiding waste. One particular direction in which this thesis can still bear further emphasis concerns the pricing of Government contracts. I am convinced that control at the source of profit-making, that is, in the initial contract prices, is preferable to extremely high taxation after the profits have been made. But for such control to be completely efficient, I am also convinced that the accountancy profession must be drawn into whole-hearted co-operation with the Government. Much can be done by Government officials, who have shown a praiseworthy zeal and self-sacrifice, and the pro- fession itself has provided a considerable number of recruits to Government departments on the accountancy side. But the process must not go too far. I therefore appeal to the authorities in the strongest terms to call upon the accountancy profession, as a pro- fession, to act in these matters. They will not find us wanting. It is also important to note that the nation as a whole will benefit if accountancy firms are kept, as far as possible, intact, consistent with the needs of the fighting forces, and are not unduly depleted by recruitment to Government departments.
In conclusion I thank my colleagues on the council and the
officers of the branches and district societies at home and overseas for their whole-hearted co-operation in dealing with the unprecedented problems which have fallen to the society. I sincerely hope that next year we shall meet under happier conditions. Meantime I pledge the society's organisation and its members to the most loyal support of the Prime Minister and H.M. Government in the great tasks which fall to the country and its Allies.
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