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how do I know deductible non deductible and expenses to arrive at the INCOME TAX PAYABLE.
EXAMPLE:
– Fines for traffic offences committed by company drivers $11500
– compensation paid to the employees affected by a mine accident $1,250,000
– fines charged for pollution of local river $650,000
– Penalties for late payment of contribution $105,000Only the penalties for late payment of contribution $105,000 and Fines charged for pollution of local river $ 650,000 where included for Taxable income.
Why was compensation paid to the employees affected by a mine accident of $1,250,000 not included in the taxable income?. please help me.
You have not asked one question on what is in the OT notes and lectures and I regret to say that the nature of your questions on random subjects often using terms that do not exist is worrying – as I think I may have already said to you previously, you need to work conscientiously through the lectures and notes BEFORE you look at any questions from whatever source you may be looking at.
In this question you are referring to expenses not included as taxable income in an income tax computation but from the extract you have given it actually looks like a CORPORATION TAX question establishing in the company’s adjustment of profits what expenses are to be disallowed and added back in that adjustment of profits!
In your own best interests STOP trying to work these random exercises and work through the notes and lectures and examples provided in the OT material.
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