MDC set to escape £1.5m tax trap
THE farmer-funded Milk Develop- ment Council may escape a potential tax trap which would have cost it £1.5m.
The latest indications from the Department of Trade and Industry and the Inland Revenue are that corporation tax will not apply to the MDCs operational surplus of £3.5m in 1995/96.
During that year, the MDC received a full years levy income, but costs were more than halved due to a new research and development programme being started from scratch. MDC had thought scientific research association status would mean exemption. The DTI proposed changes for non-profit research organisations during the year, raising the tax threat.
"We wait for confirmation that this issue has been put to rest," says chief executive Peter Merson. *