In an action of count, reckoning, and payment by the beneficiaries under a trust for religious purposes, they averred that certain payments of income tax had not been recovered owing to the negligence of the trustees and their law agents. The tax had been paid on demand for a number of years, when it was brought to the knowledge of the trustees and their law agents that as a result of a decision of the House of Lords in an English case they had all along been entitled to recover it. The trustees thereupon recovered the tax for the previous three years, the limit of recourse allowed by the Income Tax Acts. The beneficiaries sued for the amount of the income tax for the years preceding these three.
Held in the circumstances that neither the trustees nor their law agents were personally liable for failure to recover the income tax.
Citations:
[1916] SLR 260
Links:
Jurisdiction:
Scotland
Trusts, Negligence
Updated: 23 April 2022; Ref: scu.618260