Snippets from The Reduced Law Dictionary by Roderick Ramage
Duke of Westminster’s case (old law)
The Duke changed his servants’ employment terms and instead of wages gave them annuities under seven year deeds of covenant, which he was entitled to deduct from his income. The HL held (1935), per Lord Tomlin: “Every man is entitled, if he can, to order his affairs so that the tax attaching under the appropriate Acts is less than it otherwise would be. If he succeeds in ordering them so as to secure this result, then, however unappreciative the Commissioners of Inland Revenue or his fellow taxpayers may be of his ingenuity, he cannot be compelled to pay an increased tax.”
Fraudulent and wrongful trading
Insolvency Act 1986 ss 213 (fraudulent) and 214 (wrongful). Both apply in the winding up of a company and a court order can make individuals personally liable to contribute to the company’s assets. Fraudulent trading applies to any person who was party to the conduct of the company’s business with intent to defraud creditors or any other person. Wrongful trading applies to a
