| Case ID |
f7931330-0b45-4383-9400-c445211ae879 |
| Body |
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| Case Number |
D-2741 of 1958 |
| Decision Date |
Nov 18, 1958 |
| Hearing Date |
Nov 11, 1957 |
| Decision |
The court ruled in favor of the Crown, determining that the payment received by Bryan Marshall was taxable under Case VI of Schedule D of the Income Tax Act, 1952. The agreement made on March 4, 1955, was found to predominantly involve the provision of services rather than the sale of property. The court concluded that the sum of £750 was not a sale of any property, as the reminiscences did not constitute copyright, and the rights granted were subsidiary to the main purpose of the agreement, which was service provision. Therefore, the appeal was allowed and the assessment was discharged. |
| Summary |
In the Chancery Division case involving Bryan Marshall and Housden (Inspector of Taxes), the primary issue revolved around the taxation of £750 received by the jockey for his reminiscences published in the Sunday Chronicle. The court examined the nature of the agreement made on March 4, 1955, where Marshall was to provide his life experiences for four articles. The decision hinged on whether the payment constituted a sale of property or compensation for services rendered. The court found that the payment was taxable under the Income Tax Act, 1952, specifically under Case VI of Schedule D. The ruling emphasized that the taxpayer did not sell any copyright or property, as his contributions were merely services in the form of providing personal anecdotes, which were trivial in nature. The case cites several precedents that clarify the distinction between property sales and service provision, ultimately concluding that the services rendered were taxable profits. This case underscores the complexities of tax law regarding payments for personal narratives, particularly in the context of ghostwriting and media publications. |
| Court |
Chancery Division
|
| Entities Involved |
Kemsley Newspapers Ltd.,
Inland Revenue
|
| Judges |
HARMAN, J
|
| Lawyers |
Alan Orr for the Crown,
G. B. Graham for the Taxpayer
|
| Petitioners |
Bryan Marshall
|
| Respondents |
HOUSDEN (INSPECTOR OF TAXES)
|
| Citations |
1960 SLD 59,
1960 PTD 585
|
| Other Citations |
Bradbury v. Arnold (1957) 37 Tax Cas. 665,
Donoghue v. Allied Newspapers Ltd. (1938) Ch. 106,
Ryall v. Hoare (1923) 2 K B 447,
Sherwin v. Barnes (1931) 16 T C 278,
Mitchell v. Rosay (1954) 35 T C 496,
Moriarty v. Evans Medical Supplies Ltd. (1958) 1 W L R 66,
Martin v. Lowry (1927) A C 312
|
| Laws Involved |
Income Tax Act, 1922,
Income Tax Act, 1952
|
| Sections |
3,
4(3)(vii),
123
|