deduction - Not of a capital nature

Question 1

New state areas ltd

Answer 1

Fixed (capital) vs. Floating capital (revenue)
Cost of establishing/ improving/adding income earning plant (fixed capital) is capital in nature and therefore not deductible vs.
Cost of performing income-earning operations (floating capital) which is revenue in nature and therefore deductible

Question 2

Rand mines

Answer 2

Expenditure incurred to obtain an income earning right or structure will be capital in nature
Cost incurred to create a capital structure = capital
Cost incurred to work the capital structure =revenue