Customary office-related payments treated as remuneration when recurring by virtue of the recipient's office, thus taxable under Schedule E.

Whether voluntary seasonal payments constitute taxable employment income is addressed by treating recurring customary payments as accruing to the office rather than as personal testimonials; the test is whether the sums are received by virtue of the recipient's office or employment. Where a longstanding custom regularly produces payments to the office-holder on specified occasions and contributors are linked to the office, those payments are prima facie remuneration attributable to the office. Individual deviations may be contested, but absent contrary evidence the recurrent customary character supports taxation as profits of employment under Schedule E.

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Issues: Whether voluntary Christmas payments made by followers and supporters of a hunt to its huntsman constitute "profits of his employment" under Schedule E and are therefore taxable.

Analysis: The facts show a long standing, widespread custom in the relevant hunts of giving cash presents to the person for the time being holding the office of huntsman at Christmas (usually on Boxing Day), with regular annual payments from the date of the appellant's engagement. The legal test applied is whether, from the standpoint of the recipient, the sums accrue to him by virtue of his office or employment rather than as mere personal gifts or testimonials. Established authorities distinguish payments made in the recipient's capacity as office holder from payments given on purely personal grounds; where a custom exists that regularly produces payments to the office holder at specified occasions, such payments are prima facie made pursuant to that custom and received by the holder in his capacity as such. Individual payments inconsistent with the custom could be contested by the recipient, but absent evidence of such distinction, the recurrent customary character and the contributor profile support treatment as remuneration attributable to the office.

Conclusion: The Christmas payments were received by the huntsman by virtue of his office or employment and therefore constitute profits of his employment for the purposes of Schedule E; the appeal is dismissed and the assessments in favour of the Crown are upheld.

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