Brown v Bullock
| Jurisdiction | England & Wales |
| Judge | THE MASTER OF THE ROLLS,LORD JUSTICE HARMAN,LORD JUSTICE DONOVAN |
| Judgment Date | 26 June 1961 |
| Judgment citation (vLex) | [1961] EWCA Civ J0626-2 |
| Date | 26 June 1961 |
| Court | Court of Appeal |
[1961] EWCA Civ J0626-2
In The Supreme Court of Judicature
Court of Appeal
The Master of the Rolls (Lord Evershed)
Lord Justice Harman
Lord Justice Donovan
MR H.H. MONROE, Q.C. and MR MICHAEL MOLAN (instructed by Messrs. Preston & Naylor, Talbot House, Arundel Strect, W.C.2.) appeared as Counsel on behalf of the Appellant.
MR C.F. FLEFCMER COOKE, Q.C. and MR AANOER (instructed by the Solicitor of Inlaw revenue, Somerset House, Strand, W.C.2) appeared as Counsel on behalf of the Respondent.
: The question in this appeal calls for a decision upon the application to the facts in question of paragraph 7 of the Ninth Schedule to the Income Tax Act, 1952. The words of the paragraph are: "If the bolder of en office or employment of profit is necessarily obliged "to incur and defray out of the employment thereof the expenses of travelling "in the performance of the duties of the office or employment, or of keeping "and maintaining a horse to enable him to perform the sane, or othenrise to "expevd nancy wholly, or exclusively and necessarily in the porformance of the "expenses duties, there my be deducted on the oiaolumontc to be asesscd the licenses so necessarily incurred and defrayed."
The appellant in this court, Mr Brown, was appointed in the year 1949 According to the findings of the Midland Bank Ltd, in Pallo Mall Westminster. According to he findings of the General Commissioners he was instructed (and I will now quote from pargraph 3 of the Case), "that he must foster "roll contacts and the he should join the Club or Clubs best suited for "that purpose". The Case goes on to say, it might be thought somowhat deregatorily of the powers of selection on the part of the clubs, "Memberships "succeeding Manager as a matter of course." The paragraph proceeds: "If "a prospective Hanager refused to join a Club his refusal would not be "accepted without very good reason but would not necessarily mean that he "would lose the appointment, and it would be unlikely that a "Manager would be appointed who would refuge to join the appropriate "club or clubs."
Later, the case states that he, Mr Brown, in fact used the inventor Club, which is one of the clubs with which we are concerned, "for returning hospitality received by him from customers of the clubs with which we are concerned, "for returning hospitality received by him from customers of the Bank. "In addition he lunched there fairly freauently co that he edght keep "in touch with members of thew Club some of whom were customers of the Bank. "He heed it rarely for any other purpose."
I shall say something on that last sentence personality because Mr Brown said that in truth there was no cvidence that Mr Brown had was the club at all for any purpose other then these I earlior read.
Finally it is steted in the Case: "The Appellant was not a "clubean' and would be resigning his membership of the Devenshire "Club as seen as he retired but he hoped to retain membership of the "Royal Automebilc Club Country Club. What last scntonce introduces two well known clubs. In fact it seems that Mr. Brown had been for some time at any rate, before his appointment as manager of the Pall Mall Midland Benk a member of the Royal Automobile Club, the membership which he enjoyed being once which entitled him also to use the Country Club. That was matter personal amenity to himself because Mr Brown is in fact one who enjoys a game of golf, and he made use of his membership of the Royal Automobile Club to play golf at the club's country course.
Mis subsbsription in respect of the Royal Automobile Club was at all relevant dates 12 guincas. We were informed this morning that now member for which privilege the subscription is half, 6 guineas. The other club, the Devonshire Club in Jase's Strect, is in of which the subseription at the relevent dates was £21 per annum. It seems that the Bank paid in fact the full amount of the Devonshire Club's subscription and half the Royal Automobile Club subscription (that is, such part of the subscription as was not refereble to the Country Club), and it is not in doutt in this court that these payments should be trcated as part of Mr Brown's oneluments as manager of behalf of the Midland Bank.
The question is whether he can invohe the languege of paragraph 7 of the Minthy Schedule of the Act and treat the subscriptions as an expense necessarily incurred in the performance of Ms duties as Bank manager. It is the" words which I have emphasised in the last sentence upon which the whole matter hangs. On the facts as found is it true to say that the subscriptions (that is, the annual subscription to the Devonshire Club and half the subscription to the Royal Automobile Club), were expenses necessarily incur rod in the performance of Mr Brown's duties as Bank manager?
For the purposes of this appeal I think it unnecessary to make any distinction between the two clubs and I confine myself hereafter to Mr. Brown's membership of the Devonshire Club. The General Commissioners who heard the case concluded that Mr Brown had not made good his claim for exception. They said "that although the Appellant was necessarily "obliged to incur the expense of the Club subscriptions such expenditure "was not wholly exclusively and necessarily made in the performance of his "duties as a Bank Manager."
On appeal to Mr. Justice Danckworts (as he then was) the...
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