Episode 1: IRB’s Mode on PenaltiesSeptember 18, 2020
Episode 3: Interest-free loans amongst related entitiesSeptember 21, 2020
Take 5 with Thannees: Episode 2
Valuation Fees Can Be Deductible Against Your Business Income
Latest development from the recent tax case of Cempaka Properties Sdn Bhd v Ketua Pengarah Hasil Dalam Negeri has reversed the current thinking that valuation fee is not a deductible business expense.
The High Court has ruled that as long as the valuation expenditure was incurred to carry on the business and there is a correlation to the generation of the profits, the valuation fees is eligible for deduction.
The most important point here is there must be a direct connection between the valuation fees and the business of the company which should lead to the generation of profits.
If you have failed to claim such expenses in the past, it is possible that claims can be made for the preceding 5 years up to YA 2015 under the error and mistake relief.