A client of mine has decided to stop their main business operation (letting dvd's). Subsequent to that, they only had small expenses going through their books (Repairs and Maintenance to get the shop back to original state, bank charges etc...).
I have 2 questions:
1) Can input VAT still be claimed on these expenses, even though they have stopped operating and no income is generated?
2) Can these expenses be deducted for income tax, as the taxpayer's intention is no longer to make profit (as they decided to close the shop?)
Any advice will be appreciated.