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Flashcards in Deductions- Case Law Deck (11)
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1
Q

Trade- Burgess

A

Wide interpretation given to trade.

2
Q

Expenditure and Losses- Joffe

A

If not an inevitable concomitant of business operations, not deductible.

3
Q

Actually incurred-Nasionale Pers BPK

A

Provision does not constitute expenditure actually incurred.

4
Q

Actually incurred- Edgars Stores

A

unconditional legal obligation( not contingent)

5
Q

Actually incurred- Golden Dumps

A

Amount in dispute only actually incurred when dispute settled.

6
Q

During year of assessment- Sub-Nigel Ltd

A

Accounting Matching principle is irrelevant.

Expense can only be claimed in year incurred.

7
Q

In production of income- Port Elizabeth Electric Tramway

A
  1. Purpose of expense?

2. How closely connected is expense to production of income?

8
Q

In production of income- Joffe and Co

A

If not an inevitable concomitant of business operations not deductible.

9
Q

Not of a Capital nature- New state Areas Ltd

A

Fixed Capital Vs. Floating Capital

10
Q

Not of a Capital nature- George forest Timber

A

Fixed Capital Vs. Floating Capital

11
Q

Not of a Capital nature- BP South Africa

A

Purpose of expense and not the legal classification thereof.