Major v. Brodie Essay Example for Free

Major v. Brodie Essay Case Law Where the tax liability of an English taxpayer depended on the nature of some entity or structure which was not constituted under English law, the matter was to be determined by reference to the actual legal characteristics of that entity or structure under its own governing law. To the extent that the taxpayers liability in the instant case depended on the nature of a partnership under Scots law they were therefore entitled and bound to be taxed by reference to the actual law which governed the partnership. Moreover, under English or Scots law a trade carried on by a partnership was a trade carried on by its members and each of them. (Major v. Brodie) Any trader who bought an asset for use in his trade was the proprietor of it, and inevitably used it in part for the purpose of being its proprietor. It was, however, legally possible for him to use the asset wholly for the purposes of the trade. (Major v. Brodie) Summary The author first recites the facts of the case. Taxpayers Mr. And Mrs. Brodie were members of a partnership under the name of Skeldon Estates (SEP). The two entered into loan agreements with a finance company and advance said loans to the SEP. The balance of the loan was however applied as the firm’s contribution of capital to another partnership, W Murdoch Son, a firm engaged in the trade of farming of which it was a member. Additional loan agreements were subsequently entered into by the taxpayers, the amount of which was applied to the SEP which it used to purchase another farm for use by W Murdoch Son in its farming trade, but which was not an asset of that partnership. The taxpayers claimed tax relief under s 362(1) of the Income and Corporation Taxes Act 1988 for interest on the loans for the years 1987-88 to 1992-93 as interest on loans to defray money applied in advancing money to the Skeldon Estates partnership for the purposes of the farming trade which it carried on as a partner in W Murdoch Son. The Revenue denied relief to the taxpayers because they did not meet the requirement of s 362(1) that the money advanced be used wholly for the purposes of carrying on the trade of the partnership claiming the relief. The Revenue treated the money advanced to W Murdoch Son partnership as money advanced for the purposes of carrying on a separate trade, and not for SEP.            According to the author, the conditions of s 362(1)(b) are satisfied. The provision of the law only requires that the money be used wholly for the purposes of the trade carried on by the partnership; it does not however require that such trade be carried on by the partnership alone. In his words: â€Å"When the paragraph requires the money to be used wholly for the purposes of the trade carried on by the partnership there is no need or justification for tacitly interpolating the word alone, or some other expression having the same effect. If the trade is carried on by the partnership, and here the farming trade is carried on by Skeldon Estates partnership (as it is also carried on by Mr Henry Murdoch), it makes no difference whether it is carried on by the partnership alone or in common with any other person or persons. It should be noted that the word wholly in s 362(1)(b) goes with used. It describes how the money has to be used, not who it has to be used by.† (Major v. Brodie) For purposes of granting relief under s 362(1)(b), the trade carried on by a partnership as a member of another partnership may be considered being carried on by it wholly for the purpose of that partnership.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The author then points to the argument of the Crown that the separate legal persona of the SEP from the taxpayers does not entitle them to relief under English law, Park J considers this untenable. First and foremost, the partnership is a Scottish partnership. It therefore has a legal persona separate and distinct from its members and the money advanced by its members can be regarded as money of the partnership, contrary to the Crown’s argument. Even if SEP was, for the sake of argument, an English partnership, the taxpayers would still be entitled to relief because when the paragraph refers to â€Å"the trade . . . carried on by the partnership,† its strict meaning in relation to an English partnership is â€Å"the trade carried on by the partners in their capacities as members of the partnership† because an English partnership does not have a separate legal persona.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The author then discussed the case of Mac Kinlay (Inspector of Taxes) v. Arthur Young McClelland Moores Co. [1989] STC 898, which will be discussed hereunder. Background Facts Arthur Young McClelland Moores Co, is a firm of chartered accountants with over 200 partners decided that it became necessary to ask partners and employees to move from one part of the country to another to ensure that the staff was deployed to the firm’s best advantage with the firm shouldering some of the expenses. Issues The Special Commissioners, in resolving the issue involving two of the firms partners, found that the expenditure was incurred wholly and exclusively for the purposes of the firm’s business by paying regard to two and only two considerations; The conscious motives of Wilson and Cooper in agreeing to move and the motives of the partners in requesting them to do so and agreeing to contribute to the cost in accordance with the established policy. Decision It was concluded by the Court of Appeals through Lord Oliver of Aylmerton that the expenditure was not allowable due to the fact that the purpose of the partnership could not to be determined because it had a separate legal identity which allowed for the purpose of the individual partner to be ignored. The decision in this case allows a deduction to the partnership for payments to a partner for trade or professional purpose and when the payment is in return for full commercial consideration.  It may be however that in relation to a particular receipt by a partner of partnership moneys not falling under either of the above heads, his co- partners are agreeable to his retaining it without bringing it into account so that to that extent the divisible profits at the end of the year are notionally reduced by the amount retained; but this cannot alter the fact that what is retained is part of the profits which would otherwise be divisible. What is taxable is the actual not the notional profit and what has to be demonstrated if a deduction is to be allowed for tax purposes in respect of moneys paid to a partner is that it was paid exclusively for the purposes of the partnership business. As the decision states: â€Å"‘separate entity treatment only arose at the final stage when, the profits of the trade or profession having been computed and the tax in respect of each partners share in them having been worked out, that tax was assessed in one sum in the partnership name. This matter went to machinery, not to principles of liability.† Conclusion   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The author concludes that a trade carried on by a partnership in its capacity as a member of another partnership may be considered as the trade carried on by the partnership for purposes of tax treatment and tax relief for interest payments.    References: HM Revenue and Customs, BIM38120 Wholly exclusively: partnerships: meeting a partners personal expenditure, retrieved December 3, 2006, http://www.hmrc.gov.uk/manuals/bimmanual/BIM38120.htm Mac Kinlay (Inspector of Taxes) v. Arthur Young McClelland Moores Co. [1989] STC 898. Major v. Brodie, [1998] STC 491, 70 Tax Cas 576.

