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Ayesha's Tax Refund Investment Options

The document discusses whether various expenses would be allowable tax deductions. It analyzes expenses related to ceasing business operations, future production costs, penalties and fines, legal fees, travel, employer expenditures, insurance consultant fees, school expenditures, company risk expenditures, work reimbursements, and revaluing assets. It determines that expenses like penalties, legal fees, employer costs, school costs, and asset revaluations are not allowable deductions, while future production costs, some travel, insurance consultant fees, and work reimbursements can be allowable deductions depending on the specific circumstances. Matsushima's company risk expenditures are also deemed non-deductible.

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Malcolm Tumana
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7 views2 pages

Ayesha's Tax Refund Investment Options

The document discusses whether various expenses would be allowable tax deductions. It analyzes expenses related to ceasing business operations, future production costs, penalties and fines, legal fees, travel, employer expenditures, insurance consultant fees, school expenditures, company risk expenditures, work reimbursements, and revaluing assets. It determines that expenses like penalties, legal fees, employer costs, school costs, and asset revaluations are not allowable deductions, while future production costs, some travel, insurance consultant fees, and work reimbursements can be allowable deductions depending on the specific circumstances. Matsushima's company risk expenditures are also deemed non-deductible.

Uploaded by

Malcolm Tumana
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Self-assessment exercises Solutions

Question 1
Dockyard (Investments) are not entitled to a deduction for these amounts. The company had
already ceased its income-producing operation, therefore it is not entitled for a taxable
deduction.

Question 2
Are either of these expenses allowable as deductions under the general provisions?
These expenses incurred are allowable as a deduction because they relate to the future
production for the Plantations Ltd.

Question 3.
Discuss whether a deduction would be allowable for each of the following:
a) It is not allowable for deduction because it relates to a non-deductible expenditure

b) Penalties and fines are not deductible. Denies a deduction for losses and outgoings to the
extent that they are incurred in relation to a prosecutable or indictable “offence” under the
law.

c) Legal fees for partnership deed are not deductible. Expenses associated with the purchase
or establishment of a business (pre-commencement expenses) are generally incurred at a
point too soon to be regarded as being incurred in carrying on the business (i.e. income
producing activities) and therefore are not deductible.

d) Home to work travel was also deductible where it was necessary the manager to travel
overseas for business runs of the firm outside of work.

e) Companies expenditure is not incurred by an individual but by the company as whole in


this case the employer therefore this would be considered as non-allowable deductions.

f) It is an allowable deduction because it is directly affecting your income therefor it is


considered as an allowable deduction.

g) It’s a non-allowable deduction because the employer himself his incuring for the
company’s expediture.

h) -It is an allowable deduction because insurance consultant is any employee who


incurred for the insurance company expenditure and also did not get a reimbursement.

i) Is a non-allowable deduction because she is not incurring for any expense from the
school’s expediture therefore it’s a non-allowable [Link] is walking so there be
no claim for reimbursment.

Question 4
Since Matsushima itself is incurring for the for the company’s expenditure at its own risk the
company is not eligible for tax rebate at the end of the tax years therefore this is considered to
non-allowable deduction.

Question 5
Discuss whether the following are allowable deductions under S68(1).
a) The work expenses reimbursed to you by your employer are not deductible an therefore
the cost of moving machinery directly relate to your earning so it’s a allowable deduction.

b) When revalue the company is increasing assets which their already own to increase their
insurance cover, non-allowable deduction.

Name: Malcolm Tumana


ID#: !80148
Course: Taxation 2
Class: BS 3 (Management)

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