Page 18 - Taxation F6

Deductions

• Expenditure and losses

• Losses = usually are involuntary in nature whereas

• Expenditure = means voluntary payment of money.

• Actually incurred.

• Its actually incurred and not necessarily incurred. What

does this mean lets discuss.

• It rules out the deduction of:

- Provisions for expenditure or losses that are uncertain.

- Expenditure or losses that might arise in the future.

• There must be unconditional legal obligation to pay.

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