''Woolwich Equitable Building Society v Inland Revenue Commissioners''

993 Year 993 ( CMXCIII) was a common year starting on Sunday of the Julian calendar. Events By place Europe * Spring – The 12-year-old King Otto III gives the Sword of Saints Cosmas and Damian (also known as the Sword of Essen) as ...

AC 70 is an

English unjust enrichment law The English law of unjust enrichment is part of the English law of obligations, along with the law of contract, tort, and trusts. The law of unjust enrichment deals with circumstances in which one person is required to make restitution of a bene ...

case, concerning to what extent enrichment of the defendant must be at the expense of the claimant. The case related to tax demands that were later held in judicial review proceedings to be ultra vires, and therefore void. The Inland Revenue repaid the tax, but disputed their liability to pay interest on the money during the time which they had held it.

Facts

The Woolwich Building Society was charged £57 million in

tax A tax is a mandatory financial charge or levy imposed on an individual or legal entity by a governmental organization to support government spending and public expenditures collectively or to regulate and reduce negative externalities. Tax co ...

that it objected to as being assessed under a tax law which it alleged was ''

ultra vires ('beyond the powers') is a Latin phrase used in law to describe an act that requires legal authority but is done without it. Its opposite, an act done under proper authority, is ('within the powers'). Acts that are may equivalently be termed ...

''. It paid the sums on a " without prejudice" basis, and then sought judicial review with a view to reclaiming the tax. The House of Lords agreed with Woolwich. The revenue repaid the tax, but refused to pay any interest, which was agreed to be in the amount of £6.73 million. Under section 35A of the

Supreme Court Act 1981 The Senior Courts Act 1981 (c. 54), originally named the Supreme Court Act 1981, is an act of the Parliament of the United Kingdom. The act prescribes the structure and jurisdictions of the Senior Courts of England and Wales (previously known ...

interest would only be given at the court’s discretion if an entitlement to restitution of the principal could be made out. So because there was a dispute of the interest, the question was whether Woolwich was entitled as of right to restitution of the principal. The problem was a claim based on mistake could not succeed, because Woolwich argued it was ''ultra vires'' from the start. It was not duress, because the only threat by the Revenue would be to sue for non payment, and threatening to sue is legitimate pressure. Nor was it duress ''colore officii'' because the Revenue was not impliedly threatening to withhold performance of a duty owed to Woolwich.

Judgment

Lord Goff, Browne-Wilkinson and Slynn said that a demand for payment by a public authority ''

'' was a good ground for restitution itself, in essence a public law ground for restitution based on a constitutional principle of no taxation without Parliament. The

Bill of Rights A bill of rights, sometimes called a declaration of rights or a charter of rights, is a list of the most important rights to the citizens of a country. The purpose is to protect those rights against infringement from public officials and pri ...

article 4 says there should be no taxation without legislation. Lord Slynn said the mistake of law bar was ‘open to review by your Lordships’ House’. Lord Keith dissented. Lord Jauncey also dissented.

Notes

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References

* English unjust enrichment case law House of Lords cases 1993 in United Kingdom case law

Facts

Judgment

See also

Notes

References