Page 17 - Capital Allowances Recoupments Part 3 (CTA)
P. 17
How is debt used directly or indirectly to fund
expenditure? [s 19(2)(a)]
DIRECTLY?
A Co appoints a contractor to perform repair work to its machinery on credit.
Repair service
Contractor Co
On credit = debt
INDIRECTLY?
A Co is under cash flow pressure and does not have enough funds to pay
the monthly salaries to its employees at month-end. The Co borrows the
money from the Bank by way of a loan.
Bank Loan Co Salaries
Employees
