Deductibility Of Expenses

Deductibility of expenses KH Ltd v Comptroller of Income Tax The appellate was a company listed on the SGX. On 1 declination 1999, its managing director was dismissed for misapplication of the companys funds. The defalcation was as a force issue of cheques issued to the managing director to recuperate him for satisfying false leverage companionships and aver loans to customers to pay their purchase of bearings from the appellant. Arising from the misappropriation, the appellant made a preparedness for doubtful debts of $12,410,141, comprehensive of a wrong of $12,272,917 in its accounts. As the appellant was unable(p) to recover the amount misappropriated, the appellant lodged an break or erroneousness claim on a lower floor s 93A of the Act. The respondent made a determination that the relief could not be granted, on the alkali that in that location was no error or erroneousness within the meaning of s 93A. The issue in this character is that whether deduction is allowable or not. It was held that the appeal was dismissed. From my opinion, there is no basis or formulation for grossing up under some(prenominal) the ITA and PITA. Accordingly, the losses were not allowable under sec. 14 (1).

The loss sustained by the appellant as a endpoint of its ex-managing directors misappropriation was not attached with or arising out of the trading activities of the appellant. FFHM Bhd v Ketua Pengarah Hasil Dalam Negeri  The appellant was an coronation property company, with nine direct and eight-spot indirect subsidiaries in the socio-economic class of assessment (YA) 2002 and YA 2003. In those equal years, the appellant obtained (among other facilities) in short term loans from financial institutions to finance its business activities and that of its subsidiaries, as healthful as lent or advanced bullion to its subsidiaries. just about of the loans and advances to its subsidiaries were interest-bearing and some were interest-free. just about subsidiaries were dormant or had ceased trading operations; and no details were in stock(predicate) on which subsidiaries received...If you essential to queer a full essay, order it on our website: Ordercustompaper.com

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