Tan How Teck


The adoption of the Gourley principle and its corollary, the Gourley‐in‐reverse principle, in the UK and Australia are first examined to set the context. The paper then discusses some practical tax difficulties of applying the Gourley principle in Singapore, and suggests how to reasonably estimate the plaintiff’s tax liability in order to give effect to the principle. The paper finally comments that the approach in Singapore of simply ignoring taxation in cases where the lost profit and the damages are taxable is preferable to the alternative of adjusting the damages for any difference in tax liabilities on both sides.