Case Law

A trade carried on in Australia was vested in trustees who resided in Ireland and the UK. The trade was managed by local agents appointed by the trustees. The High Court held that the Appeal Commissioners were incorrect to have concluded that the trustees were assessable under Schedule D, the important factor was not what the trustees had the power to do but rather what they had actually done. As control lay with the agents and the trade was carried on solely in Australia, it was outside the charge to Irish tax. The Executors and Trustees of AC Ferguson (deceased) v Donovan (Inspector of Taxes) 1927 I ITR 183