STEVENS (Surveyor of Taxes) v The DURBAN-ROODEPOORT GOLD MINING COMPANY, Ltd
Jurisdiction | England & Wales |
Judgment Date | 11 February 1909 |
Date | 11 February 1909 |
Court | King's Bench Division |
NO. 301.-IN THE HIGH COURT OF JUSTICE (KING'S BENCH DIVISION).-
Income Tax, Schedule D. First Case. - Deduction. - An English Company, carrying on a gold mining business in the Transvaal, pays a tax in the Transvaal of 10 per cent. on the net produce obtained from working the mines.
Held, that, in arriving at the liability of the Company under Schedule D., the tax paid in the Transvaal should be deducted from the profits of the year to which it relates before striking the average.
1. At a Meeting of the Commissioners for the General Purposes of the Income Tax Acts for the City of London, held at the Guildhall Buildings in the said City on the 28th of April, 1904, the Durban Roodepoort Gold Mining Company, Limited (hereinafter for brevity termed "the Company") of Leadenhall Buildings, Gracechurch Street, in the said City, appealed against an Assessment of £19,191 (viz., £23,816, less Depreciation £4,625), for the year ending 5th April, 1904, made upon them under Schedule D to the Act 16 & 17 Vict. cap. 34, under the following circumstances.
2. The Company was incorporated in England on the 2nd January, 1888, under the Companies Acts 1862 to 1886, and with a Registered Office at Leadenhall Buildings, Gracechurch Street, in the City of London.
3. The authorised capital of the Company is £135,000 in £1 shares, of which 125,000 are issued and fully paid.
4. The Company was formed to acquire as a going concern the undertaking of the Durban-Roodepoort Gold Mining Company, Limited, of the Transvaal and Natal. The property includes (A) a freehold of 162 morgen and 204 square roods (about 243 acr s), including the mining lease, or mynpacht, situated on the Farm Roodepoort, Witwatersrandt, Transvaal, (B) twenty-three outcrop claims, each 400 feet by 150 feet, in two blocks of thirteen and ten respectively, and (C) sixty-seven deep level claims and seven additional claims for adit, all situate in the Witwatersrandt Main Reef and held under the usual Government Licences subject to the payment of £1 per month per claim. The purchase money of £70,000 was paid as to £15,000 in cash and £55,000 in fully paid shares.
5. The Company commenced working and developing the said mines and mining properties during the year 1888. The number of stamps during the period of assessment has been increased to 80.
A print of the reports, accounts, &c., of the Company for the year ending 31st December, 1902, is annexed hereto and made part of this case.(1)
6. It is admitted by the Company that the profits, calculated on the average...
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Commissioners of Inland Revenue v Dowdall, O'Mahoney & Company Ltd
...not of law to pay for the purposes of his trade in the U.K. Reliance was also much placed by the Respondents upon the case of Stevens v. Durban Roodepoort Company, 5 Tax Ca. 402, in which Mr. Justice Channell held that a tax paid in the Transvaal of 10 per cent, on the net produce obtained ......
- Commissioners of Inland Revenue v Dowdall, O'Mahoney & Company Ltd
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STEVENS (Surveyor of Taxes) v THE DURBAN-ROODEPOORT GOLD MINING COMPANY, Ltd
...the Attorney-General asked me.The Attorney-General.-Yes, my Lord. The Appeal will be dismissed with costs?Channell, J.:-Yes. 1 Reported 25 T.L.R. 316. 1 Omitted from the present 1 Omitted from the present print. ...