RHYMNEY IRON COMPANY, LIMITED, v FOWLER (Surveyor of Taxes).(1) (1890-1898) 3 TC 476
NO. 188.–HIGH COURT OF JUSTICE (QUEEN’S BENCH DIVISION),
13TH MAY 1896.
Income Tax.–Profits.–Deduction.–Colliery.–Subscription. – A colliery company are members of a Coal Owners Association, to which they pay a subscription based on their output of coal. The object of the Association is to pay its members an indemnity in the event of deficiency or stoppage of output being caused by strikes, & c.
Held, that the subscription is not money laid out for the purposes of the trade, and is therefore not admissible as a deduction in arriving at the profits assessable.