Inland Revenue v. Strang

At a meeting of the Commissioners for General Purposes for the Kintyre district of the County of Argyll, under the Property and Income-Tax Acts, held at Campbeltown on 25th January 1878, the Rev. George Walter Strang, minister of the second charge of the parish of Campbeltown, appealed against an assessment of £100, for 1877–78, made upon him under Schedule E of the income-tax, in respect of a sum paid to him in the following circumstances, and alleged to be an emolument of his office:—

It was admitted on behalf of the appellant that since he had come to Campbeltown, about three years before, he had received at each Christmas time a pecuniary gift from his congregation of £100, as a token of their regard for him, and that at Christmas 1877 he had received this gift, which was raised by voluntary subscription among his friends—the majority being members of the congregation. The appellant had granted no receipt, the contributors were under no obligation whatever to repeat the gift, and it might never be repeated.

The appellant contended that the gift formed no part of his income within the meaning of the Income-Tax Acts. He paid income-tax on his stipend, glebe, rents, &c., being the full amount of the profit derived by him from his public office or employment as a minister of Campbeltown parish. The gift did not follow the office, nor did it fall under any of the descriptions given in the Act as “salaries, fees, wages, perquisites, or profits whatsoever accruing by reason of such offices or employments.”

The Commissioners sustained the appeal, and relieved the appellant, whereupon the Surveyor craved a case for the opinion of the Court of Exchequer, which was granted.

No appearance was made for the Rev. Mr Strang, and after hearing counsel for the Surveyor, the Lord Ordinary in Exchequer ( Curriehill ) on 14th June 1878 found that the determination of the Commissioners was wrong. He added this note to his interlocutor:—