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adhering to what it regarded as the "principle." Finally, the Department took absolutely no steps to let this rather fantastic relief be known to those who were in a position to benefit from it, and we do not doubt that in many cases it was not claimed because it was not known.

It was common knowledge that many of the officials did not approve of the Department's official view on this matter of the true nature of a tax-free annuity. Alongside of that there is the strange fact that the death-duty officials charged legacy duty on different bases on annuities, according as they were, or were not, bequeathed free of income tax. If a testator left two annuities of the same amount to two ladies of the same age and in the same degree of relationship, A's annuity being in the ordinary terms and subject to income tax, while B's was be queathed free of income tax, B pays more legacy duty than A. The reason of course was, and is, the very obvious one that more is bequeathed to B than to A. The practice is to take the rate of tax ruling at the testator's death, and so to arrive at the gross sum of any annuity free of If the bequests were-to A an annuity of £70, and to B an annuity of £70 free of tax, then for legacy duty at present A's annuity counts as £70, and B's as £100. This may be all right, but the contrast between the two official branches was too striking, and amounted to a wrong.

tax.

Recently things have been moving with reference both to the special point with which we have been dealing, and also generally. There was a recent decision in England that, when an annuity is bequeathed free of income tax, that means free of super-tax also (Oldham v. Crosse, [1920] 1 Ch. 240). This is on the ground that super-tax is just income tax. The learned judge's view was that, while specialties of expression in the bequest might, of course, make a difference, it would require some specialty to deprive the annuitant of super-tax immunity, the implied rule being the other way.

Then, also in England, it was decided that, when an annuity is given free of super-tax, that means that the testator's estate must pay, for the annuitant, the same proportion of her total super-tax liability as the annuity bears to her total income (Wimble v. Bowring, 1918, 34 T.L.R. 575). That is common arithmetical sense. But then, when we proceed to work out the sum in proportion, we are at once up against the old question: Is the annuity (assuming it to have been bequeathed free of income tax) to be taken at its gross, or at its net, figure? Is an annuity of £700 free of tax to go into the proportion sum at £1000 or at £700? The same judge (Sargant J.), in the same case, dealt with this and declared for £1000.

That was just about an end of it, though that decision was given in a case to which the Inland Revenue was not a party. But the general

"case" was becoming too strong for the Department to stand out longer, and indeed it may be that they began to see that it would pay them just about as well one way as the other-perhaps better-having regard to (1) the ex gratia relief which they were giving, and which would stop if they changed their whole attitude, and (2) the cases where tax was being lost owing to the restricted statement of the income of the annuitant which necessarily followed from the Department's "net" view. Accordingly the latest decision has been given in a case in which the Inland Revenue was a party, and in which from the Exchequer's point of view it was argued that a tax-free annuity of £70 is really an annuity of £100. We think we are right in saying that the case has not been reported. It is Meeking (in name of Wilson and Johnson) v. Commissioners of Inland Revenue, decided by Mr Justice Rowlatt on 2nd June 1920. The facts were special and interesting. The testator made a marriage settlement, under which his widow was to get an annuity of £10,000, but subject to tax. Then in his will he directed his trustees to pay to her each year "such a sum (free of all income tax and super-tax) as will reimburse to her all super-tax payable by her for such year, and all income tax (so far as the same shall exceed 1s. 2d. in the £) payable by her for such year on the annual sums received by her under this will and the said settlement "-which by the way is a good example of a well-drawn clause. In applying this it has to be borne in mind that the Department has got all the income tax, for the whole payments are made out of trust income, which is taxed at the highest rate through the trustees of the settlement or of the will. It will simplify matters if we assume unqualified freedom from tax provided for in the will. In year No. 1 the widow draws £10,000 (less tax) from the settlement trustees who have paid tax on the whole income, and she draws from the will trustees an amount equal to the tax so deducted from her. There is no claim for super-tax that year, for super-tax is charged on last year's income. Then in year No. 2 the same thing is repeated, plus a claim by the Department upon the widow for supertax on last year's annuity; yes, but what was last year's annuity, keeping in view that it was tax-free? Was it £10,000? or was it £14,285, that being the gross sum which, after taking off income tax at 6s., leaves the net £10,000? On the former view the super-tax in year No. 2 is £1462, 10s.; on the latter view £2533. This kind of case must have proved a temptation to the official mind, or, putting it more charitably, an eye-opener. At any rate the demand is for super-tax on the £14,285; and this super-tax the trustees of the will have to pay as best they can, that is to say out of income, if there is income, or out of capital if not; and if out of capital there will be a further tax complication, over

