Words and Phrases - "notwithstanding"

The taxpayer sold shares of a private company for a fixed price plus the right to receive an amount equal to one-half of any appreciation of the value of shares from the date of to the first day of public trading of the shares if there was a flotation of the company. The Crown assessed on the basis that there was a "disposal" by the taxpayer in the year of flotation pursuant to s. 22(3) of the Finance Act 1965 which provided that there was "a disposal of assets by their owners where any capital sum is derived from assets notwithstanding that no asset is acquired by the person paying the capital sum ...." Lord Fraser found that the right to receive the additional consideration was an "asset" (broadly defined to mean all forms of property), and that although the additional amount was paid to satisfy or extinguish such right and not as part of the consideration for the sale of the shares, such sum was clearly "derived from" such asset (the deferred right) and therefore was deemed to be received in connection with a disposal. Furthermore, with respect to a submission that the word "notwithstanding" meant that s. 22(3) did not apply where the payor of the sum did not acquire an asset, Lord Fraser -noted (at p. 99) that the word "notwithstanding" could mean "whether or not" and that it was a word of extension, not of limitation.