By the terms of his appointment the manager of a limited company received as remuneration an annual salary of a fixed amount, and also a commission or bonus on the company’s net profits in each year. The Revenue having proposed to assess both salary and bonus upon the amount received in respect of the year of assessment under Rule 1 of Schedule E, held ( aff. the judgment of the First Division) that the commissions fell to be assessed, not under Rule 1 of Schedule E but as ‘perquisites’ under Rule 4 of that schedule, and might be estimated therefore either upon the amount received in the preceding year or upon the average of the three preceding years.
Judges:
Earl of Birkenhead, Viscount Finlay, Lord Dunedin, Lord Atkinson, and Lord Shaw
Citations:
[1923] UKHL 454, 60 SLR 454
Links:
Jurisdiction:
Scotland
Income Tax
Updated: 31 January 2022; Ref: scu.633258