Deductibility Of Expenses

Deductibility of expenses KH Ltd v Comptroller of Income Tax The plaintiff in error was a company listed on the SGX. On 1 declination 1999, its managing director was dismissed for embezzlement of the companys funds. The misappropriation was as a soldiers issue of cheques issued to the managing director to return him for satisfying false buy sites and aver loans to customers to finance their acquire of bearings from the appellate. Arising from the misappropriation, the appellate made a preparedness for doubtful debts of $12,410,141, inclusive of a dismission of $12,272,917 in its accounts. As the appellant was unable to recover the amount misappropriated, the appellant lodged an break or faulting claim on a lower floor s 93A of the Act. The respondent made a determination that the relief could non be granted, on the buttocks that in that location was no error or faulting within the meaning of s 93A. The issue in this flake is that whether deduction is allowable or not. It was held that the appeal was dismissed. From my opinion, there is no basis or provision 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 impart 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 prop company, with nine direct and octet indirect subsidiaries in the division of assessment (YA) 2002 and YA 2003. In those alike years, the appellant obtained (among other facilities) brusque term loans from financial institutions to finance its business activities and that of its subsidiaries, as well as lent or advanced bullion to its subsidiaries. virtually of the loans and advances to its subsidiaries were interest-bearing and some were interest-free. whatever subsidiaries were dormant or had ceased operations; and no details were impersonateable on which subsidiaries received...If you essential to get a full essay, order it on our website: Ordercustompaper.com

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