Page 52 - Taxation F6
P. 52
Goods In Transit
• A taxpayer is allowed to deduct the cost of
purchases on the earlier of incurring or payment.
• This means that when a taxpayer incurs the
expense a deduction is allowed even if the goods
are still in transit.
• If the goods are still in transit but not in stock it
means that the closing stock is not added back
resulting in the receiver of revenue loosing .
• Hence an anti-avoidance provision.
52
