Commentary

V7.357 Partial exemption special methods—when a special method should be requested

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.357 Partial exemption special methods—when a special method should be requested

Part V7 Tax planning | Commentary

V7.357 Partial exemption special methods—when a special method should be requested

The reason that a partly exempt business would consider a special method of calculation is solely due to the fact that it considers the standard method does not give a fair and reasonable result in terms of input tax recovery on residual expenditure.

In cases where it considers that the standard method is unfair, the approach of the taxpayer (or his adviser) should be as follows:

  1.  

    •     identify why the standard method is considered to be unfair

  2.  

    •     consider alternative methods of calculation that would give a fairer result

  3.  

    •    

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