Perry Peter (Pty) Ltd paid the following legal expenses to attorneys for the 2022 year of assessment:

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• R5 450 of the fee was for debt collection.

• R25 000 related to the drawing up of a restraint of trade agreement which was paid to an ex- employee.

• R25 000 related to a dispute between the company's director and one of the employees due to sexist remarks made by the director.

What amount will be deducted in terms of legal expenses when the company is completing their taxable income for the 2022 year of assessment?

Related Book For answer-question

Fundamental Accounting

ISBN: 9781485112112

7th Edition

Authors: David Flynn, Carolina Koornhof, Ronald Arendse, Anna C. E. Coetzee, Edwardo Muriro, Louise Christel Posthumus, Louise Mancy Smit

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Posted Date: Sep 28, 2023 04:01 AM

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Perry Peter (Pty) Ltd paid the following legal expenses to attorneys for the 2022 year of assessment:

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In the context of tax deductions the deductibility of legal expenses can vary depending on the natur... View the full answer

Fundamental Accounting

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