COMMISSIONERS OF INLAND REVENUE v. LAURENCE PHILIPPS & CO. (INSURANCE), LTD.

(1946) 80 Ll.L.Rep. 549

KING'S BENCH DIVISION.

Before Mr. Justice Atkinson.

Revenue - Excess Profits Tax - Assessment - Underwriting agents - Advances by agents - "Debts due to the person carrying on the business" - "Capital employed in the business" - Company carrying on business as underwriting agents at Lloyd's - Formation of marine and non-marine syndicates, company to act as agents - Advances made by company to A. and B. (associated with company) to enable them to qualify as underwriting members of Lloyd's and as "names" in, syndicates - Loans repayable out of profits accruing to A. and B. as "names" - Profits resulting from use of moneys loaned to A. and B. included in assessment of company's profits - Computation of capital - Contention by company that such loans were made by company in the furtherance of their business, and that the debts owing to the company in consequence of the making of such loans formed part of the capital employed in the company's business - Submission by Crown that such debts were not capital employed in the company's business; alternatively, if employed in the company's business, that they were investments - Finance (No. 2) Act, 1939, Sects. 13(3), 14(2), Seventh Schedule, Parts I and II.