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Define expenses are allowable or non-allowable deduction

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Question: Rajesh started an electrical manufacturing and trading business named Rajesh Electrical Manufacturing and Trading on 1 February 2019. The following were expenses incurred by the business for the year ending 31 December 2019.

- Legal fees of RM4,000, which include fees for collection of a debt of RM 2,000, bank loan arrangements of RM1,500 and the cost of an income tax appeal of RM500 for late filing.

- Repairs and maintenance of RM12,000 which includes the replacement of a damaged door of the same type and size worth RM3,000 on 20 January 2019 and the extension of the roof of the shop amounting RM9,000 on 1 June 2019.

Required: Evaluate (by indicating the amount) with reasons whether the above expenses are allowable or non-allowable deduction for the business in the year of assessment 2019.

Reference no: EM132748091

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