which we do not pause. Then in year No. 3 the snowball process continues. The widow is assessable to super-tax on the income of year No. 2. But what was that income? This was the precise form in which the question arose in Meeking's case. Well (assuming that those trust rights were all she had) there was in year No. 2(1) the plain £10,000; (2) the difference between that sum and the gross income required to yield the net £10,000, which, as we have seen, is £4285; (3) the super-tax paid in year No. 2 by the trustees for the widow, which was £2533; and (4)—and this was the immediate de quo in Meeking the difference between that sum and the gross income required to yield the net £2533, which is £1086. This bequest of a free sum to pay the super-tax is just the gift of an additional tax-free annuity. So the widow's super-tax return for year No. 3, shewing her "income" for year No. 2, ought to contain the following

1. The amount of trust income which was required in year No. 2 to yield the clear £10,000 actually paid to the widow,

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2. Super-tax

£10,000

2,533

£14,285

3,619

cases in which the annuitant will thereby lose. And in Meeking Mr Justice Rowlatt had absolutely no doubt that an annuity bequeathed free of income tax is truly a gift of the gross annual sum which, after deduction of tax, leaves the net amount. Following on that the income tax authorities have, in reply to a private enquiry, stated:

The Board are of opinion that, in computing the total income for income tax purposes of an individual, who is entitled under the specific directions of a will to receive an annuity without deduction of income tax out of taxed sources, an addition in respect of the tax appropriate to the net amount of the annuity falls to be made thereto, the annuitant being deemed to have borne a corresponding amount of tax. The Board will, accordingly, in future offer no objection to a claim for relief appropriate to the total income computed.

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This is an end to the ex gratia repayments to the payers of such annuities which have been in vogue for some years back. But none of these refunds can be recovered by the Department from the parties who received them. Nor is the fact of such refunds having been made any answer to the annuitant whose rights are now admitted and who is clearly entitled to carry £17,904 back a claim for repayment for the full period 2,000 permissible within the three years' time-limit. In equity there would appear to be a claim to go back still further, but there must be some limit. Where, however, an actual claim was made beyond the three years it is difficult to see why that should not now be taken up again and pressed.

£15,904

only to £17,904 5,371

Mr Justice Rowlatt made it quite clear that in his opinion the rule which he applied is not £12,533 limited to the case of annuities strictly so-called, and it would appear that it will apply to such cases as allowances paid by trustees out of taxed income for the maintenance and education of minor and other beneficiaries, and also to trusts for the application out of taxed income of such sums as may be necessary for the maintenance of beneficiaries who may be physically or mentally incapable.

12,533 The rate of income tax and super-tax being high, the snowball grows apace, and there emerges a crescendo of liability on the estate, the extent of which the testator probably did not realise. As the learned judge points out, if only the annuitant lives long enough, it may well end in bankruptcy. In any case it is a very serious rider on all postponed interests. It makes one wonder whether the death duty Department will now revise and stiffen their assessment of the value of an annuity bequeathed free of income tax and super-tax.

But while cases such as Meeking are both serious and interesting, it is still the fact that, so far as numbers go, there are far more cases in which the annuitant will gain by the tax-free annuity being computed on the larger basis than

WE regret to notice that on 27th March Mr John Bremner Davidson, solicitor, Dunfermline, died in London. He was on his return journey from Switzerland, where he had spent six months' holidays. He was a member of Dunfermline Parish Council and was clerk to the local Old Age Pensions Committee. A native of Wick, he had been in business in Dunfermline for about twenty years. He had acted as parliamentary agent to Mr John Wallace, M.P. for Dunfermline Burghs.

DEATH OF AN ARDROSSAN SOLICITOR.-Mr Arthur Craig, solicitor, Ardrossan, has died suddenly after a brief illness. He was Lord Eglinton's agent in Ardrossan and Saltcoats, and was for many years secretary and treasurer of the local Unionist Association, and acted as Unionist agent locally at elections. He was unmarried.

As we go to press we learn with much regret of the sudden death at Falkirk of Sheriff Moffat, Sheriff-Substitute of Stirling, Dumbarton, and Clackmannan at Falkirk, and of the Lothians and Peebles at Linlithgow. We hope to publish a portrait biography in an early issue.

DEATH OF AN EMINENT INDIAN
LAWYER.

