Page 19 - F6 Slide - Taxation - Lecture Day 2

Deductions

• Actually incurred (page 130)

• 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?

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