Partners' removal expenses not a deductible expense
Article Abstract:
The UK House of Lords has ruled in favor of the Internal Revenue in the case of Ernst & Young's contention that reimbursement of certain removal expenses of partners required to move were allowable expenses for income tax purposes. The House ruled that a partnership is a legal entity distinct from its members for computing profits, and while the motives of partners may be relevant, tax law necessitates that the collective purpose of the distinct entity be ascertained in deciding whether an expense was expended exclusively for the purpose of the partnership or whether the payment can be attributed only to the subjective intention of the taxpayer. The House ruled that in the provision of the private home, the partner was not exclusively acting on partnership business, even though establishing a home was to further partnership interest, and disallowed the claim.
Publication Name: The Accountant's Magazine
Subject: Business
ISSN: 0001-4761
Year: 1990
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Charity changes
Article Abstract:
New regulations were issued governing charitable institutions in Scotland and England. The Law Reform (Miscellaneous Provisions)(Scotland) Act of 1990 has provisions to tighten supervision of Scottish charities. The law requires all charitable organizations in the country to make available to the public all pertinent information regarding its activities. The major provisions of the law include the requirement for charities to prepare annual accounts and to make these accessible to the public, and the authority of the Lord Advocate to investigate claims of mismanagement of charities. The newly enacted English Charities Act 1992, likewise, aims to improve the operation of charitable institutions in England. Among its provisions are a new accounting regime for charities, and new regulations for the conduct of charitable collections and fundraising.
Publication Name: The Accountant's Magazine
Subject: Business
ISSN: 0001-4761
Year: 1992
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