Taxation

MAJOR V BRODIECase LawWhere the taxation liability of an English taxpayer depended on the constitution of some entity or body structure which was non be under English rectitude the matter was to be driven by reference to the actual legal characteristics of that entity or structure under its own governing police force To the outcome that the taxpayers liability in the instant subject depended on the nature of a coalition under stinting legality they were at that placefore sourceize and bound to be taxed by reference to the actual law which governed the compact . Moreover , under English or Scotch law a handle carried on by a partnership was a mountain carried on by its members and one at a time of them (Major v . BrodieAny workmanshipr who bought an addition for purpose in his allot was the owner of it , and inevitably utilize it in part for the persona of universe its proprietor . It was , however , legally possible for him to use the addition wholly for the purposes of the trade (Major v . BrodieSummaryThe author set-back recites the facts of the case . Taxpayers Mr . And Mrs Brodie were members of a partnership under the name of Skeldon Estates (family . The two entered into impart agreements with a finance company and come out express loans to the SEP . The balance of the loan was however applied as the unassailable s contribution of capital to another partnership , W Murdoch watchword , a firm engaged in the trade of cultivation of which it was a member . Additional loan agreements were by and by entered into by the taxpayers , the amount of which was applied to the SEP which it used to leveraging another farm for use by W Murdoch parole in its farming trade but which was not an asset of that partnership .

The taxpayers claimed tax relief under s 362 (1 ) of the Income and deliver Taxes Act 1988 for affair on the loans for the years 1987-88 to 1992-93 as recreate on loans to defray capital applied in advance currency to the Skeldon Estates partnership for the purposes of the farming trade which it carried on as a partner in W Murdoch Son . The tax revenue denied relief to the taxpayers because they did not meet the overlookment of s 362 (1 ) that the bullion good be used wholly for the purposes of carrying on the trade of the partnership claiming the relief . The Revenue treated the money good to W Murdoch Son partnership as money advanced for the purposes of carrying on a separate trade , and not for SEPAccor ding to the author , the conditions of s 362 (1 (b ) are satisfied . The provision of the law only when requires that the money be used wholly for the purposes of the trade carried on by the partnership it does not however require that such trade be carried on by the partnership simply . In his words : When the paragraph requires the money to be used wholly for the purposes of the trade carried on by the partnership there is...If you want to get a full essay, pasture it on our website: BestEssayCheap.com

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