MULLINGAR RURAL DISTRICT COUNCIL v ROWLES (Surveyor of Taxes)

JurisdictionIreland
JudgeK. B. Div.
Judgment Date20 May 1912
Date20 May 1912
CourtKing's Bench Division (Ireland)
The Mullingar Rural District Council
and
Rowles (Surveyor of Taxes) (1).

K. B. Div.

CASES

DETERMINED BY

THE KING'S BENCH DIVISION

OF

THE HIGH COURT OF JUSTICE IN IRELAND,

AND ON APPEAL THEREFROM IN

THE COURT OF APPEAL,

AND BY

THE COURT FOR CROWN CASES RESERVED.

1913.

Revenue — Local authority supplying water — Profit on water rents — Liability to income tax — Income Tax Act, 1842 (5 & 6 Vict. c. 35); Taxes Management Act, 1881 (43 & 44 Vict. c. 19); Public Health (Ireland) Act, 1878 (41 & 42 Vict. c. 52).

Held, that such profit was a profit within the meaning of the Income Tax Act, 1842 (5 & 6 Vict. c. 35), and therefore liable to income tax.

Case Stated under the provisions of 43 & 44 Vict. c. 19, section 59.

The case stated set out that the Mullingar Rural District

Council had appealed against an assessment made upon them under Schedule D of the Income Tax Acts for the year ending 5th April, 1911, in the sum of £247 in respect of the profits arising out of certain waterworks carried on by them which had been constructed under the provisions of the Public Health (Ireland) Act, 1878, and after referring to and quoting sections 61 (1), (2), (3); 232 and 233 of the said Public Health Act, the case proceeded as follows:—

4. To meet the general expenses incurred by the Mullingar Rural District Council in the execution of the Public Health (Ireland) Act, 1878, a “General Rate” is struck by the County Council on all ratepayers within the waterworks area, whether such ratepayers take the water or not. Such rate is levied as part of the poor rate under the provisions of section 233, quoted.

5. A “Special Rate” is collected by the Mullingar Rural District Council (under section 66 of the Act quoted) on all persons who take in the water. If the pipe for supplying the water does not exceed half an inch, the consumer is charged a 9d. rate on his valuation; but if the pipe exceeds half an inch, then the consumer has to pay by meter. The Mullingar Rural District Council do not supply water to any persons except to those ratepayers who make application to be so supplied, and the said Council have no power to supply water to persons outside their rural district.

6. The duties for Income Tax for the years 1910-1911 were granted by the Finance Act, 1910, section 3 (1), and by section 3 (2) of said Act all previous enactments relating to Income Tax were continued in force.

7. The rules for assessing and charging the several duties are contained chiefly in the Act 5 & 6 Vict. c. 35. By section 40 of that Act it is enacted that all corporations, companies, or societies, whether corporate or not corporate, shall be charged with the duties; and the chamberlain or other officer acting as treasurer shall be answerable for doing all such things as are required by the Act to be done in order to assessment.

8. The waterworks of the appellant are charged and assessed to the duties in the manner directed in Schedule A, No. 3, of the Act 5 & 6 Vict. c. 35, and under the 8th section of 29 Vict. c. 36, according to the rules prescribed by Schedule D of the first Act, so far as such rules are consistent with the said No. 3. The provisions of the said Schedule A, No. 3, so far as material, are as follows:—

“The annual value of all the properties hereinafter described shall be understood to be the full amount for one year, or the average amount for one year, of the profits received therefrom within the respective times herein limited:—(1) of quarries of stone, slate, limestone, or chalk, on the amount of profits in the preceding year; (2) of mines of coal, tin, lead, copper, mundic, iron, and other mines, on an average of the five preceding years, subject to the provisions concerning mines contained in this Act; (3) of iron works, gas works, salt springs or works, alum mines or works, waterworks, streams of water, canals, inland navigation, docks, drains, and levels, fishings, rights of markets and fairs, tolls, and other ways and railways, bridges, ferries, and other concerns of the like nature, from or arising out of any lands, tenements, hereditaments, or heritages, on the profits of the year preceding, the duty in each of the last three rules to be charged on the person, corporation, company, or society of persons, whether corporate or not corporate, carrying on the concern, or on their respective agents, treasurers, or other officers having the direction or management thereof, or being in the receipt of the profits thereof, on the amount of the produce or value thereof, and before paying, rendering, or distributing the produce or the value either between the different persons or members of the corporation, company, or society engaged in the concern, or to the owner of the soil or property, or to any creditor or any other person whatever having a claim on or out of the said profits, and all such persons, corporations, and societies respectively, shall allow out of such produce or value a proportionate deduction of the duty so charged, and the said charge shall be made on the said profits exclusively of any lands used or occupied in or about the concern.”

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7 cases
  • Arthur Guinness, Son, & Company Ltd, v Revenue Commissioners
    • Ireland
    • King's Bench Division (Irish Free State)
    • 17 July 1923
    ...the trade and business of the appellants, and that the assessments were not properly made. Mullingar Rural District Council v. Rowles ([1913] 2 I. R. 44) distinguished. The Glenboig Union Fireclay Co., Ltd., v. The Commissioners of Inland Revenue (unreported) applied. Guinness & Co. v. Comm......
  • Kirby v Clonmel Corporation
    • Ireland
    • High Court (Irish Free State)
    • 9 March 1931
    ...should be regarded as trading receipts for the purpose of assessment to income tax. Mullingar Rural District Council v. Rowles, [1913] 2 I. R. 44, applied. Kirby v. Clonmel Corporation T. J. KIRBY, Inspector of Taxes Appellant and CLONMEL CORPORATION, Respondents (1) High Court. Revenue - I......
  • The Sligo Rural District Council, Respondents v Gilbert Hanly and Others, Appellants,
    • Ireland
    • King's Bench Division (Ireland)
    • 25 February 1918
    ...Q. B. D. 738. (6) Unreported and [1917] 2 I. R. 86. (1) [1898] 2 Q. B. 358. (2) 2 Ex. D. 49. (1) 2 B. & C. 856. (2) 8 B. & C. 240. (3) [1913] 2 I. R. 44. (4) 2 N. I. J. R. 203. (1) 6 A. & E. 893. (2) [1897] 1 Q. B. 433. (3) 4 Q. B. 711. (4) [1902] 2 K. B., at p. 754. (5) 4 A. & E. 498. (1) ......
  • W A Robinson T/A James Pim & Son v J D Dolan (Inspector of Taxes)
    • Ireland
    • High Court
    • 27 July 1934
    ...170, [1927] IR 84. Clover Clayton & Co v Hughes [1910] AC 242 (p 256). Arthur Guinness Son & Co Ltd v CIR 1 ITC 1. Mullingar RDC v Rowles 6 TC 85, [1913] 2 IR 44. Glenboig Union Fire Clay Co Ltd v CIR 12 TC 427, [1922] SC 112. Franconini v Franconini 11 Jur NS 124. Re Mowleim 43 LJ CH 354. ......
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