Page 40 - F6 Slide - Taxation - Lecture Day 2 Class
P. 40

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?



                                                                                                                                    40
   35   36   37   38   39   40   41   42   43   44   45