27 Nov 1998
SECAN LTD. v. COMMISSIONER OF INLAND REVENUE
- Citation
- SECAN LTD. v. COMMISSIONER OF INLAND REVENUE
- Court
- Court of First Instance
- Case number
- HCIA3/1998
The court held that capitalisation of interest in the appellants' commercial accounts did not, on the agreed facts, establish that the interest had already been deducted for tax purposes in the earlier years; the accounts and tax computations showed no such deduction in the profit and loss or prior assessments, and s.16(1)(a) permits deduction when interest is incurred with resulting losses carried under s.19C(4); the Board erred in treating accounting capitalisation as equivalent to a statutory deduction and in refusing the appellants' claim.