By the death of Sir Rash Behari Ghose, C.S.I., C.I.E., which has occurred at Calcutta at the age of seventy-five, the Bengali race has (says the "Times") lost a son of exceptionally high character and brilliant achievement.

Coming from an obscure village in the Burdwan district, he was educated at the Presidency College, Calcutta, and was invariably at the head of every examination list in which he competed, taking the M.A. degree with first class honours at the age of twenty-one. In the following year he was enrolled as an advocate of the Calcutta High Court, and with remarkable rapidity became the acknowledged leader of the vakil bar. He was eminently fitted for the Tagore Law Professorship of the University to The death took place in Kelso with startling only skilful in the practical application of the which he was appointed in 1876, for he was not suddenness, on 18th March 1921, of Mr principles of law, but was a jurist of deep learnAlexander Lunan M'Gregor, solicitor, a partnering and original turn of mind. His standard in the firm of P. & J. Stormonth Darling.

THE LATE MR A. L. M'GREGOR,
SOLICITOR, KELSO.

work on the "Law of Mortgage," like his public speeches, indicated the wide extent of his readbent of his scholarship. He served for a triennial ing, the tenacity of his memory, and the literary term on the Bengal Legislature, and for two where he did much to raise the level of Indian separated terms on the Supreme Legislature, contributions to the debates.

Dr Ghose he received the D.L. of his uni

Mr M'Gregor, though he had not been in his Mr M'Gregor, though he had not been in his usual vigour for a week or two, had not been in the doctor's hands nor had he been absent from business. He was suddenly seized with illness in the office, and passed away in a few minutes. Born in 1865 at Alyth, Mr M'Gregor received his early education, both general and legal, in his native town, where he entered the office of the late Mr W. S. Wilkie, a former versity in 1884 and the honorary doctorate of town-clerk of Alyth. Proceeding to Edinburgh, philosophy in 1913-was associated with the he was apprenticed to the late Mr Hugh J. Indian National Congress movement in its conRollo, W.S., 14 Young Street, and in due course stitutional days, and was the president of the qualified as a law agent. After a period in the famous Surat session in 1907, when Tilak and his office of Messrs Graham, Johnston & Fleming, irreconcilable associates broke up the proceedings W.S., Edinburgh, in 1891 he entered the employ-before the presidential address could be delivered. ment of the late Mr Patrick Stormonth Darling, He was president at the Madras session in the Kelso, as managing clerk, and in 1911 was following year, and held out the olive branch assumed as a partner by the late Mr Stormonth to "the wayward wanderers" who had treated Darling and the latter's two sons, James and him so despitefully at Surat.

Robert.

Mr M'Gregor was a man of a reserved disposition; he never coveted a prominent position in local, public, or municipal affairs, and he held no public office at the time of his death, but he was universally honoured and respected not only by those clients who received the benefit of his sound judgment, experience, and skill, but also by the community of the important agricultural centre in which his business and private life was spent. Mr M'Gregor took no part in politics. He was an elder of the East United Free Church, Kelso. In his earlier years he was an enthusiastic cyclist, and explored most of the Border country in the summer in this manner, but in later years his chief recreation was found in the milder exercise of bowls. He never was converted to the Border love for the fishing-rod. Mr M'Gregor is survived by a widow and two children.

His real interests were in law and education, and from his large fortune he made munificent gifts to his university for post-graduate teaching, the provision of a college of science, travelling scholarships, and other purposes. He leaves no children, and his will largely supplements the educational benefactions of his lifetime. Though he had travelled a good deal in Europe, he never adopted Western dress, and adhered to the chapkan and choga of Bengal. As Sir Valentine Chirel wrote in his "Indian Unrest," the English Bar itself has produced few greater lawyers.

EDITORIAL NOTE.-The Editor will be pleased to consider Articles on Legal Subjects, and will welcome any suggestions from Subscribers which will serve to make the S.L. T. more useful to the Bar or Profession.

