Case I Deductions

04/10/1995

Query

Whether interest on a loan to finance the payment of income tax is allowable

Decision

Such interest is not allowable. It is not wholly and exclusively laid out for the purposes of the trade.

Income Tax

Section 81, Taxes Consolidation Act, 1997

Origin: RLS Division

File ref:IT952561


10/10/1995

Query

Whether professional fees incurred in coneection with a tax appeal are deductible.

Decision

Such fees are not deductible. Normal recuring professional fees incurred in preparing accounts or agreeing liabilities are allowable.

Income Tax

Section 81, Taxes Consolidation Act, 1997

Origin: RLS Division

File ref:IT952564


01/02/1996

Query

Whether, in a trade or porfession, interest paid on borrowings used to fund drawings is allowable

Decision

Where a capital account is in a debit position and the debit balance arises from an excess of drawings over profits available to fund those drawings, the interest portion of the bank borrowings used to fund the deficit is not allowble..

Income Tax

Section 81, Taxes Consolidation Act, 1997

Origin: RLS Division

File ref:IT962501




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