Originally Posted by
mothy1583
I would like to know why Inland Revenue allow a fine levied against fraudulent behaviour such as cargo price fixing to be written off against taxable profit? Sadly, we frequently see large corporations getting a smack on the wrist for fixing interest rates, cargo fees, currency exchanges etc and no-one gets sacked or shut down. It is obviously a management decision to task an individual, group of individuals or even a whole department with the job of defrauding their customers as the profit - even allowing for being caught and fined - is worthwhile. Then, when caught, they double dip by writing down the fine as a cost of doing business.
Another thing that gets my goat is that despite managing us into a black hole, Swire have elected to pay the full dividend to shareholders (ie themselves). They already skim their "management fee" before losses, but evidently that isn't enough.
They then have the gall to tell the employees that they need to tighten their belts and take one for the team. Good luck selling that one!
They don't. From the IRD
Examples of non deductables: ♦ penalties/fines for breaking the laws; ♦ entertainment expenses not expended for business purpose; and ♦ rent or expenses relating to premises not occupied for the purpose of producing assessable profits.