HIGH COURT OF JUSTICE–

14TH AND 15TH JANUARY, 1952

Income Tax and Profits Tax – Profits of trade – Deduction – Sum paid in settlement of claim for damages and compensation.

  The Company was a gold-mining concern which in 1934 and 1935 entered into transactions connected with the formation of other companies. The profits from these transactions were included in subsequent Income Tax assessments. In 1941 and 1942 civil actions were brought against the Company in connection with the formations, and the Company paid £25,000 to settle the actions. Legal costs were also incurred.

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