Buckley & Young Ltd v CIR - Buckley- and young case is an unusual one as we go to an outcome and change the decision a little bit. What happened with buckley and young, is it was a company they wanted the tax payer to no longer work for the company. They paid for him to retire early. They were Not happy with how he was doing his job. They compensated him to leave. As part of the compensation package he got for leaving the firm , there was some few bits and piece there. He got consultant contract .They paid his super annuation contribution for another 4 years or so until he retired. They paid for his legal expenses. And let him keep company car that he had. In return he agreed to not compete against them. He signed a restrictive covenant. So he wasnt going to work for someone else or set up on his own against buckley and young at that point. He got this agreement to not compete against the company and or divulge facts about the company at that point as well. This contract he got was a sum of money he continue to receive but wouldnt be working for the company at that point. - Whatt happened was buckley and young claimed these costs. All the costs in the grey box on the slide. They claimed them as a deduction. When it went to inland rev, they said these were not rev expenses, they argued it was capital in nature. - Courts had eventually decided this. - shorten