Page 28 - TAX4862/2 APPLIED TAXATION

GENERAL DEDUCTION FORMULA

In The Production Of Income

 It is not necessary to show that expenditure

will have an effect upon the production of the

income for that year for it to rank as a

deduction during the year of assessment. The

income may be earned only in a future year,

but as long as the expenditure has been laid

out for the purpose of earning that income, it

is deductible.

 Sub-Nigel Ltd v CIR

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