Between: Van den Berghs Ltd - Appellant
And: Clark (Inspector of Taxes) - Respondent

Judges: Lord Atkin
Lord Tomlin

Lord Russell of KillowenLord MacMillan
Lord Wright

Subject References:
REVENUE
INCOME TAX
Agreement between Trade Rivals
Sum paid to terminate
Capital or Profits of Trade

Legislative References:
Income Tax Act, 1918 (8 & 9 Geo. 5, c. 40) - Sch. D, Case 1

Judgment date: 8 April 1935

Judgment by:
Lord Russell of Killowen

(Lord Atkin:) My Lords, I have been asked by my noble and learned friend Lord Russell of Killowen to say that he has read the opinion which has just been delivered, and that he agrees with it.

Cyril King asked their Lordships for a direction as to the rate of interest which should be paid upon the tax now repayable to the appellants under the judgment of the House, explaining that down to the date of the order of the Court of Appeal, June 28, 1934, payment and repayment of the tax had carried interest at 4 per cent.; but that lately, on April 5, Finlay J. had made an order for payment of tax with interest at 31/2 per cent.

(Lord Atkin:) On this occasion the rate of interest should be 4 per cent. The House is not laying down any general rule. This direction is given simply because in this particular case on other occasions that is the rate at which interest has been paid.

Order of the Court of Appeal complained of reversed and judgment of Finlay J., thereby set aside, restored: Ordered that the respondent do pay the appellants the costs incurred by them in the Court of Appeal and repay to the appellants the amount of the tax paid by them to the respondent together with interest thereon at the rate of 4 per centum per annum as from July 1, 1932, to March 22, 1934, inclusive, and also as from July 20, 1934; Further ordered that the respondent do pay to the appellants the costs incurred by them in respect of the appeal to this House: Further ordered that the cause be remitted back to the King's Bench Division of the High Court of Justice, to do therein as shall be just and consistent with this judgment.

Lords' Journals, April 8, 1935.

Solicitors for appellants: Goulden, Mequita & Co.

Solicitor for respondent: The Solicitor of Inland Revenue.