Mitchell v. Egyptian Hotels Ltd [1915] UKHL 496 (09 July 1915)

Mitchell v. Egyptian Hotels Ltd [1915] UKHL 496 (09 July 1915)

The House of Lords, being equally divided, affirmed the Court of Appeal's decision that the company's business was carried on wholly abroad after the 1908 resolutions, with no acts of management or participation in business operations in the UK, so only profits remitted to the UK were assessable under Case 5 of Schedule D.

Citation
[1915] UKHL 496
Parties
Appellant: Mitchell; Respondent: Egyptian Hotels Ltd
Jurisdiction
United Kingdom
Judgment Date
09 July 1915
Procedural Posture
Appeal From Court of Appeal (england) / Final Judgment by House of Lords
Outcome
Appeal dismissed; Court of Appeal decision affirmed.
Legal Topics
Income Tax on Foreign Profits, Corporate Residency, Assessment Under Income Tax Act 1842, Remittance Basis Taxation
Tax Law Company Law Income Tax on Foreign Profits Corporate Residency Assessment Under Income Tax Act 1842 Remittance Basis Taxation

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Parties

Mitchell

Appellant

Egyptian Hotels Ltd

Respondent

Procedural Posture

Appeal From Court of Appeal (england) / Final Judgment by House of Lords

Legal Issues

  1. 1 Whether a UK-resident company is liable to income tax under Case 1 or Case 5 of Schedule D for profits earned abroad and not remitted to the UK
  2. 2 Whether the business was carried on wholly abroad or partly in the UK for tax purposes

Ratio Decidendi

The House of Lords, being equally divided, affirmed the Court of Appeal's decision that the company's business was carried on wholly abroad after the 1908 resolutions, with no acts of management or participation in business operations in the UK, so only profits remitted to the UK were assessable under Case 5 of Schedule D.

Court Disposition

Appeal dismissed; Court of Appeal decision affirmed.

Orders

  • Appeal dismissed with costs.
  • Assessment to income tax limited to profits remitted to the UK.