Transfer pricing comparables and adjustments: Tribunal revisits loss-maker status, segmental comparability, working capital relief, and risk allocatio...
Business expenditure disallowance failed where commission, related-party salary and promotion payments were supported by records and inquiry was inade...
Issue concerns tax treatment of employer payments to an insurer for a future annuity structured for the employee. The article applies the principle that perquisite taxation requires the employee to have a vested, due or enforceable right; contingent or non vested future entitlements are not taxable in the year of employer contribution. It reasons that taxing the employer's payment when the employee has no enforceable right would duplicate taxation because annuity instalments are later taxed on receipt or accrual. Outcome: employer contribution should not be taxed in the contribution year to avoid impermissible double taxation.
Issue concerns tax treatment of employer payments to an insurer for a future annuity structured for the employee. The article applies the principle that perquisite taxation requires the employee to have a vested, due or enforceable right; contingent or non vested future entitlements are not taxable in the year of employer contribution. It reasons that taxing the employer's payment when the employee has no enforceable right would duplicate taxation because annuity instalments are later taxed on receipt or accrual. Outcome: employer contribution should not be taxed in the contribution year to avoid impermissible double taxation.
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