THE SCOTTISH PROFESSIONAL

ASSISTANTS' SOCIETY.

five years. The total sickness, disablement, and maternity benefits paid to members during the six years prior to the date of the valuation amounted to £1696, 4s. 8d.; the sum available for additional benefits is thus in this case also considerably in excess of the sum required to meet the whole cash benefits-assuming they remain at the same low level as in the past.

assets of the branch amount to £55,255 and the liabilities-again estimating claims at their highest-to £52,187, leaving a surplus of assets It will be of much interest to the profession over liabilities amounting to £3068. The to peruse the following summary of reports on valuer recommends that of this, £913 be carried the valuations of the two branches of the forward, leaving £2155 as now available for disScottish Professional Assistants' Society as attribution as additional benefits during the next 31st December 1918, which have just been issued. The society, which has an exceptionally strong legal membership, commenced operations on 15th July 1912, on the coming into force of the National Insurance Act 1911, so that the reports deal with a period of six and a half years. The report on the valuation of the central body (head office branch) shews that during that period 7635 members joined the branch as new entrants and 207 transferred to it, a total of 7842. During the period, 181 members died, 66 transferred, and 1829 ceased to be insured-leaving a net membership of 5766 at the date of the valuation. The benefit fund account for the period shews receipts amounting to £51,485, 17s. 54d., and payments amounting to £18,574, 16s. 8d.-leaving a balance at the credit of £32,911, Os. 94d. Of the payments, £6172, 10s. 7d. was paid to insurance committees for medical and sanatorium benefits to members, while the payments to members were as follows: Sickness benefit, £5034, 6s. 9d.; disablement benefit, £1459, 14s. 4d.; and maternity benefit, £518, 10s. The assets of the branch at the date of the valuation are shewn to amount to £171,044, and the liabilities (estimating the liability for future benefits at the highest possible figure) to £160,778 leaving a surplus of assets over liabilities of £10,266. The Government valuer recommends that, of this surplus £3091 should

The period covered by the valuation was not, on the whole, a particularly favourable one for the society, as the bulk of its male, and a large number of its female, membership was engaged during the war in one or other branch of H.M. Forces. The contribution income from these members during that period was less than half of the normal rates. It is clear that, looking to the facts applicable to the past six years, the valuer has made ample provision for all possible contingencies and that the society is in an exceptionally strong financial condition.

The committees of management of the branches are at present considering as to the most satisfactory methods of disbursing the available surpluses for the benefit of their members.

LAW LIBRARY.

BOOK NOTICES.

S.S.C., and Edited by James Keith, M.A.,
LL.B., Advocate. Third Edition. 1921.
Edinburgh: W. Green & Son Ltd. Price
21s. net.

be carried forward-leaving £7175 available for The Scottish Licensing Laws. By James Purves, distribution in additional benefits during the five years commencing on 4th July next. As the total of the sickness, disablement, and maternity benefits paid to members for the six years prior to 31st December 1918, during which the benefits were in operation, only amounted to £7012, 11s. 1d., it will be seen that the disposable surplus exceeds the sum required to meet the whole ordinary benefits.

As regards the Glasgow and West of Scotland branch the position is equally satisfactory: 2270 members joined the branch during the valuation period, while 83 transferred into it. Fifty-one members of the branch died, 12 transferred, and 479 ceased to be insurable-leaving at the date of the valuation 1811 members. The benefit fund account shews receipts amounting to £15,002, 5s. 6d., and expenditure of £4863, 4s. 1d.-including £1762, 9s. 9d. to insurance committees for medical and sanatorium benefits, £1243, 10s. 6d. of sickness benefit, £280, 14s. 2d. of disablement benefit, and £162 of maternity benefit. The sum at the credit of this account is therefore £10,139, 1s. 5d. The

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On its first appearance in 1896 Mr Purves' book on "Licensing Laws" was at once welcomed as a useful and practical guide to a difficult subject. Now that the tangle of laws, bye-laws and regulations has become infinitely more complex, this new edition prepared by Mr Keith may be assured of no less welcome. The interesting and valuable parts of the earlier editions, such as the historical introduction and the full commentary on the Act of 1903, retain their places; but there are added to these, not only the Temperance (Scotland) Act 1913, but also Orders issued by the Central Control Board and Beer and Spirits Restriction Orders in so far as these are still in force. Decisions of the Courts on all these have been carefully collected, and the existing transitional state of the law is thus fully expounded. It is unfortunate that the law so carefully treated in

this volume should be in such a transitional stage and the uncertainties of the future course of legislation so great; but many a lawyer, perplexed by the multiplicity of its provisions, will be thankful for the careful guidance supplied to him by author and editor.

Powell's Principles and Practice of the Law of Evidence. Tenth Edition. By Wm. Blake Odgers, K.C., and Walter Blake Odgers, Barrister-at-Law. 1921. London: Butterworth & Co. Price 35s. net.

