Deductibility Of Expenses

Deductibility of expenses KH Ltd v Comptroller of Income Tax The appellant was a lodge listed on the SGX. On 1 December 1999, its managing director was push aside for defalcation of the companys funds. The misappropriation was as a military issue of cheques issued to the managing director to reimburse him for satisfying specious purchase orders and aver loans to customers to finance their purchase of bearings from the appellant. Arising from the misappropriation, the appellant make a preparedness for doubtful debts of $12,410,141, inclusive of a evil of $12,272,917 in its accounts. As the appellant was unable to recover the step misappropriated, the appellant lodged an break or mistake claim on a lower floor s 93A of the Act. The respondent make a determination that the relief could not be granted, on the basis that in that location was no error or mistake within the meaning of s 93A. The issue in this case is that whether deduction is allowable or not. It was he ld that the appeal was dismissed. From my opinion, thither is no basis or provision for grossing up beneath both the ITA and PITA. Accordingly, the losses were not deductible under sec. 14 (1).

The loss sustained by the appellant as a result of its ex-managing directors misappropriation was not connect with or arising out of the trading activities of the appellant. FFHM Bhd v Ketua Pengarah Hasil Dalam Negeri  The appellant was an enthronement holding company, with nine direct and eight indirect subsidiaries in the year of assessment (YA) 2002 and YA 2003. In those same years, the appellant obtained (among otherwise facilities) short term loans from financial institutions t o finance its business activities and that o! f its subsidiaries, as well as lent or advanced capital to its subsidiaries. Some of the loans and advances to its subsidiaries were interest-bearing and some were interest-free. Some subsidiaries were dormant or had ceased operations; and no details were available on which subsidiaries received...If you natural to get a full essay, order it on our website: OrderEssay.net

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