The general deduction formula only allows a taxpayer a deduction where the relevant expenditure: (i) Has been paid by the end of the year of assessment (ii) Has been paid or otherwise actually incurred by the end of the year of assessment, meaning that at the very least an unconditional legal liability is in existence (iii) Has not yet been paid or incurred, but generally accepted accounting practice requires that a provision for it be made (iv) Has not yet been paid or incurred, but a reasonable estimate of the contingent liability can be made (vi) Is related to a claim against the taxpayer that has as yet not been settled, but which is disputed by the taxpayer in a court of law