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Vodafone Cellular Ltd v. Shaw (Inspector of Taxes) [1997] STC 734 (C.A.)

Deductible expenses. Section 74 ICTA 1988. A one-off payment to terminate an onerous contract was deductible in computing profits for corporation tax purposes. The payment was held to be of a revenue nature and was wholly and exclusively for the purposes of the taxpayer’s trade rather than the trades of its subsidiaries.

Michael Flesch QC and Felicity Cullen appeared for the taxpayer