Trading deduction - unbilled disbursements
22/05/1997
Query
Whether unbilled disbursements on behalf of clients can be deducted in the period in which paid
Decision
Where there are unbilled disbursements, there is no known liability in the majority of cases. The presumption is that the disbursement will be billed to the client on whose behalf it was incurred. In so far as it cannot be so billed or the client refuses to pay it the amount can be written off at that stage.
Income Tax
Section 81, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:IT972004B