Company Tax - Business & Non-Business Deductions

What impact does a deductible business expense have on taxable income?

• Reduces taxable income.

• Increases taxable Income.

• Has no impact on taxable income.

• Has a deferring impact to taxable income.

Which condition must deductible business expenses satisfy?

• Capital in nature.

• Dependant on a contingent event.

• Solely incurred in the production of income.

• Prohibited from deduction under the Income Tax Act 1947.

What is an example of a non-deductible business expense?

• Bank charges.

• Book-keeping services.

• Depreciation of property.

• Management fees paid to head office.

How are non-deductible business expenses recorded?

• Added back to Net Profit.

• Added back to Gross Profit.

• Subtracted from Net Profit.

• Subtracted from Gross Profit.

Legal advice fees, for personal disputes involving business partners, is classified as

• Deductible Business Income.

• Deductible Business Expense.

• Non-deductible Business Income.

• Non-deductible Business Expense.