PC New Zealand – The taxpayer company agreed to acquire the assets and undertaking of a business. As a part of the consideration for the acquisition of the business, it agreed to take over certain liabilities, including certain of the vendor’s contractual obligations to its employees. These included their vested or contingent entitlements to paid leave, attributable to their service with the vendor. The question is whether the subsequent payment of these sums was deductible for the purposes of calculating the company’s profits assessable to income tax.
[2000] UKPC 22, [2000] 1 WLR 1755
Bailii, PC, PC
England and Wales
Updated: 12 August 2021; Ref: scu.163235