Page 22 - F6 Slide - Taxation - Lecture Day 2

Deductions

• Not of a capital nature

• The expenditure should not be of a capital in

nature.

• The question to determine whether expenditure

is of capital in nature or not is:

• The cost related are for income earning

operations = not capital or

• The costs are for the establishment ,improving or

adding the income earning structure = capital in

nature.

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