Cooper (Surveyor of Taxes) v Cadwalader
| Jurisdiction | England & Wales |
| Year | 1903 |
| Date | 1903 |
| Court | Exchequer |
NO. 271.-COURT OF EXCHEQUER (SCOTLAND), FIRST DIVISION.-
Income Tax, Schedule D (4th and 5th Cases).-An American ordinarily resident in New York, with no place of business in the United Kingdom, rents a house and shooting rights in Scotland, where he spends about two months continuously in each year. The owner of the house keeps it wind and water tight, besides bearing the expense of keeping the ground in order, and paying the wages of the gamekeeper, watcher, housekeeper, and housemaid. The shootings are under the entire management of the keeeper.
Held, that the Appellant was a person "residing in the United Kingdom" within the meaning of Schedule D of the Act of 1853, Section 2, and liable to assessment to Income Tax accordingly.
At a meeting of the General Commissioners of Income Tax for the District of Brechin, in the County of Forfar, held at Brechin on the 15th day of December 1903, John Lambert Cadwalader appealed against an assessment of £3000 made upon him under Schedule D of the Income Tax Acts for the year ending the 5th day of April 1904. The assessment was made under authority of the Finance Act of 1903 (3 Edward VII., cap. 8, sec. 5), 16 and 17 Vict., cap. 34, sec. 2, and 5 and 6 Vict., cap. 35, sec. 100, cases fourth and fifth.
The following facts were found or admitted:-
1. The appellant is an American citizen, and has his ordinary residence at No. 13 Thirty-fifth Street, New York, where he practises his profession as a barrister.
2. By minute of lease entered into between the factors and commissioners for the Right Honourable The Earl of Dalhousie of the first part, and the appellant of the second part, dated 16th March and 2nd and 3rd April 1900, there was let to the appellant
for the period of three years from 1st February 1900, at the yearly rental of £1500, payable in advance on 1st February yearly, All and Whole the sole and exclusive right of shooting and sporting over the grouse shootings of Millden, together with Millden Lodge and the furniture therein, and also with a right of fishing in the rivers and streams within the bounds of the territory let, upon inter aliathe conditions following:-(a) The furniture and other effects in the lodge and out-buildings were to be delivered over per inventory to the second party, who bound himself to keep and maintain them in good order during the currency of the said lease, and on the expiry thereof to deliver the same in an equally good state, ordinary wear and tear excepted. (b) The first parties undertook to maintain the whole buildings wind and water tight, and to bear the expense of keeping in order the grounds attached to the lodge, to pay all rates and taxes imposed in respect of said tenancy, and also to pay the wages of a housekeeper and housemaid and one gamekeeper and a watcher, all of whose services should be at the disposal of the second party. (c) The shootings were to be under the entire management of the present keeper, or any other keeper to be appointed by the first parties, but the services of said keeper and under-keeper to be at the service of and under the control of the second party during the shooting season. Upon grounds reasonable and satisfactory to the first parties, the second party might require the removal of any of the servants mentioned in fact 2 (b) and the substitution of others.3. The said lease, 1 a copy of which was put in and forms part of this Case, was continued by agreement for one year, to 1st February 1904, and by subsequent agreement, dated 3rd and 6th October 1903, the lease was renewed for a period of two years from 1st February 1904. These agreements also form part of the Case.
4. The appellant is a bachelor. He and his valet, whom he brings with him from America, reside at Millden continuously for a period of two months each year during the grouse shooting season. He employs a caterer from London, who supplies all food and servants. The guests at his house are mostly from America. When the appellant takes possession of Millden, the housekeeper and housemaid remove from the lodge and do not return until he goes away. The female servants are paid board wages by the first parties.
5. In the valuation roll of the County of Forfar the appellant is entered as tenant and occupier of the Millden shooting lodge and shootings, and he is charged to all the local and imperial rates and taxes applicable to such occupancy, though the proprietor relieves him of these taxes under the provisions of the
lease. The appellant is an alien, and is not entitled to vote, though his name appears in the register of persons entitled to vote in the election of a member to serve in Parliament for the County of Forfar.6. When the appellant or his friends are not living at Millden, the lodge is under the care of the female servants referred to in fact 2 (b), and is available for the appellant's return at any time.
7. The appellant has no place of business in the United Kingdom.
8. During the appellant's stay in the United Kingdom he maintains and keeps open for his return his residence in New York, to which he could have returned at any time. He also pays all taxes due by him in New York in respect of his dwellinghouse or his profession.
The appellant, who was represented by his agent, Mr. David G. Shiell, solicitor, Brechin, contended that he was not a person "residing in the United Kingdom" within the meaning of the Income Tax Acts, and quoted in support of his...
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