| 6/1/2009 |
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| Board of Special Commissioners - Cases |
| Case No. 32/66 |
Decided: 6 March, 1969 |
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Expenses incurred in clearing up business matters after ceding a going concern are not deductible
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After ceding his agency, appellant did not purchase any stock but endeavoured to recoup monies that were owned to him by creditors. In those cases where he failed to be paid he agreed to take back the merchandise from which, however, he made no profits. This notwithstanding, he retained the use of an office and a car and claimed that such expenses should be deducted from interests he earned on monies lent to third parties.
The Board agreed with Revenue's decision that, not being an authorised money-lender, the interests earned by appellant could not be considered as profits derived from an act of trade. Nor were any profits derived from the disposal of merchandise he got back from his former creditors. The expenses claimed were not incurred "wholly and exclusively" in the production of income from interests or the disposal of the merchandise on which source, in any case, he did not register any profits. They were not, therefore, deductible.
An appeal was entered before the Court from this decision (see case no. 75).
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