Commentary

B2.322 Expenditure intended to benefit the trade in the future

Business tax
Business tax | Commentary

B2.322 Expenditure intended to benefit the trade in the future

Business tax | Commentary

B2.322 Expenditure intended to benefit the trade in the future

If the requisite purpose for incurring the expenditure is established, there is no further enquiry into whether that expenditure actually produces or increases profits. The fact that the expenditure can only produce a return in the future, if at all, does not prevent its being incurred for the purposes of the trade. In Vallambrosa Rubber Co Ltd1, one-seventh of a rubber estate was, in the year in question, in the production stage, the other six-sevenths being still in process of cultivation towards reaching that stage. It was held, nevertheless, that the whole of the expenditure for the superintendence of the

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