KB 1925 9 TC 319
A family company under the sole control of its managing director. After the death of the director it came to light that a number of transactions passed through the company were private transactions relating to the deceased director. This created a balance due from the director that was irrecoverable and therefore written off. The write off was not allowed as it did not relate to company’s trade, it related to the director’s freedom to do as he pleases.