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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: 1997 To: 1997

This page lists 17 cases, and was prepared on 08 August 2015.

 
Phipps -v- Income Tax General Commissioners for New Forest West and Another Times, 10 April 1997
10 Apr 1997
ChD

Income Tax
A penalty imposed for a refusal to state the source of a taxpayer's funds was proper.

 
David McKnight (Inspector of Taxes) -v- Brian Stephen Sheppard Times, 12 May 1997; [1997] EWCA Civ 1627
7 May 1997
CA

Income Tax
Legal expenses incurred by professional in defending disciplinary proceedings are deductible from taxable profits.
Income and Corporation Taxes Act 1970 130(a)
1 Cites

1 Citers

[ Bailii ]
 
Henwood (Inspector of Taxes) -v- Clarke Times, 14 May 1997; Gazette, 21 May 1997
14 May 1997
ChD

Income Tax
An employee changing cars during the tax year has to make separate computations of benefit for each car.
Income and Corporation Taxes Act 1988 157 sch 6

 
Regina -v- Commissioners of Inland Revenue, Ex Parte Ulster Bank Ltd Times, 15 May 1997
15 May 1997
QBD

Income Tax
An Inland Revenue notice served to require production of documents from a third party may include a request for conjectural classes of documents.
Taxes Management Act 1970 20(8A)

 
Commissioners of Inland Revenue -v- McGuckian Times, 20 June 1997; Gazette, 09 July 1997; [1997] UKHL 22; [1997] 1 WLR 991; [1997] 3 All ER 817
21 May 1997
HL
Lord Steyn, Lord Browne-Wilkinson
Income Tax, Taxes Management
Steps which had been inserted into a commercial transaction, but which had no purpose other than the saving of tax are to be disregarded when assessing the tax effect of the scheme. The modern approach to statutory construction is to have regard to the purpose of a particular provision and interpret its language, so far as possible, in a way which best gives effect to that purpose. The particular vice of formalism in the interpretation had been the insistence of the courts on treating every transaction which had an individual legal identity as having its own separate tax consequences, whatever might be the terms of the statute. It was: "those two features - literal interpretation of tax statutes and the formalistic insistence on examining steps in a composite scheme separately - [which] allowed tax avoidance schemes to flourish." Lord Browne-Wilkinson: “The approach pioneered in Ramsay and developed in later decisions is an approach to construction, viz. that construing tax legislation, the statutory provisions are to be applied to the substance of the transaction, disregarding artificial steps in the composite transaction or series of transactions inserted only for the purpose of seeking to obtain a tax advantage. The question is not what was the effect of the insertion of the artificial steps but what was its purpose. Having identified the artificial steps inserted with that purpose and disregarded them, then what is left is to apply the statutory language of the taxing Act to the transaction carried through stripped of its artificial steps.”
Income and Corporation Taxes Act 1970 478
1 Cites

1 Citers

[ House of Lords ] - [ Bailii ]
 
Johnson -v- Commissioners for General Purposes of Income Tax for Division of Blackpool In County of Lancashire and Commissioners of Inland Revenue [1997] EWCA Civ 1859
12 Jun 1997
CA

Income Tax

[ Bailii ]
 
Futura Participations Sa and Another -v- Administration Des Contributions Times, 23 June 1997
23 Jun 1997
ECJ

Income Tax, European
Member state may validly restrict tax losses to those incurred in business activities within its own borders.
ECTreaty Art 52


 
 Inland Revenue Commissioners -v- Willoughby; HL 16-Jul-1997 - Times, 16 July 1997; Gazette, 23 July 1997; [1997] UKHL 29; [1997] 1 WLR 1071; [1997] STC 995
 
Commissioner of Inland Revenue -v- Cosmotron Manufacturing Company Limited [1997] UKPC 42
28 Jul 1997
PC
Lord Browne-Wilkinson, Lord Lloyd of Berwick, Lord Nolan, Lord Hoffmann, Lord Clyde
Commonwealth, Income Tax
(Hong Kong) The taxpayer company was winding down its business. As it closed it made substantial redundancy payments to its employees. The Commissioners rejected a suggestion that such payments could be set off against income, saying that the payments had not been made, as required by the statute, "for the purpose of producing such profits; " Held: The test was indistinguishable form that applicable under UK law. "The severance payments were properly accepted by the Board of Review, by Findlay J (dissenting) and by the majority of the Court of Appeal as representing expenditure both for the purpose of producing profits and in the production of profits. The obligation to make them was contingent, like many of the employer's other contractual or statutory obligations, but was nonetheless incurred as a necessary condition of retaining the services of the employees concerned."
Income and Corporation Taxes Act 1988 74
1 Cites

[ Bailii ]
 
McManus -v- Griffiths (Inspector of Taxes) Times, 05 August 1997; Gazette, 03 September 1997
5 Aug 1997
ChD

Income Tax
A golf club steward providing catering services to a club is self employed, and not an employee for tax purposes, despite there being a contract of employment.

 
McNiven (Inspector of Taxes) -v- Westmoreland Investments Ltd Times, 19 August 1997
19 Aug 1997
ChD

Income Tax, Taxes Management
Loans made between associated companies for the sole purpose of creating a charge to tax were ineffective as avoidance scheme.
Income and Corporation Taxes Act 1988 338
1 Citers


 
Johnson -v- Blackpool General Commissioners and Others Gazette, 10 September 1997
10 Sep 1997
CA

Income Tax, Taxes Management
Time specified by tax payer for inspection of documents must be reasonable; no compliance in requiring inspection at just before midnight.


 
 The National & Provincial Building Society, The Leeds Permanent Building Society And The Yorkshire Building Society -v- The United Kingdom; ECHR 23-Oct-1997 - Times, 06 November 1997; 21449/93; 21319/93; [1997] ECHR 87; (1997) 25 EHRR 127

 
 EMI Group Electronics Ltd -v- Coldicutt (Inspector of Taxes); ChD 12-Nov-1997 - Times, 14 November 1997; Gazette, 12 November 1997
 
Edmunds -v- Coleman (Inspector of Taxes) Times, 25 November 1997; Gazette, 19 November 1997
19 Nov 1997
ChD

Income Tax
The increase of percentage of time from part time to full time occupation, could not itself constitute a material change so as to be treatable as a new profession.

 
Jaggers (Trading As Shide Trees) -v- Ellis (Inspector of Taxes) Gazette, 03 December 1997; Times, 10 December 1997
3 Dec 1997
ChD

Income Tax
The growing of trees as Christmas trees was not a use of land as forestry. It was not growing woodland, but was rather a gardening nursery. It was not a use for timber. Tax benefits were lost accordingly.
Income and Corporation Taxes Act 1988 53 SchD 1 - Income and Corporation Taxes Act 1988 53

 
Billingham (Inspector of Taxes) Times, 22 December 1997
22 Dec 1997
ChD

Child Support, Income Tax
Maintenance payments which were made direct to a child were not 'qualifying payments' under the Act allowing them to be set off against the tax payer's income tax liability.
Income and Corporation Taxes Act 1988 347B(1)

 
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