De Vigier v Inland Revenue Commissioners
[1964] 2 All ER 907(Judgment by: Lord Reid)
De Vigier
vInland Revenue Commissioners
Judges:
Lord Reid
Lord Evershed
Lord Guest
Lord Pearce
Lord Upjohn
Subject References:
Judgment date: 6 July 1964
Judgment by:
Lord Reid
My Lords, I agree with your lordships that there is no escape from the conclusion that this appeal must fail. There is no suggestion that either the appellant or his wife was trying to evade tax, and the transaction which has attracted tax liability was one which would never suggest that possibility to anyone unless he was familiar with income tax law. But the Revenue do not and probably should not have any discretion to remit tax legally due on the ground that the innocent taxpayer has fallen into a trap.
I realise that, if legislation is to be effective to forestall attempts at evasion, it must often be drafted in terms so wide that it can apply to a variety of quite innocent transactions. So one can only say that it is very unwise for anyone unfamiliar with income tax law to depart from the beaten paths of trust administration in any case where the settlement involves or provides for accumulation of income without first obtaining an opinion from counsel experienced in income tax matters.
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