Disallowance rule under tax law: totalisator dividends not disallowed; therefore bookmaker payments subject to disallowance. The tax authority, following advice from the Ministry of Law, advises that the disallowance provision in section 40A(3) does not apply to totalisator dividends paid by race clubs to holders of winning tickets, but the provision does apply to payments made by bookmakers; instructions should be issued to Income Tax Officers to apply this distinction in assessments.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Disallowance rule under tax law: totalisator dividends not disallowed; therefore bookmaker payments subject to disallowance.
The tax authority, following advice from the Ministry of Law, advises that the disallowance provision in section 40A(3) does not apply to totalisator dividends paid by race clubs to holders of winning tickets, but the provision does apply to payments made by bookmakers; instructions should be issued to Income Tax Officers to apply this distinction in assessments.
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