MOORHOUSE Vs. DOOLAND

JUDGEMENT

(1.) EVERSHED M. R. In this appeal the question is whether the Crown are entitled to recover income -tax in respect of a sum (not finally ascertained, but treated for the purposes of the proceedings as amounting to pounds 48 or thereabouts) which represents the proceeds of collections made at cricket matches during the cricket season of 1951 for his own benefit by or on behalf of Mr. Bruce Dooland, a professional cricket employed as such at the relevant dates by the East Lancashire Cricket Club, one of the clubs commonly known as 'the Lancashire League.'

(2.) MR . Dooland was at the relevant dates assessed for tax and, as is agreed, rightly assessed - under Schedule E of the Income Tax Act 1918, his service as cricket professional being an 'employment' which, as the result of section 18 of the Finance Act, 1922, was translated from the scope of Schedule D to the of Schedule E. It follows that Mr. Doolands liability has to be tested having regard to the well -known language of rule 1 of Schedule E '... all... fees, wages, perquisites or profits arising therefrom,' that is, from the employment concerned. The Crown have not relied upon any of the special words, for example, particularly 'perquisites' in this rule. This, in the event, is not therefore a case related to any of the peculiar differences between the terms of Schedule D and Schedule E or their respective rules. The question is whether, upon the whole facts of the case as proved and found, these collections were in truth and in substance part of Mr. Doolands earnings as a professional cricketer and taxable as such : whether they fall fairly within the words which are found in the rule applicable to case II of Schedule D, 'all profits and earnings of whatever value arising from' the employment, a formula which for present purposes may be taken as synonymous with that quoted from the rule applicable to Schedule E.

(3.) MR . Doolands engagement was governed by a contract in writing dated August 27, 1949, and made between Mr. Eli Higham, on behalf of the Ease Lancashire Club, of the one part and Mr. Dooland of the other part. By that contract Mr. Dooland agreed to serve cricket professional to the club for the two seasons of 1950 and 1951. Clauses 2 and 3 were in the following terms : 2. The salary payable by the club to the professional shall be the sum of pounds 800 for each of the said two seasons to be paid by equal weekly payments throughout the said seasons or in such other manner or at such other times as may be mutually agreed upon and the club shall also pay in each of the said seasons the sum of pounds 150 for or towards the cost of one passage for the professional between Australia and England. 3. Talent money shall be paid to the professional by the club at the rate of one guinea for each and every score of fifty runs made by the professional guinea for each and every score of fifty runs made by the professional in any Lancashire League or Worsely Cup match in which the club takes part during the term of his engagement and also a like sum on every occasion on which he obtains six wickets or performs the hat trick in any such match. Collections shall be made for any meritorious performance by the professional with bat or ball in any Lancashire League or Worsley cup match in accordance with the rules for the time being of the Lancashire Cricket League' As will later appear, the last sentence of clause 3 is, in my view, of particular importance.