21 Nov 1995
THE COMMISSIONER OF INLAND REVENUE v. COSMOTRON MANUFACTURING CO. Ltd.
- Citation
- THE COMMISSIONER OF INLAND REVENUE v. COSMOTRON MANUFACTURING CO. Ltd.
- Court
- Court of First Instance
- Case number
- HCIA1/1995
Severance payments ordered by statute are deductible under s16(1) IRO because the employer incurred the liability as an unavoidable cost of conducting the business for the purpose of producing profits; the liability is an accrued obligation incurred in the production of profits and not incurred for the purpose of closing the business.