Section 402, on its plain meaning, produced results in some cases which were ‘monstrous’ and which Parliament can never have intended. The Commissioners had not sought to amend the legislation, but realising the monstrous result of giving effect to the true construction of the section, worked out what they consider to be an equitable way of operating it which seems to them to result in a fair system of taxation. The court per Lord Upohn, could not understand upon what principle they couldproperly do so.
The words ‘if the income of the body corporate’ were therefore seen as capable of meaning either the whole of the income or some only of the income.
Judges:
Lord Upjohn, Lord Reid
Citations:
[1968] AC 483
Statutes:
Jurisdiction:
England and Wales
Cited by:
Cited – Regina on the Application of Wilkinson v The Commissioners of Inland Revenue CA 18-Jun-2003
The claimant had not received the same tax allowance following his wife’s death as would have been received by a woman surviving her husband. That law had been declared incompatible with Human Rtights law as discriminatory, but the respondent . .
Cited – Vestey v Inland Revenue Commissioners ChD 1979
The case concerned section 478, which had monstrous and unintended results, if applied in accordance with its natural meaning. The Commissioners did not seek to apply the section in a manner which produced such results. The court held: ‘One should . .
Cited – (Un-named) R(FC) 1/91 SSCS 17-Jan-1991
SSCS Income – earnings of self-employed earner – whether motoring expenses and telephone expenses for both business and personal use may be apportioned – whether bad debts deductible – whether capital drawings . .
Lists of cited by and citing cases may be incomplete.
Income Tax, Constitutional
Updated: 16 June 2022; Ref: scu.184327
