Commentary

B1.437 Mutual trading by companies

Business tax
Business tax | Commentary

B1.437 Mutual trading by companies

Business tax | Commentary

B1.437 Mutual trading by companies

The mere fact that a mutual concern is incorporated as a company does not destroy the element of mutuality1, and consequential non-liability to tax.

This principle was established in Jones v South-West Lancashire Coal Owners' Association Ltd2. The association was incorporated under the Companies Acts and was limited by guarantee. Its purpose was the indemnifying of only its members (who were all coal owners) against liability for workmen's compensation. The association's funds were built up from contributions by the members in proportion to the wages they paid. Calls were made upon the members for the payment

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