The Corporation of Foreign Bondholders v Inland Revenue Commissioners

[1944] 1 All ER 420

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Between: The Corporation of Foreign Bondholders
And: Inland Revenue Commissioners

Court:

Judges: Lord Greene Mr
MacKinnon LJ
Luxmoore LJ

Subject References:
Income Tax
Exemption
Charity
Protection of interests of holders in the United Kingdom of foreign bonds
Whether established for "charitable purposes"

Legislative References:
Income Tax Act 1918 (c 40) - s 37(1)(b); Sched D

Judgment date: 9 March 1944

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The appellant corporation was formed to protect the rights and interests of holders of public securities, especially foreign and colonial securities issued in the United Kingdom. It was contended that the corporation came within the class of charities which are beneficial to the community, since its ultimate object was to benefit the country as a whole, and that, therefore, the corporation was entitled to exemption from income tax under the Income Tax Act 1918, s 37:-

Held - the protection of the interests of foreign bondholders was not a charitable purpose.

Decision of Macnaghten J, ( [1943] 2 All ER 670 ) affirmed.

Notes

The Court of Appeal have affirmed the decision in this case, taking the view that the objects of the corporation are purely the protection of private interests and, therefore, not charitable.

As to Meaning of Charity for Income Tax Purposes, see Halsbury (Hailsham Edn), Vol 17, pp 310-314, paras 617-621; and for Cases, see Digest, Supp, Income Tax, Nos 472a-476k.

Appeal

Appeal by the taxpayer from a decision of Macnaghten J, dated 15 October 1943, reported [1943] 2 All ER, at p 670, where the facts are fully set out.