The True American Hero :: Essays Papers

The True American Hero Heroism demands self-sacrifice, self-discipline, self-confidence and self-respect. Ulysses S. Grant had these qualities in their most complete form. He set out from humble beginnings, and failed. At the age of 38 was a conspicuous failure. Then, like few of us, he succeeded beyond belief. Had he not had tremendous greatness within him, he could never have accomplished what he did. How did such a simple, honest and humble man raise himself in the eyes of his people and the world to the highest position a man or woman can reach - that of a national hero? Grant remained a child at heart throughout his life, and seems never to have realized that he was one. His faith in the goodness of humanity was unbounded, and he was taken advantage of. His simplicity of nature was remarkable, yet this simplicity was the mainspring of his success; certainly it was the first asset of his generalship. While McClellan could see nothing beyond his own operations and Halleck nothing outside of his textbooks, Grant saw things as they were, uncontaminated by his ideas or anyone elses. He saw that the entire problem of winning the civil war was nothing more than an equation between pressure and resistance. The side which pressed the hardest along the lines of least resistance was going to win. His simplicity was the foundation of his modesty and honesty. He could not bear shams, pretensions and humbug. He despised after-dinner speeches and such orations because he felt they were silly; he simply could not deliver them. His orders were always clear, because they were always simple, honest and modest. He could not understand why a man should be dishonest, for to him honesty always seemed the best policy. His modesty taught him self-control, and his sense of duty was exceeded only by his duty towards his country. Self-control leads to self-respect, to dignity without arrogance, to pride without vulgarity, to ambition without selfishness, and Grant possessed all these many virtues to the highest degree. He was not "dignified" in the way that General Lee was, though rough and ready, he was always a gentleman, in the best meaning of the word. He was proud of his soldiers and his work, and ambitious to do his utmost for his country. He had so great a faith in the Union cause that he never for a moment lost hope that in the end it would succeed.

