Lord Advocate v. Magistrates of Edinburgh [1905] ScotLR 42_691 (06 July 1905)

Lord Advocate v. Magistrates of Edinburgh [1905] ScotLR 42_691 (06 July 1905)

A municipal corporation that fails to deduct income-tax from interest payments as required by statute remains liable to the Crown for the amount that should have been deducted; the statutory duty creates a direct debt recoverable by the Crown.

Citation
[1905] ScotLR 42_691
Parties
Pursuer and Respondent: Lord Advocate; Defenders and Reclaimers: Lord Provost, Magistrates, and Council of the city of Edinburgh
Jurisdiction
Scotland
Judgment Date
06 July 1905
Procedural Posture
Civil / Appeal (reclaiming Motion) From Outer House to Inner House
Outcome
appeal dismissed; decree for pursuer affirmed
Legal Topics
Income Tax, Deduction of Income Tax, Municipal Liability, Customs and Inland Revenue Act 1888
Revenue Law Tax Law Income Tax Deduction of Income Tax Municipal Liability Customs and Inland Revenue Act 1888

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Parties

Lord Advocate

Pursuer and Respondent

Lord Provost, Magistrates, and Council of the city of Edinburgh

Defenders and Reclaimers

Procedural Posture

Civil / Appeal (reclaiming Motion) From Outer House to Inner House

Legal Issues

  1. 1 Whether a municipal corporation is liable to pay income-tax it failed to deduct from interest payments under section 24(3) of the Customs and Inland Revenue Act 1888
  2. 2 Whether failure to deduct and account for income-tax relieves the corporation of liability to the Crown

Ratio Decidendi

A municipal corporation that fails to deduct income-tax from interest payments as required by statute remains liable to the Crown for the amount that should have been deducted; the statutory duty creates a direct debt recoverable by the Crown.

Court Disposition

appeal dismissed; decree for pursuer affirmed

Orders

  • Decree for payment of £12, 19s. to the Crown by the defenders