BRAY (INSPECTOR OF TAXES) Vs. BEST

JUDGEMENT

(1.) THIS is an appeal against an order of Walton, J. (1986) STC 96 made on 20th January, 1986 and entered on 18th February, 1986 reversing in part the decision of a Special Commissioner on an appeal by the Crown by way of case stated under s. 56 of the Taxes Management Act, 1970. On 30th and 31st January and 1st February, 1984, the Special Commissioner heard the appeals of the taxpayer against 21 assessments to income tax under Sch. E set out in the Income and Corporation Taxes Act, 1970 for the fiscal years 1958 -59 to 1978 -79 all inclusive (the employment years). On 2nd August, 1984 the Special Commissioner determined the appeals by discharging the assessments for the years 1958 -59 to 1977 -78 all inclusive and by reducing that for 1978 -79 to the agreed figure of Pounds 8,111, being the excess over Pounds 10,000 of the aggregate moneys in dispute and accepted by the taxpayer as liable to tax pursuant to ss. 187 and 188 of the 1970 Act.

(2.) THE relevant statutory provisions are limited, Under Case 1 of Sch. E in s. 181(1) of the 1970 Act (although amended in immaterial respects in relation to foreign emoluments in 1974 and again in 1977), tax under the schedule is chargeable in respect of any office or employment on any emoluments therefrom for a chargeable period. Sec. 183(1) defines emoluments as including all salaries, fees, wages, perquisites and profits whatsoever. Sec. 526(5) defines chargeable period as an accounting period of a company or a year of assessment. In the instant case, as the taxpayer is not a company, we are thus concerned with years of assessment.

(3.) THE Revenue then asked for a case stated and appealed the Special Commissioners findings against them. It seems that the taxpayer in his turn also argued before Walton, J. that the moneys he had received were not emoluments from his employment. The judge rejected this contention and, as I have said, it is not longer persisted in.