Income Tax – Retention – Customs and Inland Revenue Act 1888.-The Appellants are a proprietary Company carrying on the business of life insurance and of selling annuities. On payment of the annuities they deduct Income Tax. The Appellants are not charged under the First Case of Schedule D, the receipts of the Company, apart from their income derived from investments and taxed at the source, being less than the expenditure. Including the taxed income there is a considerable surplus. The annuities are not paid out of the taxed income specifically, and are not charged on any particular fund but indiscriminately on the whole of the funds of the Company.
Held, that the annuities must be treated as payable out of the taxed income, so far as it will reach, and that, as the taxed income of the Appellants exceeds the annuities, they are entitled to retain the whole of the tax deducted from the annuities.
Citations:
[1910] AC 143, [1909] UKHL TC – 5 – 472
Links:
Statutes:
Customs and Inland Revenue Act 1888
Jurisdiction:
England and Wales
Income Tax
Updated: 25 April 2022; Ref: scu.620595