“…ord Wilberforce (with whose speech Lord Salmon, Lord Fraser of Tullybelton and Lord Russell of Killowen agreed) in Lord Chetwode v Inland Revenue Commissioners [1977] 1 WLR 248. Referring to section 712 of the Income Tax Act 1952 he asked, at 251, “what is meant by “income”?”, and continued:…”
“…yer’s business. That requires payments to the EBTs which were wholly and exclusively for the employer’s trade to be taken into account (see Lord Chetwode v IRC [1977] 1 WLR 248 at 253C-H).”…”
“…“As regards the Employer, the charge would be on his profits (see Lord Chetwode v Commissioners of Inland Revenue [1977] 1 WLR 248 and IRC v Brackett [1986] STC 521) and therefore would not include sums paid to the Trust.”…”