Odeon Associated Theatres Ltd v Jones: 1970

The court gave the formulation for the method of computing profits for corporation tax: ‘For the purposes of Case I or II of Schedule D the profits of a trade, profession or vocation must be computed on an accounting basis which gives a true and fair view, subject to any adjustment required or authorised by law in computing profits for those purposes.’ The court rejected the argument that accounts must comply with fundamental principles of accounting additional to the best practice of accountants as embodied in the accounting standards as ‘entirely novel’.

Judges:

Sir John Pennycuick V-C

Citations:

(1970) 48 TC 257

Cited by:

CitedRevenue and Customs v William Grant and Sons Distillers Ltd HL 28-Mar-2007
The Revenue appealed findings as to the calculation of profits for corporation tax. The companies had sought to deduct sums from profits for depreciation of unsold stock in accordance with current accounting standards.
Held: ‘the profit and . .
Lists of cited by and citing cases may be incomplete.

Corporation Tax

Updated: 01 May 2022; Ref: scu.251430