Page 29 - TAX4862/2 APPLIED TAXATION

GENERAL DEDUCTION FORMULA

In The Production Of Income

The erecting of defective roofs is not closely

connected to any construction business. It is

not a necessary concomitant of the

construction business but rather an avoidable

expenditure. The damages will therefore not

be deductible in terms of s 11(a).

(Joffe & Co (Pty) Ltd v CIR)

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