Daphne v Shaw 11 TC 256, 1926
Citation:Daphne v Shaw 11 TC 256, 1926
Rule of thumb 1:What happens if there is a tax statute which the Court thinks is illogical? It still has to be applied.
Rule of thumb 2:What happens if there is a business expense which statute deems not to be tax deductible? The statute must still be followed – tax rules cannot be ignored just because they are illogical.
Judgment:
Certain assets that are purchased cannot be considered to be ‘plant’ and the line has to get drawn somewhere, ‘I cannot bring myself to say that the books of a lawyer, whether a barrister or a solicitor or, I am sorry to say, a judge … I cannot bring myself to say that such books as those people use to consult are "plant" … I am sure [that] 99 people out of a hundred would agree [that] … the books which a man consults for the purposes of information … [are not his plant] … It is hard, but I have to deal with the words of the Act of Parliament, and unless I can say books are "plant" I cannot do anything for Mr Daphne.’ Mr Justice Rowlatt
Warning: This is not professional legal advice. This is not professional legal education advice. Please obtain professional guidance before embarking on any legal course of action. This is just an interpretation of a Judgment by persons of legal insight & varying levels of legal specialism, experience & expertise. Please read the Judgment yourself and form your own interpretation of it with professional assistance.