Business Expenses

The general deduction test is provided in S 33(1) of the ITA

Business expenses has to fulfill all the following conditions in order to secure a deduction from the gross income of a business source:

1. each business source has to be accounted separately;
2. the scope of expense refers to 'outgoing and expenses';
3. the expenses have to be 'wholly and exclusively';
4. incurred;
5. in the production of gross income from that business source.