Court : House of Lords
..... question is whether or not a sum given by parishioners and others to the vicar at easter, 1905, is assessable to income tax as being "profits accruing" to him "by reason of such ..... are easter offerings assessable to income tax as profits accruing by reason of the ..... collecting the money was to supplement the legal income of the vicar, and, while this is the ordinary history of easter offerings, in the present instance the thing is set out in black and white in the bishop's letter and the subsequent notices. ..... in this case, however, there was a continuity of annual payments apart from any special occasion or purpose, and the ground of the call for subscriptions was one common to all clergymen with insufficient stipends, urged by the bishop on behalf ..... the whole machinery was ecclesiastical - bishops, churchwardens, church collections - and i am unable to see room for doubt that they were made for the vicar because he was the vicar, and became, within the statute, part of the profits which accrued to him by ..... the money is collected in church (the offertory being part of the service) and is placed on the altar, the contributions of those unable to attend being handed to the ..... it is true, to subscribe as a personal freewill gift, the contributions were wholly voluntary, and the amount given was regulated entirely by the discretion of the subscribers. ..... but they acted straightforwardly, as one would expect, and the real character of what was done appears clearly enough from the papers in which .....
Tag this Judgment!Court : House of Lords
..... the egyptian accounts were made up and audited in egypt and subsequently forwarded to the respondents' office in london and submitted to the general meetings of the respondents in ..... (1) may be stated as follows: where a person resident in the united kingdom is interested in a trade or business wholly carried on abroad, such trade or business for the purposes of the income tax acts falls (1) 14 app. ..... case finds that the local board in egypt "reported the financial trading results to the board of directors for the purpose of being incorporated in the company's accounts and balance-sheets, and acted upon for the declaration of dividends," and, therefore, as i read it, impliedly finds, and certainly nowhere finds the contrary, that such results were adopted by the board of directors. ..... , a director of the respondents, gave evidence that the special resolutions which became operative on august 27, 1908, had been strictly observed and acted upon, and that the local management of the hotels was carried on exclusively by the local board in egypt, who reported the financial trading results to the board of directors of the company in england for the purpose of being incorporated in the company's accounts and balance-sheets and acted upon for the declaration of dividends. ..... balance-sheets and the profit and loss accounts of the company were made out in london, and all the accounts of the respondents, except so far as rendered unnecessary by the local audit in egypt, were audited in england. .....
Tag this Judgment!Court : House of Lords
..... it was suggested by counsel for the appellants that the income tax acts, except in certain special and rather narrow instances, took no account of the position of trustees, but regarded only the legal ownership. ..... 41 of the income tax act, 1842, renders the trustee, guardian or other person who has the control of the property of an infant, married woman, or lunatic chargeable to income tax in the place of such infant, married woman, or lunatic; and the same section declares that any person not resident in great britain shall be chargeable in the name of his trustee or agent having the receipt of any profits or gains. ..... the charge is laid upon the taxpayer by the first section of each taxing act: "for and in respect of the annual profits or gains arising from or accruing to any person or persons whatever, resident in the united kingdom, from any kind of property whatever. ..... 41 is mere machinery by which a person who is liable for income tax can be reached through the trustee or other persons mentioned in the section. ..... rules under the fourth and fifth case in section one hundred of the income tax act, 1842, be computed on the full amount of the income, whether the income has been or will be received in the united kingdom or not .... .....
Tag this Judgment!Court : House of Lords
..... . the appellant's argument is that, whatever may be the legal position of the capital and the equitable position of the trustee and the cestui que trust, as regards the right to the income, for income tax purposes the law is otherwise and that under the income tax act and by virtue of some implication the " accrual " is to the beneficiary ..... being, however, resident americans, they are no more chargeable with that income tax upon these "foreign " receipts than would any other resident american citizen receiving them on his own account. ..... my lords, i do not think it necessary, having regard to the full discussion which has taken place in the speeches which have been already made, to discuss the sections of the income tax act or the schedules which have been already referred to. ..... the retention by the trustees in their own hands of a portion of the income which they receive in order to pay lawful claims upon the fund, and charges which probably the lady herself would have had to pay or get paid for her, if she was resident in new york, and which the trustees will have to account for fully, can change the " origin or parentage " of the residue of the income received, lodged with the bankers of the beneficiaries. .....
Tag this Judgment!Court : House of Lords
..... and by section 19 of the income tax act of 1918, as amended by the finance act, 1920, it ..... the narrative quoted supra]by section 5 of the income tax act of 1918, as amended by the finance act of 1920, it is ..... during this period the trustees were owners of the landsin trust, no doubt, but still ownersand in such capacity they would, and did, settle the ordinary income tax under schedule a as for the mansion-house, which they possessed but allowed her the occupation of in terms ..... for the, purposes of super-tax, the total income of any individual from all sources shall be taken to be the total income of that individual from all sources for the previous year, estimated in the same manner as the total income from all sources is required to be estimated in a return made in connexion with any claim for a deduction from assessable income, but subject to the provisions ..... for the purpose of any claim for an allowance or deduction the income arising from the ownership of lands, tenements, hereditaments, or heritages shall, subject to any allowance, reduction, or relief granted under this act, be deemed to be the annual value thereof estimated in accordance with the rules ..... executors, and, under the provisions of the settlement, the whole estate was under their control, and, therefore, under section 6, subsection (2), of the finance act, 1894, they were in a position, if they chose, to elect to pay the estate-duty on the heritable property, and, having done so, they became accountable. .....
