11 Jul 1996
THE COMMISSIONER OF INLAND REVENUE v. COSMOTRON MANUFACTURING CO LTD
- Citation
- THE COMMISSIONER OF INLAND REVENUE v. COSMOTRON MANUFACTURING CO LTD
- Court
- Court of Appeal
- Case number
- CACV75/1996
By majority the Court held that severance payments (including those made on cessation) were deductible under IRO s.16(1) because the liability to pay them arises as an unavoidable consequence of employing a workforce and was incurred in the production of profits; payments made during the basis period therefore qualify as expenses incurred in producing assessable profits.