Damages and Income Tax

1959 ◽  
Vol 17 (1) ◽  
pp. 86-98
Author(s):  
J. A. Jolowicz
Keyword(s):  
Income Tax ◽  
Law Reform ◽  
Personal Safety ◽  
Taxable Income ◽  
Capital Assets ◽  
House Of Lords ◽  
Inland Revenue ◽  
Rights And Interests ◽  
Relationship Of ◽  
Relevant Consideration

Although the whole of a man's rights and interests, which include his rights in his own personal safety, may not be readily divisible between his income and his capital assets, it is axiomatic that all those rights and interests are either subject to tax or not. It follows, therefore, that in an action for damages a claim may be made not only for loss of or damage to some non-taxable interest, but also, and perhaps exclusively, for a reduction in the plaintiff's taxable income caused by the wrongful act of the defendant. In such cases the plaintiff's liability to tax may become a relevant consideration, either as between himself and the Commissioners of Inland Revenue or as between himself and the defendant. It is the purpose of this article to consider some aspects of the inter-relationship of damages and tax, with particular reference to the decision of the House of Lords in British Transport Commission v. Gourley and the subsequent Report of the Law Reform Committee.

Income Tax and the Basis of Assessment of Insurance Offices.

1923 ◽  
Vol 2 (02) ◽  
pp. 93-106
Author(s):  
G. H. Recknell
Keyword(s):  
Income Tax ◽  
Financial System ◽  
House Of Lords ◽  
Inland Revenue ◽  
Constitutional Right ◽  
One Act

The first Income Tax proper was the Income Tax Act of 1799 imposed by Pitt as a more or less temporary measure intended to finance the war with France.Subsequent amending Acts were passed in 1803, 1805 and 1806. In 1816—just after Waterloo—the Tax was abolished and remained in oblivion for 26 years. In 1842 it was resuscitated by Sir Robert Peel, who was responsible for the Income Tax Act of 1842, and the Tax has remained in force ever since as a permanent and increasingly important part of our financial system. Of the Acts subsequent to 1842 the most important is the Act of 1853 when Gladstone left his mark on the Tax in several important particulars.Up till 1860 the annual Act by which the Tax is imposed was known as the Income Tax Act. From that time onwards—in order to make it more difficult for the House of Lords to exercise their constitutional right to reject money bills—the Tax, along with several others, was incorporated into one Act called the Customs and Inland Revenue Act. In 1894 the title was changed to the Finance Act, by which name it has been known ever since.

scholarly journals Michigan Oil and Gas Update

2021 ◽  
Vol 7 (3) ◽  
pp. 378-381
Author(s):  
William A. Horn ◽  
Joshua D. Beard
Keyword(s):  
Income Tax ◽  
Oil And Gas ◽  
Taxable Income

On March 23, 2020, the Michigan Court of Claims issued its opinion in Mannes v. Michigan Dep’t of Treasury. This case considered the meaning of the phrase “expenses of producing oil and gas” as such expenses relate to “taxable income” under the Michigan Income Tax Act of 1967.

scholarly journals Management Of Accrual Components In Response To Corporate Income Tax Rate Changes: Evidence From Korea

2013 ◽  
Vol 29 (5) ◽  
pp. 1421 ◽  
Author(s):  
Won-Wook Choi ◽  
Hyun-Ah Lee
Keyword(s):  
Financial Reporting ◽  
Income Tax ◽  
Tax Avoidance ◽  
Corporate Income Tax ◽  
Tax Rate ◽  
Taxable Income ◽  
Accruals Management ◽  
Accrual Management ◽  
Aggressive Tax Avoidance ◽  
Statutory Tax Rate

Changes in the statutory corporate income tax rate provide firms with an opportunity to reduce their tax burden by shifting their taxable income from higher to lower tax rate years. One negative consequence of shifting taxable income across years is higher variation in book income for financial reporting purposes. Taxable income and book income are closely related in most countries, and, in general, reporting volatile book income across years is not a favorable signal to investors. This study investigates how firms shift taxable income and concurrently mitigate book income fluctuation by managing accrual components separately when the statutory income tax rate changes. Unlike prior studies, we decompose discretionary accruals into two components and examine distinctive patterns of accrual management in Korea, where book-tax conformity is high and aggressive tax avoidance is restricted. We find that firms manage book-tax accruals for taxable income shifting and manage book-only accruals to mitigate book income fluctuation. Furthermore, we find the extent of book-tax and book-only accruals management varies depending on the firms tax and financial reporting costs. The results of this study provide clear and compelling evidence of firms opportunistic accrual management behavior in response to statutory tax rate reduction.

states that if such a requirement existed any disadvantage, provided it was ‘clear and obvious and more than de minimis’ may be small. The message is very clear that Morgan is something of an aberration on this point, proceeding from an unwarranted reliance on a single appeal from India (Poosathurai) and, at an appropriate point, the House of Lords will override it. As Nourse LJ states (at p 399): ‘Although in CIBC Mortgages plc, judicial courtesy no doubt prevented Lord Browne-Wilkinson from saying so, my strong impression is that he thought its introduction into cases of presumed undue influence was no more appropriate than into cases of actual undue influence.’ A further uncertainty arising out of the decision in Morgan is that Lord Scarman does not make it clear which class of undue influence he was dealing with. Subsequently, the Court of Appeal in Bank of Credit & Commerce International SA v Aboody, adopted a threefold classification, namely: • Class 1 Actual undue influence. • Class 2A Presumed undue influence arising out of recognised relationships such as solicitor and client, etc. • Class 2B Presumed undue influence not based on a recognised relationship, but in which there is a relationship of trust and confidence. Lord Scarman at no point indicates which of the relevant categories the respondent in Morgan fell into. Vicarious undue influence

1995 ◽  
pp. 431-431
Keyword(s):  
Undue Influence ◽  
House Of Lords ◽  
Class 1 ◽  
Relationship Of ◽  
Court Of Appeal ◽  
Commerce International

Figure 5.7: the institutions of the Council of Europe 5.4.3 Relationship of the Convention with English law The UK has had many cases brought against it by individuals, and its track record in relation to human rights has been demonstrated to be worrying. Between 1975 and 1990, 30 cases were brought against the UK and in 21 of these cases the ECtHR found that the government had violated the ECHR. By 1997, the number of successful applications against the UK had risen to 50. In 1997, when the Labour government came into power one of its election promises was to incorporate these Convention rights into English law. 5.4.3.1 1951–98 As an international treaty the Convention had no force within the English legal system, and Convention rights were not enforceable in English courts. However, the UK government could be taken to the ECtHR by individuals and, as noted above, it was. But, having said that, although the Convention had no force in the English legal system, it was not ignored over the course of almost 50 years between 1951 and 1998. English courts were indeed influenced by the Convention in a range of ways. Judges in the House of Lords stated that they would presume that Parliament

2012 ◽  
pp. 136-136
Keyword(s):  
Human Rights ◽  
Legal System ◽  
Council Of Europe ◽  
International Treaty ◽  
Track Record ◽  
House Of Lords ◽  
English Law ◽  
The Government ◽  
The Uk ◽  
Relationship Of

Vandervell v Inland Revenue Commissioners [1967] 2 AC 291, House of Lords

2020 ◽  
Author(s):  
Derek Whayman
Keyword(s):  
House Of Lords ◽  
Inland Revenue

Essential Cases: Equity & Trusts provides a bridge between course textbooks and key case judgments. This case document summarizes the facts and decision in Vandervell v Inland Revenue Commissioners [1967] 2 AC 291, House of Lords. The document also includes supporting commentary from author Derek Whayman.

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