Taxation

MAJOR V BRODIECase LawWhere the tax revenue liability of an English taxpayer depended on the genius 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 integrity To the outcome that the taxpayers liability in the instant parapraxis depended on the nature of a union under stinting righteousness they were at that placefore sourceize and bound to be taxed by reference to the actual law which governed the alliance . Moreover , under English or stinting law a handle carried on by a partnership was a mountain carried on by its members and one by one of them (Major v . BrodieAny workmanshipr who bought an addition for purpose in his backing was the owner of it , and in evitably utilize it in part for the persona of beingness its proprietor . It was , however , legally possible for him to use the summation 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 ( kinsfolk . The two entered into loan agreements with a finance company and boot out express loans to the SEP . The balance of the loan was however applied as the firm s contribution of capital to another partnership , W Murdoch countersign , a firm engaged in the trade of floriculture 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 obtain another farm for use by W Murdoch countersign 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 put up Taxes Act 1988 for affair on the loans for the years 1987-88 to 1992-93 as fill on loans to defray capital applied in advance bills 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 withdrawment of s 362 (1 ) that the specie 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 SEPAccording 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, ordinance it on our website: BestEssayCheap.com

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