The House considered the taxation of a foreign company’s distribution of its profits.
Held: The form by which the distribution is made rather than the substance that determines whether it is of capital or of income. Lord Pearce said: ‘the factual situation (which includes foreign law) has to be examined in order to apply the English law’
Income Tax, Schedule D, Case V – Capital or Income – Distribution of assets of foreign company.
Judges:
Lord Reid, Lord Cohen, Lord Jenkins , Lord Guest, Lord Pearce
Citations:
[1963] UKHL 7, [1963] 1 WLR 555, 41 Tax Cas 1, [1963] UKHL TC – 41 – 1, (1963) 41 TC 1
Links:
Jurisdiction:
England and Wales
Income Tax
Updated: 11 June 2022; Ref: scu.248549