Lord Advocate v. Lord Provost, Magistrates, and Council of the City of Edinburgh [1903] ScotLR 41_1 (15 October 1903)

Lord Advocate v. Lord Provost, Magistrates, and Council of the City of Edinburgh [1903] ScotLR 41_1 (15 October 1903)

A municipal corporation is statutorily obliged under section 24(3) of the Customs and Inland Revenue Act 1888 to deduct income-tax at the time of paying interest on temporary loans, regardless of whether the loans are for less than a year, and to render an account of the amount deducted to the Commissioners of Inland Revenue. The statutory language is clear and extends the deduction obligation to all interest payments, not just annual interest.

Citation
[1903] ScotLR 41_1
Parties
Pursuer/respondent: Lord Advocate; Defenders/reclaimers: Lord Provost, Magistrates, and Council of the City of Edinburgh
Jurisdiction
Scotland
Judgment Date
15 October 1903
Procedural Posture
Civil / Appeal (reclaiming Motion) From Interlocutor of Lord Ordinary
Outcome
appeal dismissed; interlocutor of Lord Ordinary affirmed
Legal Topics
Income Tax Deduction at Source, Municipal Borrowing, Interest on Temporary Loans, Statutory Interpretation
Tax Law Public Law Income Tax Deduction at Source Municipal Borrowing Interest on Temporary Loans Statutory Interpretation

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Parties

Lord Advocate

Pursuer/respondent

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

Defenders/reclaimers

Procedural Posture

Civil / Appeal (reclaiming Motion) From Interlocutor of Lord Ordinary

Legal Issues

  1. 1 Whether a municipal corporation is bound under section 24(3) of the Customs and Inland Revenue Act 1888 to deduct income-tax from interest paid on temporary loans for periods less than a year and to account for such deduction to the Commissioners of Inland Revenue.

Ratio Decidendi

A municipal corporation is statutorily obliged under section 24(3) of the Customs and Inland Revenue Act 1888 to deduct income-tax at the time of paying interest on temporary loans, regardless of whether the loans are for less than a year, and to render an account of the amount deducted to the Commissioners of Inland Revenue. The statutory language is clear and extends the deduction obligation to all interest payments, not just annual interest.

Court Disposition

appeal dismissed; interlocutor of Lord Ordinary affirmed

Orders

  • Defenders (Corporation) to render an account within one calendar month for the specified period of interest payments and deductions.
  • Defenders to deduct income-tax from all interest payments on temporary loans and account to the Commissioners of Inland Revenue.