QUESTION $5[20$ MARKS$]$

The following types of expenditure are commonly incurred by businesses:

$(1)$ Commission paid to a company's salesmen.

$(2)$ Bad debt in relation to a loan made to a member of staff.

$(3)$ Legal expenses in respect of a dispute over territorial rights.

$(4)$ The cost of advertisements for an unsuccessful marketing campaign.

$(5)$ The cost of acquisition of a business contract.

$(6)$ A payment made in advance for the following year's premises rental.

$(7)$ A contribution to a foreign pension fund.

$(8)$ Value added tax $($VAT$)$ paid for which no input credit is given.

$(9)$ Architect's fees for the designing of a new building.

$(10)$ Interest paid on a loan to purchase shares as an investment.

REQUIRED:

In relation to each of the items of expenditure, state, giving reasons, whether it is or is not deductible

from assessable income for tax purposes.

$[20$ Marks$]$

END OF QUESTION PAPER