Page 10 - PowerPoint Presentation
P. 10
Deductions (Actually Incurred )
• An expenditure can only be deducted when there
are no conditions anymore.
• Contingent (uncertain) liabilities are not deductible.
• Example=Advent (Pty) pays short-term premiums in
a savings account. If the company submits a claim
the savings account is forfeited to the insurance
company if it does not submit a claim advent (Pty)
can withdraw the full balance.?
• Are the premiums deductible?
10
