The Estate of Godwin Young

• Jurisdiction: Ireland
• Judge: Wylie J.
• Judgment Date: 11 December 1917
• Court: Chancery Division (Ireland)
• Date: 11 December 1917

In the matter of the Estate of Godwin Young.

Wylie J.

CASES

DETERMINED BY

THE CHANCERY DIVISION

OF

THE HIGH COURT OF JUSTICE IN IRELAND

AND BY

THE IRISH LAND COMMISSION,

AND ON APPEAL THEREFROM IN

THE COURT OF APPEAL.

1918.

LandPurchase Acts — Practice — Claim under bank mortgage affecting purchase-money — Interest accrued since last half-yearly rest — Deduction of Income Tax — “Yearly interest” — Income Tax Act, 1842 (5 & 6 Vict. c. 35), sect. 102 — Income Tax Act, 1853 (16 & 17 Vict. c. 34), sect. 40.

Where a claim is vouched under an ordinary hank mortgage, affecting the purchase-money of lands sold under the Land Purchase Acts, for principal and interest accrued since the last half-yearly rest, income tax will not be deducted from such interest, even after the death of the vendor who created the mortgage.

Question arising on the ruling of the final schedule of incumbrances affecting the purchase-money of the lands sold herein under the Land Purchase Acts.

Appearing on the final schedule was a claim by the Provincial Bank in respect of a mortgage, dated the 21st day of April, 1911, whereby the vendor granted to the bank the lands sold in this matter and the purchase-moneys thereof, and the bonus payable in respect of the said purchase-moneys, to secure all sums then due or thereafter to become due by the vendor to the bank, and whereby the vendor covenanted with the bank that he would on demand pay to the bank all sums then due or thereafter to become due by him to the bank, with interest for the same in the meantime, until payment at the bank's current rate, and calculated according to the custom of bankers; and it was thereby (inter alia) declared that nothing therein contained was to be deemed or taken in any manner to affect the right of the bank at any time to sue for or otherwise to proceed against the vendor on foot of the moneys due to the bank.

The vendor has since died, and the proceedings for sale were carried on in the names of his personal representatives.

The bank had vouched their claim on foot of the said security for £5,151 0s. 5d. for principal and £149 5s. 9d. for interest, being at the rate of £6 per cent. per annum from the 1st day of July, 1917, the date of the last half-yearly rest, to the 1st day of December, 1917. The examiner had vouched the claim, but had deducted income tax from the interest.

H. D. Conner K.C., for the personal representatives of the vendor:—

Income tax has properly been deducted. This is an...