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16
The Gazette of the Incorporated Law Society of Ireland.
[JULY, 1921
The Council awarded Gold Medals
to
Michael Tynan and George McSpadden,
Silver Medals to Hutchmson E. Davidson and
Valentine E. Kirwan, and Special Certificates
to Barry M. O'Meara and Daniel O'Leary.
Eighteen candidates attended :
16 passed ;
2 were postponed.
Recent Legal Decision.
COMMISSIONERS OF
INLAND REVENUE,
Appellants;
BLOTT,
Respondent.
SAME,
Appellants ;
GREENWOOD,
Respondent.
HOUSE OF LORDS.
June 3rd, 1921.—
Revenue—Income Tax—
Super Tax—Bonus Shares.
These were appeals from a decision of the
Court of Appeal in England, which affirmed
a decision of Rowlatt, J.
The facts were substantially the same in
both cases. An assessment to super tax under
the Finance (1909-10) Act, 1910, was made
upon the respondent in the first case for a
certain year in respect of an allotment to him
of bonus shares in a limited company of
which he is a shareholder.
•
In the previous
year the company, in pursuance of a power
in that behalf contained in its articles, had
passed a resolution that out of its undivided
profits a bonus should be paid to its share
holders, and authorising in satisfaction of
that bonus a distribution among its share
holders of certain of
its unissued shares
credited as fully paid up, and the respondent's
shares had been allotted to him in that
previous year pursuant to that resolution.
Rowlatt, J., held that for the purposes of
the super tax the shares so allotted to the
respondent could not be treated as part of
his " total income from all sources for the
previous year " within the meaning of s. 66,
sub-s. 2, of the Act, inasmuch as they were
not part of his income but were an addition
to his capital in that year, and his decision
was affirmed by the Court of Appeal.
The House, by a majority of three to two,
after consideration, dismissed the appeals.
In the opinion of the majority the distribu
tion of these bonus shares was one of capital
and not of income, and was made such for
all purposes by the decision of the company
itself to that effect.
(Reported
Weekly Notes,
June llth, 1921.)
Notice of Change of Address.
MR. FREDERICK G. SHARPE, Solicitor, has
changed his
registered address
from
16
College Green to 8 Nassau Street, Dublin.
ALL communications connected with THE
GAZETTE (other than advertisements) should
be addressed to the Secretary of the Society,
Solicitors' Buildings, Four Courts, Dublin