Commissioners of Inland Revenue v Herdman
| Jurisdiction | Northern Ireland |
| Judgment Date | 01 January 1968 |
| Date | 01 January 1968 |
| Court | Court of Appeal (Northern Ireland) |
Transfer of assets outside United Kingdom - Owner of assets resident in Republic of Ireland at time of transfer - "Transfer or associated operations" - Whether for "purpose of avoiding liability to taxation" -Income Tax Act, 1952, s. 412.
In 1949 the appellant, the controlling director in a Northern Ireland company, went to live in Donegal in the Republic of Ireland. In 1951 he caused a company to be incorporated in the Republic and sold his shares in the Northern Ireland company to the new company. Part of the consideration was in the form of shares in the new company but a substantial balance was left outstanding. In the following years dividends of the Northern Ireland company were paid to the new company which made annual payments to the appellant in reduction of the balance due to him on the transfer. In 1953 the appellant resumed residence in Northern Ireland and in due course he was assessed to income tax for the years 1953 to 1958 on the ground that the "transfer or associated operations" had resulted in the acquisition by him of power to enjoy "income of a person resident or domiciled out of the United Kingdom" within the meaning of section 412 of the Income Tax Act, 1952. The Special Commissioners were satisfied that the purpose...
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Commissioners of Inland Revenue v Macpherson
...in the context of capital transfer tax legislation but he referred to a decision of the Court of Appeal in Northern Ireland, Herdman v. Inland Revenue Commissioners [1967] 45 T.C. 394 in which the tax avoidance provisions of sections 412 and 413 of the Income Tax Act 1952 had been consider......
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Re McGuckian (No 1)
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Commissioners of Inland Revenue v Willoughby
...persuasive authority of a decision by the Court of Appeal in Northern Ireland, in the case of Herdman v. Commissioners of Inland Revenue 45 T.C. 394. One of the issues raised in Herdman was precisely that now raised before your Lordships, and it was resolved by the Court of Appeal in favou......