swarb.co.uk - law index
These cases are from the lawindexpro database. They are now being transferred to the swarb.co.uk website in a better form. As a case is published there, an entry here will link to it. The swarb.co.uk site includes many later cases.
Income Tax - From: 1996 To: 1996
This page lists 13 cases, and was prepared on 08 August 2015.
Young -v- Pearce; 1996 - (1996) 70 TC 331
Untelrab Ltd -v- McGregor [1996] STC(SCD) 1
1996
Income Tax
(Inland revenue Comissioners) A Jersey company was established as a wholly owned subsidiary of a UK-based group. The directors met in Bermuda, not in Jersey. Its function was to hold surplus group funds, to invest them for the time being, and to lend them to operating companies in the group when they were needed. All requests for loans were in fact accepted, but if a request had been improper or unreasonable it would have been refused by the local board of directors. One finding was: "The directors of Untelrab would have carried out instructions from Unigate so long as they considered that such instructions were not to the detriment of Untelrab and if the instructions were for the benefit of the group they saw no problem with that." In 1987, at the request of the parent company, the directors who had previously met in Bermuda resigned and appointed United Kingdom directors in their place. Thereafter board meetings were held in the United Kingdom. However, the Revenue assessed the company to corporation tax on the basis that it had in fact been resident in the United Kingdom throughout. The company appealed. Held: The appeal was allowed by the Special Commissioners. That a board might do what it was told, did not mean that the control and management elsewhare. The board exercised its discretion and would have refused to carry out an improper or unwise transaction. The subsidiary's board met in Bermuda and transacted the subsidiary's business there and would have refused to carry out any proposal which was improper or unreasonable. Although the subsidiary was ready to do as asked, it gave effect to the parent's wishes and the parent did not usurp the control of the subsidiary. The subsidiary's central management and control was in Bermuda and it was therefore resident there."
1 Citers
Carvill -v- Inland Revenue Commissioners; ChD 24-Jan-1996 - Times, 24 January 1996; Ind Summary, 19 February 1996
Deeny and Others -v- Gooda Walker Ltd (In Liquidation) (No 2) Albert and Others -v- Same Etc; HL 8-Mar-1996 - Gazette, 24 April 1996; Times, 08 March 1996
Wannell -v- Rothwell (Inspector of Taxes) Times, 11 April 1996
29 Mar 1996
ChD
Robert Walker J
Income Tax
Losses which had been incurred in speculative non-commercial trading in shares and commodities were not 'trade' losses for income tax purposes, even though the tax payer intended to become involved in fund management as a career, and had intended these activities to be a commercially successful series. The taxpayer had claimed up to sixteen calls a day to his broker, but had made only 20 or so trades year. He had in one year declared on his tax return that he had had no profit or loss in trading in that year. The commissioner's finding that there had been 'no commercial organisation' to his activities was not fully understood, but was not so wrong in law or fact as to be capable of being set aside.
Income and Corporation Taxes Act 1988 380 - Income and Corporation Taxes Act 1970 168(1) - Finance Act 1978 30(4)
McKnight (Inspector of Taxes) -v- Sheppard; Sheppard -v- McKnight Times, 21 May 1996
21 May 1996
ChD
Income Tax
Legal costs and fines not deductible - insufficiently connected with trade.
Income and Corporation Taxes Act 1988 74(1)
1 Cites
1 Citers
Templeton (Inspector of Taxes) -v- Jacobs Times, 06 June 1996; Gazette, 03 July 1996
6 Jun 1996
ChD
Income Tax
Tax which was payable on benefits in kind, was due only when the benefit becomes available to the taxpayer.
Nichols -v- Gibson (Inspector of Taxes) Times, 09 July 1996
9 Jul 1996
CA
Income Tax
A severance payment made after an employee had ceased to reside in the UK remained liable to tax under Schedule E.
Income and Corporation Taxes Act 1970 187
1 Cites
Mclaren -v- Mumford (Inspector of Taxes) Times, 02 August 1996; Gazette, 16 October 1996
2 Aug 1996
ChD
Income Tax
A publican's payment for the domestic rental of a flat above the public house was not deductible for income tax purposes, since it was not incurred entirely and exclusively for business purposes.
Income and Corporation Taxes Act 1988 74
Gascoine -v- Wharton (Inspector of Taxes); ChD 25-Oct-1996 - Times, 25 October 1996
Jeewooth -v- The Government of Mauritius; PC 26-Nov-1996 - [1996] UKPC 45
Rangatira Limited -v- The Commissioner of Inland Revenue [1996] UKPC 54; [1996] New Zealand UKPC 46
2 Dec 1996
PC
Income Tax, Commonwealth
1 Cites
[ Bailii ]
Albert Kendal Fawcett (HM Inspector of Taxes) -v- Commissioners for Special Purposes of Income Tax Acts and Lancaster Farmers Auction Mart Company Limited Times, 27 December 1996; [1996] EWCA Civ 1093
4 Dec 1996
CA
Income Tax, Taxes Management
Auctioneers were required to report their trading returns to the Inland Revenue so as to show the income of the sellers.
Taxes Management Act 1970 13
[ Bailii ]
