Adventure in the nature of trade: club receipts from entry, licences and commissions were treated as business income for duty purposes.

Receipts from entrance fees, owners' entry fees, bookmakers' licence fees and totalisator commissions were treated as arising from an adventure or concern in the nature of trade, because the club admitted non-members, provided facilities for reward, and derived commission from betting-related activities. The character of the activity, not the destination of any surplus, was decisive; use of funds for charity did not affect liability. The club was therefore within the statutory concept of business for these receipts, and excess profits duty would apply if taxable profits were found on account-taking.

---

---

Issues: Whether the club's receipts from entrance fees, owners' entry fees, bookmakers' licence fees and totalisator commissions constituted a business or an adventure or concern in the nature of trade so as to attract excess profits duty.

Analysis: The charging provision applied to every business, and business included not only trade, commerce or manufacture but also any adventure or concern in the nature of trade, commerce or manufacture. On the facts stated, the club admitted non-members to its stands and enclosures, permitted owners to enter horses, licensed bookmakers for reward, and derived commission from totalisators. The decisive consideration was the character of the activity and the fact that money was received from non-members in exchange for facilities provided by the club. The destination of any surplus, including its use for charity, was immaterial to liability. The matter whether taxable profit actually arose in the accounting period remained for the Collector.

Conclusion: The club was carrying on an adventure or concern in the nature of trade and therefore a business within the Act in respect of the first four heads of receipt, and was liable to excess profits duty if taxable profits were found on accounts being taken.

---