Chancery Division.

Vinelott J.

Judgment delivered 18 December 1989.

Income tax – Corporation tax – Undeclared earnings – Schedule E assessments on directors and corporation tax assessments on company – Inspector alleged cash diverted from company for living expenses – Assessments calculated on basis of cost of living index – Whether inspector entitled to calculate amount required by taxpayer to maintain standard of living by reference to cost of living index.

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