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Legal Terms –Business
Business, in the context of value-added tax, refers to an activity that qualifies as a "economic activity" according to the interpretation of the EU Sixth Directive by the European Court of Justice (Welcome Trust Ltd v Customs and Excise Commissioners [1994] VAT Decision 12206). Such activities are potentially subject to VAT liability. In other sections of the Taxes Acts, the definition of the term "business" appears to be influenced by the surrounding circumstances. A "property business" refers to the total sum of all rental activities conducted by an individual taxpayer. Income tax on property income is imposed on the profits generated by the taxpayer's own "property business". Courts generally recognize that every corporation engages in business activities, as this is the fundamental nature of a firm. Occasionally, the business alone possesses shares in other companies. Deductions are made for business-related expenses when calculating profits subject to income tax. Deductions are not made for expenses that have a domestic purpose, and generally not made when there is a duality of purpose.
Business, in the context of value-added tax, refers to an activity that qualifies as a "economic activity" according to the interpretation of the EU Sixth Directive by the European Court of Justice (Welcome Trust Ltd v Customs and Excise Commissioners [1994] VAT Decision 12206). Such activities are potentially subject to VAT liability. In other sections of the Taxes Acts, the definition of the term "business" appears to be influenced by the surrounding circumstances. A "property business" refers to the total sum of all rental activities conducted by an individual taxpayer. Income tax on property income is imposed on the profits generated by the taxpayer's own "property business". Courts generally recognize that every corporation engages in business activities, as this is the fundamental nature of a firm. Occasionally, the business alone possesses shares in other companies. Deductions are made for business-related expenses when calculating profits subject to income tax. Deductions are not made for expenses that have a domestic purpose, and generally not made when there is a duality of purpose.
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