A Scottish company carrying on business in various colonies paid the respective colonial income tax upon its profits in each colony. Having also paid British income tax, it obtained, under section 43 of the Finance Act 1916, repayment of a portion thereof in respect of its payment of the colonial taxes. Held ( aff. judgment of the Second Division), in a question with its preference shareholders, who were entitled to a fixed preferential dividend and no more, that the company was entitled to deduct from such preferential dividend the full amount of the British income tax.
Judges:
Viscount Haldane, Viscount Finlay, Viscount Cave, Lord Dunedin, and Lord Shaw
Citations:
[1920] UKHL 543, 57 SLR 543
Links:
Jurisdiction:
Scotland
Income Tax
Updated: 22 October 2022; Ref: scu.631544