Where tax is taken into account in assessing damages for loss of earnings, regard may be had to the extent to which the plaintiff could legitimately have reduced his tax liability by, for example, in the 1956 case of Beach v Reed Corrugated Cases Ltd, covenanting to pay portions of income to relatives (for which a tax deduction could then be obtained)1. The plaintiff's prospects of being able to unlawfully evade payment of tax on the earnings are of course not taken into account. The failure to declare the earnings for tax purposes does not, of itself, defeat the claim to damages in respect of the loss of them, but credit must be given for the tax which
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 17:42