BTF3931 Study Guide - Final Guide: Revenue Commissioners, General Electric J47, Intangible Asset
6 Aug 2018
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(specific deductions) (specific deductions) repairs, capital allowances & capital works (w10) Specific deductions arise when a specific provision in the income tax legislation provides the taxpayer with a deduction (legislation: sec 8-5: a loss or outgoing (i. e. an expense) may, be deductible under s8-1 and specific provision. I(cid:374) these (cid:272)ases, use the (cid:862)(cid:373)ost app(cid:396)op(cid:396)iate(cid:863) provision s8-10: not qualify for deduction under a specific provision. Deductions allowed for expenditure incurred: on repairs (not capital expenses, used for income producing purpose sec 25-10. Repair as a capital outgoing: a repair that constitute a capital expense is not deductible: sec25-10(3) Three broad categories of expenditure on repairs that may be classified as capital: Capital: repairs to defects that exists at the time of acquisition are considered an initial repair and is capital in nature: law shipping co ltd v inland revenue. Fct v western suburbs cinemas ltd improvements not deductible due to change of character of property repaired ceiling with new material capital.
