* I am told that in fact, the Neurology Department, to the dismay of the neurologists, is to be moved out to the modern John Radcliffe complex in Headington, and that the site in the city will be largely bulldozed to make way for a more lucrative investment, the current favourite being student accommodation. - A. M.
1. Is this a genuine donation? It sounds as though it at last is, but a previous similar announcement (The Times, 17th July 1999) subsequently turned out to be bogus (see notes and linked articles).
2. There is still at least £60 million and perhaps £120 million in this mighty not-for-profit company's profit reserves (OUP's 2002/03 accounts show a reserve of £56.5 million, while OUP's 1999 'donation' of £60 million still remains 'undesignated').
3. As any novice lawyer will confirm, how a business spends its profits is irrelevant to any claim made by it for charitable status. Even a business which donated all of its profits to a charity would not on that ground alone be entitled to exemption from tax, rates etc..
4. Bookselling, including educational bookselling, is not recognised in law as a charitable purpose. Furthermore, in 2001, OUP's lost appeal in India (see below) established that, since Oxford University is not an educational institution outside the UK, OUP's foreign branches are not entitled to tax-exemption in their countries of operation, e.g. the USA.
5. In the UK OUP was covertly granted exemption from corporation tax in 1976 (strictly, it does not have charitable status), on condition (a) that it ploughs any surplus it makes back into 'non-commercial publishing' and (b) that it is on no account used by the university as a source of funding.*
6. None of these points addresses the further issues of Unfair Trading, whereby (for example) OUP is allowed to build up vast reserves on the back of its tax (and other) exemptions and from time to time use them to buy out tax-paying rivals around the world (there are several recent examples in the fields of ELT, law and science publishing). Until this license to print money is rescinded, OUP's inbuilt advantage will ensure that it can continue gobbling rival publishers indefinitely. Leviathan remains out of control.
* In 1987, OUP's Chief Executive Sir Roger Elliott stated: "The OUP, with its counterpart the Cambridge University Press, are unique, enjoying charitable status because of their scholarly aims. As such they do not make profits, but plough back any surplus into further scholarly publication. If OUP was sold publicly its charitable status could be in question." Click for the full article Times Higher Ed. Sup. 27/2/87 or for the detailed history of OUP's tax-exemption, with further links. See also a wonderful new 'explanation' now appearing on Oxford's own webpage 'About OUP'.
However, as more generous spirits will doubtless urge, perhaps this is not a moment for carping or legalism or sour grapes, but for celebration, celebration of a kind of grand if unacknowledged victory. In OUP's 2003 Annual Report, Chief Executive Henry Reece writes: "The amount transferred from the Press to the rest of the University between 1998 and 2003 totals £202 million." Let us therefore take him at his word and note the following remarkable chronology:
Late 1998: OUP axes its modern poetry list to save a disputed £20,000; at the time its reserves exceed £140 million and are rising; a row ensues and doubts, including Government doubts, are publicly raised about its right to tax-exemption.
1999: Andrew Malcolm discovers the true history of OUP's tax-exemption (covertly granted in 1976 and highly conditional - see 5 above) and publishes it in The Remedy. That year OUP announces the 'donation' to the University of £87 million from its reserves.
2002: Malcolm opens Akme Expression in Oxford advertising the above facts and is invited to give a talk at Borders bookshop. The talk is halted after five minutes by the police and the audience is evicted, including Professor John Marshall, a research neuropsychologist at the John Radcliffe Infirmary, Woodstock Road. Click for the Daily Telegraph report and picture.
August 2003: OUP announces the donation of a further £77 million, including £60 million for the purchase and redevelopment of... the John Radcliffe Infirmary, Woodstock Road.
THE SURPRISING TRUTH ABOUT OUP'S 'CHARITABLE STATUS': the controversial 5th Appendix to The Remedy, annotated and with further links. Also OUP'S U.S. TAX-EXEMPTION - an explanation and analysis of OUP's all-important American not-for-profit status, including application facsimiles, transcriptions, summary of accounts (1997), and a U.S. lawyers' Briefing Paper.
CUP'S TAX-EXEMPTION. M. H. Black's Cambridge University Press 1584-1984 (CUP), Chapter 15 Charitable status recognised. The Law Reporters' Case claimed as CUP's precedent. Other cited case references. AKME LAW LIBRARY includes other relevant charity law cases and materials.
OUP'S ACCOUNTS, The Delegates' Annual Reports and Financial Abstracts, 1994 - 2003, and Bookseller digests, 1988 - 1999. OUP's latest accounts 2002/03. THE WALDOCK REPORT, Oxford University's own resonant 1970, pre-tax-exempt, investigation into the workings of its Press. OUP Delegates lists.
THE INDIAN JUDGMENT, 2001. OUP's finally lost, 25-year appeal for charitable status in India. Click for The Indian Court Archive version (contains a number of typographical errors; link takes you out of www.akme) or for the Akme (corrected) version. Also newspaper articles: OUP facing huge tax bill The Oxford Mail, 21/3/01 A Message from India in-depth report The Oxford Times, 30/3/01 (including admissioon that OUP's 1999 'donations' were bogus). Also The South African judgments. An Oxbridge Chief Justice - Remnants of Empire?
Other articles: Mammon's Imprint: Oxford Prof. Valentine Cunningham on OUP's 1998 poetry massacre (+ THES leader comment and campaign), OUP fights corner in poetry row (includes CUP's donations to CU), US presses enjoy tax freedom, all THES 12/2/99. OUP to invest £87 million in university The Times 17/7/99, OUP denies breach of charity rules The Oxford Times, 5/11/99, Cooking the books? Cherwell 12/11/99, OUP profit row Cherwell 25/2/00.
SHAKE-UP OF UK CHARITY LAW. Government report, September 2002, has implications for Oxbridge colleges and presses. The Guardian 19/11/01, Accountancy Age 29/11, Oxford Student 21/11. Oxbridge accounts reveal assets of £2 billion: Sunday Times, 16/11/97. RANDOM HOUSE v. ROSETTA BOOKS. U.S. District Court, (Southern New York), July 11th 2001. 01 Civ. 1728 (SHS). Crucial law case on ebook publishing and rights, with possible implications for print-on-demand publishing