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General Deduction Case Law, argument-silhouette-screaming-businessperson…

- - - - Trade should be given a wide interpretation
- - - - If something not an inevitable concomitant of the business operations it is not deductible. Damages as a result of negligence cannot be deducted
  - - - Expenditure is deductible if the loss is closely linked with the production of income
- - - - If a payment is contingent upon the happening of an uncertain future event, the expense and corresponding liability can only be actually incurred once the conditions are met
  - - - An expense can only be deducted once there is an unconditional legal obligation to pay an expense
- - - - An expense has to be deducted in the year of assessment that it is incurred. Regardless of when the income it helps produce is received
- - - - Expenditure incurred to induce employees to enter or remain in service of the taxpayer may quality for a deduction since the purpose is to product current or future income
  - - - Audit fees are attached to the performance of the taxpayers income earning operations and can be deducted
      - Where there is a split between producing income vs exempt income, apportionment has to take place
- - - - The cost of establishing income earning plant is capital in nature and cannot be deducted. The cost of performing income earning operations is revenue in nature and can be deducted
  - - - The cost incurred to receive an income earning right is capital in nature and cannot be claimed