COLLINS (H.M. INSPECTOR OF TAXES) v JOSEPH ADAMSON AND CO.(1)JOSEPH ADAMSON AND CO. v COLLINS (H.M. INSPECTOR OF TAXES)(1) (1935-1938) 21 TC 400
NO. 1056–HIGH COURT OF JUSTICE (KING’S BENCH DIVISION)–
19TH AND 20TH OCTOBER, 1937
Income Tax, Schedule D – Profits of trade – Deduction – Payments to trade association – Expenditure to prevent sale of business of member of association to non-member – Expenditure to acquire control of business of non-member – Whether income or capital expenditure.
The firm of Joseph Adamson and Co. carried on business as boilermakers and was a member of a trade association formed to maintain prices by a pooling scheme. In the firm’s accounts all payments to the association were debited and all sums received from it were credited.