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  • For companies > Preparing tax computation > What can be deducted > Business Expenses: Generally, you can claim deduction for expenses that are wholly and exclusively incurred in the production of income. To qualify for tax deduction, the expenses must also satisfy the following conditions: The expenses must be revenue in nature, (generally refers to the normal day-to-day operating expenses). Capital expenditure is not allowable as a tax deduction. The deduction must not be prohibited under the Income Tax Act. The expenses must be incurred. Contingent liability is not allowable as a tax deduction.

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