Deductions

Q. 

Entertainment given to potential client in a closed transaction

• Allowed a deduction of 100%

• Not allowed a deduction of 100%

• Allowed a deduction of 50%

• Not allowed a deduction of 50%

Entertainment given to potential or existing customer when launching company's new product

• Allowed a deduction of 100%

• Not allowed a deduction of 100%

• Allowed a deduction of 50%

• Not allowed a deduction of 50%

Answer explanation

Proviso (vii) to Para 39(1)(l)

Wedding gift to customer

• Allowed a deduction of 100%

• Allowed a deduction of 50%

• Not allowed a deduction of 100%

• Not allowed a deduction of 50%

Answer explanation

Not wholly & exclusively incurred under S33(1)

Entertainment to employees of related companies

• Allowed a deduction of 50%

• Allowed a deduction of 100%

• Not allowed a deduction of 50%

• Not allowed a deduction of 100%

Answer explanation

Not wholly & exclusively incurred under S33(1)

Expenses for Annual General Meeting of company

• Allowed a deduction of 50%

• Not Allowed a deduction of 50%

• Not allowed a deduction of 100%

• Allowed a deduction of 100%

Answer explanation

Not wholly & exclusively incurred under S33(1)

Cash contribution for customer's annual dinner

• Allowed a deduction of 100%

• Allowed a deduction of 50%

• Not Allowed a deduction of 50%

• Not allowed a deduction of 100%

Answer explanation

Not wholly & exclusively incurred under S33(1)

Annual dinner honoring star employee & other employee

• Allowed a deduction of 100%

• Not allowed a deduction of 100%

• Not allowed a deduction of 50%

• Allowed a deduction of 50%

Answer explanation

Proviso (i) to Para 39(1)(l)

Gift with business logo for customer's annual dinner

• Not allowed a deduction of 100%

• Allowed a deduction of 100%

• Not allowed a deduction of 50%

• Allowed a deduction of 50%

Answer explanation

Proviso (vi) to para 39(1)(l)

Free trip as an incentive to sales agent for achieving the sales target

• Allowed a deduction of 50%

• Not allowed a deduction of 100%

• Allowed a deduction of 100%

• Not allowed a deduction of 50%

Answer explanation

Proviso (vii) to para 39(1)(l)

Money in the business is embezzled by employees who is responsible with accounts. The employer try to locate the employee but no police report was made. The expenses is