Description

Categorising capital and revenue expenditure is an area of difficulty and uncertainty and there is a total lack of guidance in this area from legislation.  The principles come from a myriad of cases that, at times, seem conflicting.

This webinar will focus on clarifying the general principles and a review of interest deductibility when dealing with borrowing for a capital purpose.  Specifically, the webinar will review the following:

General principles of Capital/Revenue Distinction

• General rules for deductibility
• Tests for the capital/revenue distinction
• The 3 principles
• The 6 tests

Deductibility of Interest on Capital Transactions

• General Rules
• Automatic deduction for companies
• Interest on money borrowed to:
• acquire a group company,
• retain assets,
• repay working capital,
• repay amounts invested in a business

This webinar covers key income tax considerations that advisors and their clients need to be aware of in categorising capital and revenue expenditure.

ORIGINAL BROADCAST DATE

9 May 2024

LEARNING OUTCOMES

Upon satisfactory completion of this webinar you will be able to:

• Have an increased understanding of the income tax issues in the areas covered
• Better process deductibility in the areas covered in financial statements and tax returns
• Have more confidence in advising SME clients on categorising capital and revenue expenditure

SUITED TO

This course will be suited to intermediate through to advanced accountants in public practice and is also suitable for corporate accountants.

PRESENTER

Mike Hadwin, Director, Symmetry Advisory Ltd (presenting on behalf of TEO Training Ltd)