The annuities granted by a life assurance company were charged upon the whole funds of the company. Its income from interest on investments, dividends, and rents was very much larger than the amount of the annuities, and without this branch of income there would have been a deficit instead of a profit on a year’s trading. The income from interest, dividends, and rents was taxed at the source, and the income tax so paid was more than if the company had been assessed on nett profits under Schedule D. In paying the annuities the company deducted the amount of the income tax due in respect thereof, which it retained.
Held that the company was not bound to account to the Inland Revenue for the income tax so deducted
Lord Chancellor Loreburn, Lord Ashbourne, Lord Atkinson, and Lord Gorell
[1909] UKHL 94
Bailii
Scotland
Income Tax
Updated: 29 November 2021; Ref: scu.620598
