I f a company pays an annual insurance premium of $680 to cover for the director against any liablities that m ight arise in relation to his directorship.How do ypou deal with it?Is it exempt or a benefit or an allowable deduction?
I am not a tutor, But based on my experience. If you see this expense. Its a business expense incurred for the purpose of business. This amount is not paid to settle personal liability for director. It would considered as allowable expense from corporation tax point of view and from employement tax point of view it wont be considered as benefit, since it is not giving rise to any personal benefit of director. Hope it helps.
However tutor can put more light on this example.
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