| 20/5/2012 |
HOME
FSS
Downloads
|
| Board of Special Commissioners - Cases |
| Case No. 29/65 |
Decided: 30 September, 1967 |
|
|
Documentary film deemed by the Board to be a fixed asset; production costs not considered as trade expenses - article 10, now 14, Income Tax Act
|
Appellant contested the Commissioner's decision to consider expenses incurred in the production of a documentary film as being capital in nature and not deductible.
The Board agreed with the Commissioner's view that the film could not be classified as trading stock once it was not meant to be for sale in itself. It was a fixed asset to be put to use to produce income. It is a fact that a documentary film loses much of its value over a period of time and there might come a time when it becomes obsolete, at which point obsolescence allowance may be admitted by Revenue. In the meantime, however, the Commissioner was correct in granting capital allowances and disallowing the deduction of the production costs.
|
|
|
|
|