When the late Mr Edmund Powell published his book on the "Law of Evidence" in 1856, the learning and conscientious care of the author brought their reward in the appreciation of the legal profession evidenced by the demand for further editions of the work. This, the tenth, edition is calculated fully to maintain the reputation of the author. The ever-growing body of case law and statute has been woven into the original scheme and arrangement with a skill which does credit to the editors. The treatise will remain, as it has been for well over half a century, the practitioners' guide. While not competing in philosophic grasp of the principles of probation with the great American works on evidence, it contains an exhaustive and lucid exposition of the existing English law, and its full citation of authorities renders it invaluable to the student and the pleader alike.

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States to the League of Nations, which received considerable prominence in the press and well deserves a more permanent record. Another paper worthy of special notice is that in which Mr W. S. M. Knight gives the results of a careful study of the ancestry and family of Hugo Grotius. Many other papers go to fill a volume which does great credit to one of the youngest of our learned societies.

JOINT-STOCK COMPANIES IN SCOTLAND. The following have been registered for week ending 18th March:

11650-M'Ghee Ltd., 75 Buchanan Street, Glasgow (private company), to acquire property, concessions, rights, etc., and to carry on the business of mechanical and electrical engineers, founders, etc. Capital-£5000 in £1 shares.

11651-Invergordon and Black Isle Auction Co. Ltd., to

take over the Cattle Mart in Outram Street, Invergordon, belonging to Peter William MacCallum, live stock agent, Dingwall. Capital -£5000 in £1 shares.

11652-Anderson & Reid Ltd. (private company), to carry on the business of iron and steel founders. Capital-£20,000 in £1 shares. Subscribers: James and William Anderson, ironfounders, Broomloan Foundry, Woodville Street, Govan. 11653-Campbell & Sellar Ltd., 31 Dee Street, Aberdeen (private company), to carry on business as motor hirers, manufacturers of cycles, motor cycles, carriages, motor carriages, etc. Capital-£5000 in £1 shares.

11654 Ardgowan Picture House Ltd., to acquire the picture house business carried on by the Salon (Greenock) Square, Greenock. Capital-£12,000 in £1 shares. Ltd. in The Salon Picture House, St George's Hall, George

11655-William Rankin Ltd., 39 St Vincent Street, Glasgow (private company), to carry on the business of an investment company. Capital-£100 in £1 shares.

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11656-The Glenisla Steamship Co. Ltd., 39 Dock Street, Dundee (private company), to carry on the business of shipowners, and to purchase the steamship Bonn" and change its name to "Glenisla." Capital-£20,000 in £1 shares. 11657-Donald Brothers Ltd. (private company), to acquire the business of merchants and manufacturers carried on by Donald Brothers at James' Park Factory, 98 Albert Street, Dundee, and in London. Capital-£40,000 in 17,750 9 per Cent. Cumulative Preference shares of £1, 22,000 Ordinary shares of £1, and 5000 Employees' shares of 1s.

11658-James Mutch Ltd., 24 Broad Street, Aberdeen (private company), to acquire the business of James Mutch, wholesale and retail ironmonger, at above address. Capital

-£10,000 in £1 shares.

11659-Rustproofers (Scotland) Ltd. (private company), to carry on the business of galvanisers, metallurgists, japanners, electro-platers, mechanical engineers, etc. Capital£10,000 in £1 shares.

Five joint-stock companies were registered in Scotland for

week ending 25th March:

11660-The Diamond Engineering Co. (Glasgow) Ltd., 55 West Regent Street, Glasgow (private company), to carry on the business of mechanical engineers, metal workers, ironfounders, toymakers, etc. Capital-£6000 in £1 shares.

11661-Waddell & Brown Ltd., 23 Royal Exchange Square, Glasgow (private company), to carry on the business of merchants, manufacturers, weavers, spinners, etc. Capital£5000 in £1 shares.

Edinburgh (private company), to acquire the business of James Dun Quin, pawnbroker, jeweller, and general merchant, Edinburgh. Capital-£5000 in £1 shares.

11662-William M. Quin & Son Ltd., 18 Duke Street,

11663-The Saint Andrew Square Picture House Ltd., to acquire certain heritable subjects in Clyde Street, St Andrew Square, Edinburgh, known as the Royal (Dick) Veterinary College, and to carry on the business of caterers of public entertainments. Capital-£25,000 in £1 shares.

11664-Moser & Bester Ltd. (private company), to carry on business as dealers and preservers of eggs, commission agents, grocers, provision and produce merchants and importers. Capital-£5000 in £1 shares. The subscribers' addresses are in Glasgow.

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