Commissioners of Inland Revenue v GULL (as TRUSTEE UNDER The WILL of MACGARVEY, DECEASED)
| Jurisdiction | England & Wales |
| Judgment Date | 29 October 1937 |
| Date | 29 October 1937 |
| Court | King's Bench Division |
NO. 1053-HIGH COURT OF JUSTICE (KING'S BENCH DIVISION)-
Income Tax - Exemption - Trust for charitable purposes - Whether established in United Kingdom - Income Tax Act, 1918 (8 & 9 Geo. V, c. 40), Section 37(1)(b).
The Respondent, who was resident in the United Kingdom, was one of three executors and trustees, two of whom were resident in the United Kingdom and one in Canada, appointed by a will by which the testator (who died domiciled in Ontario) bequeathed the residue of his estate in England and Russia on trust for sale and for the proceeds to be remitted to his executor in Canada, who was directed to apply them towards public charity.
On an appeal by the Respondent against a refusal of the Commissioners of Inland Revenue to admit a claim to exemption under Section 37 of the Income Tax Act, 1918, in respect of income from the residue of the English and Russian estate, the Crown contended that the trust for charitable purposes created by the will was established in Canada and that the Respondent was not a trustee of any trust for charitable purposes established by the will.
Held, (i) that the exemption afforded by Section 37, Income Tax Act, 1918, applied only to the income of charitable trusts established in the United Kingdom, but
(ii) that, in the circumstances of the case, the trust created by the will was established in the United Kingdom and the exemption applied to the income received in the United Kingdom by the trustees.
Stated under the Finance Act, 1925, Section 19, and the Income Tax Act, 1918, Section 149, by the Commissioners for the Special Purposes of the Income Tax Acts for the opinion of the King's Bench Division of the High Court of Justice.
1. At a meeting of the Commissioners for the Special Purposes of the Income Tax Acts held on the 1st December, 1936, Mr. Walter Gull, hereinafter called the Respondent, one of the executors and trustees of the will of Albert Macgarvey, deceased, being aggrieved by a decision of the Commissioners of Inland Revenue on a claim made by him for the years 1924-25 to 1934-35 inclusive under the provisions of Section 37 of the Income Tax Act, 1918, applied to have his claim heard and determined by the Special Commissioners.
2. By his will the said Albert Macgarvey directed the payment of his debts, funeral and testamentary expenses and gave a legacy of £400. The will further provided as follows:-
I give and devise and bequeath the balance of my estate "and property in England and Russia unto my executors and "trustees hereinafter named in trust to sell and convert the "same into money and to remit or send the proceeds thereof "to my executor in Canada whom I direct to use and apply "such proceeds towards Public Charity as he may select and "deem advisable preference being given to the maintenance "and support of a Home or Homes for Poor Children in the "City of London, Ontario, Canada, and if he see fit for the "erection of a Home for such children, such funds to be used "as a memorial to my deceased wife, Lucinda Macgarvey, "And I give devise and bequeath my...
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