| Description |
In 1928, Utah Construction Company completed its first project outside of the United States with the 110 mile railroad for Southern Pacific of Mexico. Over the next 30 years, UCC continued to work on projects in Mexico including dams, roads, mining, and canals. The collection contains several booklets and correspondence along with approximately 500 photographs. |
| OCR Text |
Show 14- 16. Non-deductible items: As in the previous law, the following are specifically not deductible: a) Payments for income tax, for account of the taxpayer or for b) Interest paid on capital stock, in accordance with the statutes of mercantile companies. c) Expenses incurred outside Mexico, on a pro-rated basis with companies which are not taxpayers under the combined tax on enterprises. d) Provisions to liability reserves or for indemnities to employees. e) Premiums over par value paid by the taxpayers upon redemption of stock. 1?. New non-deductible items: The new law also expressly indicates that "amounts which are in the nature of participation in the profit of the taxpayer or which are conditional to the obtaining of a profit, payable to workers, directors, debenture holders or others" are not deductible. The previous law only prohibited the deduction of such payments to workers or debenture holders. In view of the wording "or others", it is particularly important that all those companies whose payments for technical services, royalties, management bonuses, etc., are conditional to or calculated on profits, obtain written resolutions from the tax authorities as to the deducti-bility of such payments and, if necessary, revise their contracts or agreements to avoid disallowance of these expenses. Also no longer deductible or amortizable are losses resulting from the merger (goodwill) or liquidation of companies in which the taxpayer was a stockholder or partner, nor the losses resulting from the sale or other disposition of real estate, machinery or equipment, included in fixed assets. However, If in the same year or in the five succeeding years there are gains of a similar nature, the gains and the losses can be offset; if the net of the two Is a gain, this is added to ordinary income In the proportion indicated in the next point; however, losses incurred more than 10 years after acquisition of the assets are not deductible nor amortizable nor can they be offset against gains. 18. Capital gains: Gains from the sale of fixed assets represented by real estate, machinery or equipment, as well as those derived from the merger or liquidation of companies in which the taxpayer is a partner or stock- |
