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DATE: | (Date of pronouncement) |
DATE: | March 26, 2008 (Date of publication) |
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Non-compete compensation paid to an employee for an indefinite period is business expenditure and not capital expenditure as no capital asset or benefit of enduring benefit came into existence. While the lenght of the period of the covenant is important, it is not decisive. What is more important is the purpose of the payment and its intended object and effect.
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