| Case ID |
eb29322b-5e19-41f8-a471-d83f9a5d263b |
| Body |
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| Case Number |
D-2741 of 1957 |
| Decision Date |
Feb 14, 1957 |
| Hearing Date |
Dec 13, 1956 |
| Decision |
The court dismissed the appeal, concluding that the American company Akron was exercising trade within the United Kingdom through its agent Brentford. The Special Commissioners found that Brentford's activities constituted a regular agency for Akron, which was responsible for selling tyres to distributors abroad. The judges unanimously agreed on the correctness of the lower courts' decisions, emphasizing that the trade was exercised in the UK as the contracts were made and fulfilled there, despite the goods being owned by Brentford. The court's ruling aimed to clarify the interpretation of tax obligations for non-residents engaged in trade within the UK, establishing that local operations and contractual obligations are key factors in determining tax liability. |
| Summary |
In the case of Firestone Tyre and Rubber Co. Ltd. v. Lewellin (Inspector of Taxes), the court examined whether Akron, a non-resident company, was liable for income tax in the UK. The court concluded that Akron was indeed exercising trade in the UK through its agent, Brentford. The judgment highlighted the importance of where sales contracts are made and executed in determining tax obligations for foreign companies. The court's decision reaffirmed that both the nature of the agency and the physical actions taken in the UK, such as receiving payments and delivering goods, play crucial roles in tax assessments. This case is significant for understanding the complexities of international trade law and tax liability, especially for businesses operating across borders. |
| Court |
Chancery Division
|
| Entities Involved |
Firestone Tyre and Rubber Co. Ltd.,
Firestone Tyre and Rubber Co. of Akron, Ohio,
Aktiebolaget A. Wiklunds Maskin & Velocipedfabrik
|
| Judges |
Lord Morton of Henryton,
Lord Radcliffe,
Lord Tucker,
Lord Cohen
|
| Lawyers |
George Honeyman,
David Wilson,
Sir Frank Soskice,
Sir Reginald Hills
|
| Petitioners |
Firestone Tyre and Rubber Co. Ltd.
|
| Respondents |
Lewellin (Inspector of Taxes)
|
| Citations |
1958 SLD 196,
(1958) 33 ITR 741
|
| Other Citations |
Sulley v. Attorney-General [1860] 5 H. & N. 711,
The Moorcock [1889] 14 PD 64,
Cassaboglou v. Gibb [1883] 11 QBD 797,
Maclaine & Co. v. Eccott [1926] AC 424,
Great Northern Railway Co. v. Witham [1873] LR 9 CP 16,
Household Fire and Carriage Accident Insurance Co. Ltd. v. Grant [1879] 4 Ex. D. 216,
Gramophone and Typewriter Ltd. v. Stanley [1908] 2 KB 89,
Grainger & Son v. Gough [1896] AC 325,
W.H. Muller & Co. (London) Ltd. v. Letham,
Neilson & Co. v. Collins [1928] AC 34,
Scales v. Atalanta Steamship Co. of Copenhagen [1925] 134 LT 411,
Absalom v. Talbot [1944] AC 204,
Hughes v. Bank of New Zealand Ltd. [1938] AC 366
|
| Laws Involved |
Income-tax Act, 1918
|
| Sections |
Schedule D, Para 1(a)(iii),
General Rule 5,
General Rule 10
|