Part 8Former employees: deductions for liabilities
Deductions from total income
556Deductible payments made outside the time limits allowed
1
No deduction may be made under section 555 if the deductible payment is made—
a
on or before the day on which the former employee ceased to hold the former employment, or
b
after the end of the sixth tax year following the tax year in which the former employee ceased to hold the former employment.
2
If subsection (1)(a) applies, see section 346 (deduction for employee liabilities).