American Business Leaders

This essay briefly describes the life and achievements of two successful American business leaders, their brief life sketches, the ways and means used by them to achieve their success . It also goes to explain how each of them affected the American society and finally concludes with a comment on the morality of their actions.The two businessman chosen for this essay are : Andrew Carnegie, the pioneer of the American steel industry who lived in the nineteenth century, and Bill Gates,  the software wizard who has managed to change the definition a computer, from a ‘ highly scientific equipment’ of 1960s, to a necessary machine of every member of every family, not only in America but the entire globe !!!Andrew hailed from a very poor family of a hand weaver of Scotland who was disposed ‘workless’ by the power looms of the industrial revolution, and Bill was an entrepreneur at the age of 14 as a school student !!!! Both climbed up the ladder, to be respected a s the ‘captains’ of their ownrespective industries. Life sketches â€Å" I began to learn what poverty means, it was burnt to my heart that my father had to beg for work, and then came the resolve that I would cure it when I become a man. †. ( Andrew Carnegie) Can anyone believe that he would become the pioneer of the formidable American steel industry and the richest man on this world? Andrew Carnegie was born in a very poor family of a hand weaver who was disposed from his work when power looms came in during the industrial revolution in Britain.His mother used to do household work to manage daily bread. The family shifted to Pittsburgh in US in 1848. Andrew started working at the age of 17 as a telegraph delivery boy, and never missed an opportunity for advancement. Carnegie happened to come close to Thomas Scott, who was an official with Pennsylvanian railroad, while working at the telegraph office. Thomas hired him as his PA, and from there he climbed up to become the later become the superintendent of Pittsburgh division. The outbreak of civil war created a huge demand for iron and steel.Andrew saw this as an opportunity and invested in steel rolling mill. There was no looking back then. He became the richest man on this world during his times. In the later stages of his life, he sold off his steel business and concentrated on philanthropic activities, mainly for the spread of education and global peace. 2500 public libraries were opened with the help of his donations. He had given away $350 million as donations for the improvement of mankind. He had floated the idea of ‘league of nations’ and built the ‘ palace ofpeace ’ which later became ‘ world court ’. He was so disturbed by the hostilities of World War I that the last entry in his autobiography was on the day the war began !! ( Andrew Carnegie) On the other hand, Bill Gates, real name William Henry Gates III, was born in a rich family of Se attle, USA, to a lawyer father and mother was director in a bank. He went to the most expensive school of Seattle, where the fees were $ 5000 as compared to $ 1760 at Harvard. He was interested in programming from his early school days.The Computer Center Corporation banned students from his school, when they were caught exploiting bugs with the operating system to buy computer time!! So involved was he with programming that at the age of 14, he had already made a payroll program in Cobol and formed a venture with his school colleagues to make traffic counters and earn $ 20,000/- in the first year. When his age was disclosed, he was shown the gate !! He went to Harvard for his degree study where he met Steve Ballmer. Both joined hands as partners to establishMicrosoft ® a software consultancy firm, which has become the largest software company on this world. Windows operating system, invented by Microsoft ® has revolutionized the computer industry. Bill Gates is perhaps the only person to be ranked as the richest man on this world for 13 successive years, from 1993 to 2006 !! He announced his retirement from day to day activities in 2006, to turn his attention to philanthropic activities. ( Bill Gates) Methods Both Andrew and Bill have lived two centuries apart, and both were polesapart in their personalities and background. Hence their methods to amass wealth also vary substantially. Andrew lived in times when technology was not so advanced and resources were scarce. A very fierce lust for wealth was the driving force behind all his methods, and this force was driven by necessity. He had seen the ghastly face of poverty in his childhood and his sole aim in life to drive it away. This was coupled with eagerness to progress and earn more. In absence of any good scholastic background, his instincts was the only asset he had.He kept his eyes and ears open and took a right jump whenever he saw a rise in income coming through that jump. Experience was the only teacher, and he was an avid learner. He did not hesitate to jump if it offered financial gains. This was coupled with a sharp sense of vision. A vision to see the shape of things to come in future. He saw an opportunity in iron and steel during the civil war, and he invested in it. Taking right steps at an appropriate time is also one of the salient methods adopted by him.Though he was an advocate of trade unionism, he did not mind exploiting the workers of his own steel company, because self gain is the only motive of any businessman. This is evident from the labor strike at his company. Good administrative skills and good human relations management were the key methods to his success, which has earned him the reputation of ‘Captain of steel industry ’. Bill Gates has lived in a different era when technology had highly developed and he had an enviable scholastic background.His methods are more ‘intellectual’ than ‘physical’. It were the intell ectual abilities, especially his ability to find software solutions , that has enabled Bill to win the race. Like Andrew, Bill also saw an opportunity and lost no time in grabbing it. A salient highlight of Bill’s methodology is that he has always focused on ‘ innovations’ and ‘speed’. The milestones of developments his development are witness to the fact that his thoughts are very fresh and innovative, and he worked at such great speeds thathe has always been the first to offer tangible solutions. It has been Bill’s strategy to bank upon someone else’s idea, work upon it, and present the solutions before others can do it. Bill did not see anything wrong in working upon GUI which originally someone else’s idea. It was Bill who came up with the first GUI ‘Windows-3. 1’ which was an instant success. ‘ Ruthlessness’ was one of the methods which helped Bill to attain his status as the ‘captain of softw are industry’. Impact on American SocietyBoth Andrew and Bill have had tremendous impact on the American life. Andrews’ daunting spirits were not only helpful in establishment of the formidable American steel industry, but also an inspiration to many youngsters who were eager to start on their own. Europe was the focus of all technological development so far, but Andrew was instrumental in demonstrating that America has all the resources to beat Europe in this matter. It was largely due to his efforts that large scale industrialization and mass production concepts startedgaining momentum in the war torn America. Talking of Bill, he has changed not only America but the whole world. So wide and great is the impact of his thoughts and the products of his company that today almost Microsoft ® has become a household name over the globe. He has completely changed the way people communicate across the globe. This has a massive impact on the increase in global trade and comm erce. Today, a Director of a company head quartered in London can get the production figures from its units situated in America, and thesales figures from his office in Tokyo, within seconds. He should thank Bill Gates for making all these possible !! Moral Aspects All of us big or small, rich or poor have a social obligation. Both Andrew and Gates have erred drastically during their young age in their quest for wealth. Even though Andrew had witnessed poverty, he did not hesitate in exploiting the poor workers in his own steel company. The strike and the labor unrest due to this is a blot on his otherwise spotless career. ( Andrew Carnegie) On the other hand Billwent one step ahead, and saw nothing wrong in ‘stealing’ the GUI concepts which were initiated by others. His fierce maneuvering with IBM is one more example of business practice which can be judged ‘wrong’ morally. A legal suit, filed by the American Government over Microsoft ® raises many quest ions about the ethical policies of the Company. ( Bill Gates) Both these ‘captains’, towards the end of their career have exhibited unparallel moral sense by donating huge amounts for the betterment of the society. Andrewconcentrated on improvement through education, while Bill has been more aggressive and even touched social issues like ‘AIDS eradication’. Andrew died as a frustrated man due to hostilities of the first world war and what happens to Bill, only time will tell. Works-cited page 1) Andrew Carnegie, People and events- Andrew Carnegie, 1999, Retrieved on 18-02-07 from, < http://www. pbs. org/wgbh/amex/carnegie/peopleevents/pande01. html > 2) Bill Gates, wikipedia the free encyclopedia, 18-02-07, Retrieved on 20-02-07, From: < http://en. wikipedia. org/wiki/Bill_Gates >

