Lothbury Investment Corporation Ltd v Inland Revenue Commissioners: 1979

The taxpayer company was a non-trading company owing shareholders substantial sums. Rather than pay dividends it waived dividends it held in a public company, and the shareholder waived interest on the loans. The IR apportioned the income of the company between the shareholders pro rata according to their interest on a winding up. The commissioners on appeal said they could not substitute their own view for the Revenue where the Revenue had not exceeded its powers.
Held: The Commissioners did have the jurisdiction to review the Revenue’s decision. But in this case the Revenue could not be said to have incorrectly exercised their discretion.

Judges:

Goulding J

Citations:

[1981] Ch 47, (1979) 53 TC 223

Statutes:

Income and Corporation Taxes Act 1970 296`

Jurisdiction:

England and Wales

Cited by:

CitedRegina (Chief Constable of Avon and Somerset Constabulary) v Police Appeals Tribunal QBD 2-Feb-2004
The constable was disciplined. The Police Appeals Tribunal ordered his re-instatement. The Chief constable complained that the tribunal had acted beyond its powers in not limiting itself to a review.
Held: The task of the tribunal was to . .
CitedTom Hudson (HM Inspector of Taxes) v JDC Services Limited ChD 26-Mar-2004
The taxpayer company had been refused a statutory Construction Industry Scheme certificate. The General Commissioners allowed the company’s appeal and itself issued a certificate. The revenue said the Commissioners had no jurisdiction either to hear . .
Lists of cited by and citing cases may be incomplete.

Taxes Management

Updated: 26 November 2022; Ref: scu.193468