Buys, W.J.Vosloo, L.2011-01-112011-01-111995Buys, WJ & Vosloo, L 1995, 'The income tax consequences of closing down a division or a branch of a company', Meditari : Accountancy Research, vol. 3, pp. 18-43. [http://www.meditari.org.za]1022-2529http://hdl.handle.net/2263/15602It is a sign of today's economic realities that divisions and branches of companies are from time to time being closed down. This article investigates the income tax implications of this scenario with regard to the various expenses and costs incurred by the company. Special attention is given to the taxation implications of recurring expenses continuing after the actual close down as well as the aspects affecting trading stock, allowances in respect of capital assets and the position of debtors.enSchool of Accounting Sciences, University of PretoriaBad debtsCapital allowancesCapital natureCollection costsCompromise paymentDebtorsDelegation of obligationsExpensesGeneral deduction formulaIrrecoverable debtsLease instalmentLump-sum paymentMaintenance contractProduction of incomeRetrenchment payScrapping allowanceTrade testTrading stockUnexpired contractsWarrantiesCollecting of accountsDepreciation allowancesInterest -- TaxationIncome tax -- AccountingSettlement costsBusiness enterprises -- TaxationArticle