Deductions Pre-trade and prepaid expenses
| OUTCOMES OF TOPIC After studying this introduction to special allowances not claimed in the Income Statement, you should be able to: ✓ Understand why a difference between accounting profit and taxable profit could arise; ✓ Define an expense for accounting purposes; ✓ Understand what a special allowance is for taxation purposes; ✓ Recognise where business’ expenses are reflected in the business’ financial statements; ✓ Explain which special allowances that are not claimed in the Income Statement can be claimed in the ITR14 Tax Computation; ✓ Complete the Tax Computation sections on the ITR14 to reflect special allowances not claimed in the Income Statement. |