Page 39 - F6 Slide - Taxation - Lecture Day 2 Class
P. 39
Deductions
• Expenditure and losses
• Losses = usually are involuntary in nature whereas
• Expenditure = means voluntary payment of money.
• Actually incurred.
• Its actually incurred and not necessarily incurred. What
does this mean lets discuss.
• It rules out the deduction of:
- Provisions for expenditure or losses that are uncertain.
- Expenditure or losses that might arise in the future.
• There must be unconditional legal obligation to pay.
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