Milan Faylu And Its Effects On Business Opportunities Essay

Being only 25 years old, Milan Faylu is the CEO and founder of Eben Naturals, a skincare brand based in Miami, FL. Even though he was born in the Democratic Republic of the Congo, due to his family business, he grew up in 7 different countries around the world and later attended University of Miami for his college education. This provided him with a globalized view towards business opportunities. It was during his studies at the University of Miami, when his idea for his venture first came about. During a trip back home to the Congo, Milan noticed the widespread use of skin lightening products by misguided consumers who had no information whatsoever about their harmful effects. Most of them even feature a high dosage of hydroquinone, a product said to be carcinogenic by the FDA. Instead of the alternative harmful skin lightening products, he thought it’d be great to promote products that would encourage people to embrace their natural skin tone. Subsequently, when he returned to the U.S, he started to pay more attention to the beauty industry and realized that there was a serious lack of beauty solutions geared towards his demographic. This was later confirmed by extensive market research, and combined with the passion he had towards the subject, he decided to dive into the project. Milan’s emotional reasoning behind his venture idea of empowering dark skinned p eople by creating an excellent product that is targeted specifically for them, agrees with the principles of TheShow MoreRelatedMilan Faylu, A And Founder Of Eben Naturals Essay844 Words   |  4 PagesMilan Faylu is the CEO and founder of Eben Naturals, a skin care brand based in Miami, FL. He was born in the Democratic Republic of the Congo, however due to his family business he grew up in 7 different countries around the world and later attended University of Miami for his college education. This provided him with a globalized view towards business opportunities. He was enrolled at the University of Miami, when his idea for his venture first came about. During trip back home to the Congo, Milan