CIMA avoids tax on surplus, reports Phillip Inman.
CIMA successfully avoided paying tax last year after it channelled all its surplus cash into the institute’s own educational trust.
Members congratulated the institute’s executive for saving thousands of pounds in tax payments during Saturday’s agm, when the financial accounts for 1997 were presented.
The accounts revealed a hike in contributions to the institute’s charitable trust from #470,000 to #655,000 – a rise of nearly 40%. A spokesman for the executive said all the institute’s excess funds were transferred to a charitable trust and then switched into its educational trust account, ‘and that is why there is no charge for taxation in the accounts’.
CIMA’s income rose from #16.4m to #18.5m, creating an operating surplus of #268,000. Outgoing president Norman Lyle told members CIMA faced increasing costs – rising from #15.9m to #18.2m – but said it was a ‘victim of its own popularity’. The number of members and students grew to 109,121, an increase of nearly 6,000.
Lyle also said the institute took a significant step when it signed up to proposals for a profession-wide regulator, the Review Board, and in particular its Ethics Standards Board.
‘We have a duty to ensure accountants working outside the regulated areas adhere to high ethical standards,’ he said.