Tag this Judgment!Court : House of Lords
..... "the questions for decision are whether he was entitled to exemption from income tax on war loan interest under section 46 of the income tax act, 1918, as a person not ordinarily resident in the united kingdom, and on interest on securities of british possessions under rule 2 (d) of the general rules applicable to schedule c as a person not resident in the united kingdom, and the years under review are 1921-22, 1922-23, 1923-24 and 1924-25. ..... the expression "ordinary residence" is found in the income tax act of 1806 and occurs again and again in the later income tax acts, where it is contrasted with usual or occasional or temporary residence; and i think that it connotes residence in a place with some degree of continuity and apart from accidental or temporary absences. ..... " no doubt this definition must for present purposes be taken subject to any modification which may result from the terms of the income tax act and schedules; but, subject to that observation, it may be accepted as an accurate indication of the meaning of the word "reside. ..... it is suggested that the commissioners misdirected themselves in point of law, because they took into account, with regard to the earlier years, conduct, which only occurred subsequently. ..... but if he is a british subject the commissioners are entitled to take into account all the facts of the case, including facts such as those which are referred to in the final paragraph above quoted from the case stated in this instance. .....
Tag this Judgment!Court : House of Lords
..... assessment as imposed on the company as landlords, instead of on the various individual tenants who are the occupiers, in accordance with rule 8 (c)(i) of section 7 of schedule a of the income tax act, 1918, which provides for the assessment of landlords instead of tenants in the case of any house or building let in different apartments and tenements and occupied by different persons severally, and the amount of the assessment was duly paid by the company. ..... is whether the company in thus letting the premises owned by it is carrying on a trade within the meaning of the rule applicable to case i of schedule d of the income tax, 1918, and is therefore liable to be charged under that schedule in respect of the gains and profits of that trade, the crown contending that in that case they would be liable to bring into account as part of their gross receipts the amount of the rents received by them from the tenants of the several rooms ..... he arrived at the assessment by calculating the amount of profit as brought out in the profit and loss account of the company, after deducting expenses of management and upkeep, and then he proposed to deduct from the assessment so brought out the amount of assessment already paid under schedule ..... i am of opinion that income derived by a trading company from investments of its funds whether temporary or permanent in ggovernment securities must be taxed under schedule c : and cannot for the purposes of assessment under schedule d be brought into account. .....
Tag this Judgment!Court : House of Lords
..... my lords, the appellant is, by general rule 16 of the income tax acts, assessable to income tax in respect of the profits of his wife. ..... art of such monies are remitted to this country by the trustee and about these no question is raised, but part remain in new york and the liability of the appellant to have these retained monies assessed for income tax is the sole question on this appeal. ..... to a court of equity to compel the trustees to discharge the task imposed upon them which was to apply the money which they receive as a net income from the trust to her use that they have within the limits of reasonable and conscientious behaviour an absolute discretion as to the application of the income for her benefit, that if they decided to apply the money for her benefit instead of paying it over they must exercise the power to do so reasonably ..... or interest in the lands, but may enforce the performance of the trust in equity.this provision, although it relates in terms only to lands, had been held to be equally applicable to personal property, and again he said that lady archer- shee had no right to any specific dividends or interest at all," and he explained her rights in these words: while it was true that under the trust in question (there being no provision for accumulation) the whole of the net .....
Tag this Judgment!Court : House of Lords
..... my lords, the crown claims that the sum of 40,000 paid to the appellant in two instalments at a year's interval under the agreement of 6th april 1938 is chargeable to income tax under schedule e of the income tax act of 1918, as paid to him in respect of his office of director and coming within the words of rule i of schedule e, vizt, all salaries, fees, wages, perquisites or profits whatsoever therefrom. ..... of remunerating the holder or the person employed is to make payments to him periodically, but i cannot think that such payments can escape the quality of income which is necessary to attract income tax because an arrangement is made to reduce for the future the annual payments while paying a lump sum down to represent the difference. ..... it is evident, therefore, that the 40,000 on which the crown seeks to levy income tax is paid in part as the price of compounding the pension, and in part in consideration of the reduction of the appellant's annual salary from 6,000 ..... latter element, the learned judge held that it was clearly a profit from the office, and, as regards the ten-year pension, he held that, as the pension would have been assessable under schedule e by virtue of section 17 of the finance act 1932, the sum payable in commutation thereof was assessable under schedule e, and he based this finding on the decision in short brothers ltd. v. ..... , that the present appellant's accountants appear to have provided the basis for the agreed sum of 40,000, as stated in paragraph 8 of .....
Tag this Judgment!Court : House of Lords
..... no one would deny that charitable bequests, which may be made by general words for objects to be selected by the executors and which are free from certain restrictions such as the rule against perpetuities, and have certain immunities under the income tax acts, should be scrutinised before their right to be classed as charitable is admitted, but it is a different matter to make the test depend on anything but matters of substance. ..... the question in the case was whether the word charity, us used in the income tax acts, bore the same meaning in its application to scotlandas it did when applied in england and ireland. ..... this exception from the general principle that the testator has to decide in his will the specific destination of his property is allowed because of the special favour which the english law shows to charities, and the conception of what is charitable for such purposes has been elaborately worked out so that the courts are able to determine whether a particular gift is charitable or not. ..... the preamble will be found conveniently set out in section 13 (2) of the mortmain and charitable uses act, 1888, which after reciting that in divers enactments and documents reference is made to charities within the meaning purview and interpretation of the said act, enacted that references to such charities should be construed as references to charities within the meaning purview and interpretation of the said preamble. .....
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