ICANTaxationCompanies Income Tax: Adjusted Profit2024

Which of the following is an allowable deduction in computing adjusted profit?

AIncome tax paid for a prior year
BInterest on money borrowed and used for the businessCORRECT
CExpenditure on the initial construction of a factory
DPreliminary expenses of incorporation
AI
Toaster Teacher
Why the answer is B, and why the others tempt you.
Interest on borrowings employed in the business is wholly and exclusively incurred for the trade and is deductible. Income tax, capital construction costs and preliminary incorporation expenses are all disallowed.
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