Sir could you explain the reason why legal fees associated with issuing of preference shares is disallowed? When legal fees related to loan is allowed. both of them serve the same purpose of getting the company more money to fund its operations, so then why difference in tax treatment?
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Legal fees related wto
One is related to equity finance and not allowable and the other is related to debt and is allowable - in the same way that interest payments are allowable expenses and dividends are not!
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