Bebb v Bunny
| Jurisdiction | England & Wales |
| Judgment Date | 22 December 1854 |
| Date | 22 December 1854 |
| Court | High Court of Chancery |
English Reports Citation: 69 E.R. 436
HIGH COURT OF CHANCERY
S. C. 1 Jur. (N. S.) 203. See Goslings v. Blake, 1888-89, 22 Q. B. D 153; 23 Q. B. D. 324.
Income Tax. Interest on Purchase - money.
[216] bebb v. bunny.(!) Dec, 22, 1854. [S. C. 1 Jur. (N. S.) 203. See Goslings v. Blake, 1888-89, 22 Q. B. D. 153 ; 23 Q. B. D. 324.] Income Tax. Interest on Purchase-money. 5 Q Viet. c. 35, s. 102; (2) 16 &\1 Viet. c. 34, s. 40. A purchaser liable to pay interest on his purchase-money may deduct income tax from such interest. It was the practice to deduct the tax from the interest on debts upon promissory notes and the like in the offices of the Masters in Chancery. The tax is not deducted on payment of purchase-money into Court; but the purchaser, it seems, may apply to have it deducted when the purchase-money is paid out of Court. The words " yearly interest " in s. 40 of 16 & 17 Viet. c. 34, mean, not only interest accruing de anno in annum, but any interest at a fixed rate per cent, per annum, though accruing de die in diem. This was a suit for specific performance by a vendor against a purchaser. [217] Before the Judge in Chambers a question was raised as to the right of the Defendant, as purchaser, to deduct the income tax upon interest on his purchase-money payable to the Plaintiff, as vendor, for the time which had elapsed since the day fixed for completion of the purchase. , The following cases were cited to His Honour in Cham-[218]-bers : Duval v. Mount (35 Leg. Obs. 260), Holroyd v. Wyalt (1 De G-. & S. 125), Dinning v. Henderson (3 Id. 702), Dawson v. Dawson (11 Jur. 984), Humble v.-Humble (12 Beav. 43). the vice-chancellor Sir W. page wood. The question in this case depends upon section 40 of the 16 & 17 Viet. c. 34 and section 2, Schedule D; the language of which sections, from their vagueness, creates some difficulty. With the view to resolve my own doubts, I have, in addition to the assistance to be derived from the cases cited, endeavoured to ascertain what has been the practice of the Inland Revenue Office. It appears never to have been doubted that, under section 40, the tax upon interest on mortgages should be deducted; and that in practice the mortgagor, in all cases, deducts the tax. And I have been told, by the authority above referred to, that prosecutions have been instituted against mortgagees to recover the penalty for refusing to allow such deductions, and that such penalty has been paid without proceeding to...
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...at a yearly rate and if the intention of the parties is that it may have to be paid from year to year (Bebb v Bunny (1854) 1 K & J 216, 69 ER 436 and Corinthian Securities Ltd v Cato (1969) 46 TC 93). I would personally wish to avoid the use of the term “investment” as providing any sort of......
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Inland Revenue v Hay
...on advances made to him by his banker. I now turn to the Respondent's contentions. Reference was made by him to the case of Bebb v.Bunny, 1 Kay & J. 216. There a purchaser, liable to pay interest on certain purchase money, was held entitled to deduct Income Tax from such interest. Wood, V.-......
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The Commissioners of Inland Revenue v Sir Duncan Hay, Bart
...on advances made to him by his banker. I now turn to the Respondent's contentions. Reference was made by him to the case of Bebb v.Bunny, 1 Kay & J. 216. There a purchaser, liable to pay interest on certain purchase money, was held entitled to deduct Income Tax from such interest. Wood, V.-......
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Barlow v Commissioners of Inland Revenue
...the Special Commissioners have made a mistake. The general position of the law was laid down a long time ago in the case ofBebb v. Bunny, 1 Kay & J. 216, where the matter was fully discussed by Page Wood, V.-C., and that decision, though I think there has once or twice been some doubt cast ......