Satwaki Chanda considers some of the rules which allow companies to deduct their management expenses when calculating taxable profits.
The relief for management expenses is only available to a company with investment business. Management expenses are defined as expenses of managing the business in so far as the following criteria are met (CTA 2009, s 1219):
- the expenses are referrable to the making of the company’s investments; and
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the investments are not held for an unallowable purpose.
The relief is only available for revenue items and only to the extent that the expenses cannot be deducted under another provision in the tax legislation. However, certain capital items are specifically allowed. These include certain staff-related costs such as setting up employee share schemes, counselling and
