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  • Deductions

    Situations that attract our attention include:

    • incorrectly claiming deductions (see income and deductions for business) that decrease taxable income including from    
      • failing to add back non-deductible expenses in the reconciliation statement
      • inappropriately valuing closing stock at below cost or replacement value
    • payments made to related parties for services that either  
      • were not provided
      • had no connection with earning assessable income
    • undefined expenses
    • using the trading stock election rules to lower the valuation of closing stock.

    For more information on trading stock, see TR 93/23 Valuation of trading stock subject to obsolescence or other special circumstances.

    Last modified: 24 Aug 2022QC 69466