Miscellaneous deductions

Miscellaneous deductions

Paragraph G: The commissioner is allowed to allow deductions he considers just and reasonable representing the diminution of value of any implements , utensil or similar implement that is not machinery because machinery will have enjoyed paragraph 2 deductions

Paragraph H allows withdrawals of subscription/annual fee paid by the taxpayer to a trade association or club , which has made election under sec22 for its income to be taxed
Paragraph M allows deduction of income from a mining company
Paragraph N allows deduction of expenditure incurred by a person for purposes of research carried on by him or if that deduction is for-
-expended
-A sum paid to a scientific research institution that is dully approved by the commissioner as having the object of undertaking scientific research related to class of business to which the business relates

Paragraph 3.Sum paid by University , college or research institution approved by the commissioner for scientific research related to class of business to which that business belongs

Kenya Meat Commission v Income Tax Commissioner
The appeal by the taxpayer against the commissioners refusal to allow a deduction of 200 ,000  made by the appellant as a donation to the  Kenya National Fund on  condition  that the  money  be used for research or  other  work  that will benefit  the Kenya beef and mutton  industry.
HELD: Appeal be allowed because the  donation incurred  by  the taxpayer not only wholly and  exclusively  for the  production  of its income but also for the  purpose of trade carried on by the taxpayer within  the  meaning of section14(2) b of  the E.A.I.T.M.A  now replaced by section 15(2) N of the  Kenya Income Tax Act.

T Ltd vs. Income Tax Commissioner
The appellant carried on certain surveys including both thermal and power production. It was disallowed on grounds that none was on scientific research. On appeal it was held that it be partially allowed because expenditure on thermal generation schemes  and  transmission lines was not on scientific research but that on hydroelectric  was   an activity  in natural science and  was clearly scientific  research.

Paragraph P allows deduction of expenditure on advertising and marketing.

Paragraph R allows deduction of amount of emoluments from the employment of a non-citizen individual under specified circumstances.

Para S allows deduction of expenditure of a capital nature by a person on legal costs and incidental expenses relating to issues of share , debentures or other securities.

Share this:

Disqus Comments