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Update - tax cases

16 October 2005
Categories: Tax cases
William Grant & Sons Distillers Ltd v CIR; BUPA Purchasing Ltd and others v HMRC; Indofood International Finance Ltd v JP Morgan Chase Bank; Dragon Futures Ltd v HMRC; Doyle (SpC 499)

Whisky galore

William Grant the distiller and blender of Scotch whisky held stock for between four and 18 years. Depreciation of the plant and machinery used was deducted as a cost of making the whisky with depreciation in stock added back in and carried forward. In computing the profits TA 1988 s 74(1)(f) did not allow any deduction in respect of any capital withdrawn from or any amount used as capital in the trade. Thus the company could not deduct the depreciation of fixed assets. In 1995 the Revenue agreed that the amount of depreciation that should be added back for tax should be the net amount debited to profit and loss not including the amount for depreciation in stock and that there would be a cut-off point so that all stock not sold would be adjusted after 12 years...

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