Kyle is a South African resident, aged 36 years. He owns a bar in Bloemfontein. Due to the good reputation and popularity of his business, Kyle needed to appoint two bouncers to ensure the safety of his customers and to minimise fights. During the 2022 year of assessment one customer had five drinks too many and started a fight with another customer. One of the bouncers tried to control the issue and stop the fight; however, he ended up having two of his ribs broken. The fight was eventually stopped by the other bouncer. Kyle incurred costs amounting to R76 000 to cover the medical expenditure of the bouncer who got injured. Kyle will not be allowed to deducted the R 76 000 when calculating his taxable income.

Kyle is a South African resident, aged 36 years. He owns a bar in Bloemfontein. Due to the good reputation and popularity of his business, Kyle needed to appoint two bouncers to ensure the safety of his customers and to minimise fights. During the 2022 year of assessment one customer had five drinks too many and started a fight with another customer. One of the bouncers tried to control the issue and stop the fight; however, he ended up having two of his ribs broken. The fight was eventually stopped by the other bouncer. Kyle incurred costs amounting to R76 000 to cover the medical expenditure of the bouncer who got injured. Kyle will not be allowed to deducted the R 76 000 when calculating his taxable income.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 96TPC: Allison and Paul are married and have no children. Paul is a lawyer who earns a salary of 80,000. In...

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