Raymond Yeung Tax Consultant former Assessor of Inland Revenue Department 前稅局評稅主任楊輝洪

飛鴻稅務顧問  Qualifications   出版書目  

Tel /WhatsApp /WeChat 94735846  *email: yeungfhr@qq.com  

Service charge $500/hr *Hang Seng Bank Account: 385 599279 883 *Payment thru mobile phone: PayMe / FPS轉數快 Yeung Fai Hung *會面:上水廣場5樓太興餐廰  *報稅分析 *稅務咨詢 *記帳系統 *業務報稅 *稅務課程

 

Profits Tax - Expenditure for ceasing the business

In the case Basssett Enterprise versus Petty 21 TC 730, the company made certain payments to employees to release the company from their service agreements. It was held that such payments were not made “for the purpose of the trade” and hence not deductible. The court ruled that as these arrangements were part of an agreement for selling the majority of the company shares to a prospective purchaser, the expenditure was not made for the purpose of the trade, but in the interest of the purchaser.

However in the case CIR versus Swire Pacific Ltd. HKTC 1145, the wages paid to workers who went on strike to protest a merger was held to be deductible. Press here for more of the case. It should be noted that in the Swire case the payment was to enable the company to go on for some time before the cessation of business.   

In the case CIR v Cosmotron Manufacturing Co. Ltd. 4 HKTC 562, the Privy Council held that the severance paid in accordance with employment law on cessation of business is deductible.

Because of the different court judgments, it seems that the deductibility of cessation expenses is far from clear. In my opinion, if the amount in question is large, it is advisable to pursue the claim and seek professional advice.      

 

楊輝洪 Raymond Yeung 為你提供:

 

* 稅務顧問服務 * 飛鴻作品下載 * 寫好英文信件 * 基礎法律知識 * 實用稅務課程 * 英文速成課程 * 見工英語速成 * 中英文寫作服務 * 電腦會計記帳系統

 

 

email: yeungfhr@qq.com

Tel /WhatsApp 94735846

 

 

My Performance Pledge QEEP

My Curriculum Vitae/resume

Value for Money, for sure!

Why you must own my CDR 

Why my service fee is so low

 

 

 

 

香港稅務課程 Practical Taxation Course

教授實用税務及報稅知識

Private tuition of Hong Kong Taxation of Law and Practice

$900 兩小時,單對單教授,:香港稅務知識加強版香港報稅軟體

報讀者可在一年內免費電話咨詢一次  詳情按此