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