Cooking the books, 12/11/99 (original) (raw)
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Front-page lead story by Christina Stokes and Caroline Duffy, Cherwell (Oxford University student paper), 12th November 1999
Oxford University Press has denied claims that in transferring millions of pounds to the University it was in breach of its tax-exempt status.
The claims, made by Andrew Malcolm in his book The Remedy, attack the tax-exempt status of the OUP. The book argues that this was granted to the OUP on the condition that "any surplus it makes is ploughed back into unprofitable publishing like poetry and music" and "that it does not fund the University". It then alleges that the OUP has funded the University to the tune of £10 million a year, and has "amassed for it an undisclosed further fund of £130 million".
Andrew Malcolm told Cherwell,"The Oxford University Press makes huge profits and in terms of tax exemption it should plough them back into publishing, not pass them on to the University."
However, Caroline Pailing, Public Affairs Manager of OUP repudiated these claims. "Andrew Malcolm got lots of things wrong and there are lots of inaccuracies in the book. The tax exemption was granted on the grounds that OUP is an integral part of the University, which is a charity, and because OUP's publishing activities are in direct furtherance of those charitable aims. The exemption is conditional only on the basis that profits are applied for charitable purposes only, which clearly covers transfers to the rest of the University," she commented.
Ms Pailing told Cherwell that the transfers had taken place, but over the past three years these had been £6 million a year, not the £10 million a year Mr Malcolm claims. She confirmed the existence of a reserve fund, but said that it was to "protect the remainder of the University, which has unlimited liability for the actions of the Press" and was not undisclosed but had appeared in press accounts and the Annual Report "since its establishment in 1984".
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