| Employment Income: Emoluments |
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honour a promise made to B by the father of X and Y that the father would leave the shares to B by will and so not B’s taxable emolument. Since the test was one of causation the court could look at all the circumstances. |
14A.1.4.3 Another Cause |
As seen above, a payment caused by something other than services must escape tax. Moreover the onus is on the Revenue to show that the payment is an emolument.20 |
14A.1.4.4 Multiple Causes |
Where a payment is caused both by service and by something else, principle would suggest an apportionment of the payment, at least where this is practicable.21 Whether there will be an apportionment if the sum is paid for two causes, neither of which can be valued, remains unclear.22 |
14A.1.4.5 Payment by Non-Employer |
Just as a payment by an employer may not be an emolument, so a payment by someone other than the other party to the contract of employment may be an emolument.23 |
14A.1.5 Services Past |
The liability to income tax of payments for services past was left open by Viscount Simonds in Hochstrasser v Mayes but in the light of the words of Lord Templeman in Shilton v Wilmshurst such payments will be taxable if they are also intended as an inducement to continue to perform future services. It has been held that a tip to a taxi driver is taxable even though given only at the end of the service.24 A bonus payment to an employee25 and a payment on completion of, say, 25 years’ service with the company26 are taxable, although in these cases, since the employment had not yet terminated, the payments may be seen as incitements to even greater service and |