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.