Question 5(7 marks)

Referring to relevant statutory provisions and common law, discuss whether the following amounts would be as an allowable deduction against assessable income. (Maximum 250 words)

a) Provision for the estimated amount of trade debtors accounts which might not be collected.

b) Speeding fines of $ 900 paid by an owner to a driver.

c) An amount of $1200 paid to a solicitor for preparing a partnership deed.

d) Travel cost of a business executive to attend a trade fair in Munich paid by the employer.

e) Newspapers purchased by an accountant who advises clients on financial and investment matters.