The company sought to set off against income tax, ex gratia payments it had made to employees as the business closed.
Held: Rowlatt J said: ‘Now I cannot conceive how, under those circumstances, there can be any evidence at all that the payments were made for the purpose of the trade, because that must mean for the purpose of keeping the trade going, and of making it pay. There was not any such purpose at all. The purpose was to wind it up …’
Judges:
Rowlatt J
Citations:
(1925) 12 TC 803
Cited by:
Cited – Commissioner of Inland Revenue v Cosmotron Manufacturing Company Limited PC 28-Jul-1997
(Hong Kong) The taxpayer company was winding down its business. As it closed it made substantial redundancy payments to its employees. The Commissioners rejected a suggestion that such payments could be set off against income, saying that the . .
Lists of cited by and citing cases may be incomplete.
Income Tax
Updated: 01 May 2022; Ref: scu.236732