The Income Tax Act 1860, sec. 6, enacts that the Commissioners for Special Purposes shall assess the duties payable under Schedule E in respect of all offices or employments of profit held under any railway company, . . ‘and the said assessment shall be deemed to be and shall be an assessment upon the company, . . and it shall be lawful for the company . . to deduct and retain out of the fees, emoluments, or salary of each such officer . . the duty so charged in respect of his profits and gains.’
A railway company under a contractual obligation with its officers paid their salaries without exercising its right under section 6 of the Income Tax Act 1860 of deducting the tax from the salaries. Held ( aff. the judgment of the First Division) that the amounts paid by the company in respect of income tax of its officers formed part of the income of the officer for income tax purposes, and that the company was assessable not only on the salaries actually paid, but also on the sums paid as income tax.
Lord Dunedin, Lord Atkinson, Lord Sumner, Lord Wrenbury, and Lord Carson
[1922] UKHL 53, [1922] UKHL TC – 8 – 332, [1923] AC 37, 60 SLR 53
Bailii, Bailii
Scotland
Income Tax
Updated: 08 January 2022; Ref: scu.632810