Why my tax agent add back my repair cost which is for business leh... 🤬

Public Ruling 6/2019 - 𝐓𝐀𝐗 𝐓𝐑𝐄𝐀𝐓𝐌𝐄𝐍𝐓 𝐎𝐍 𝐄𝐗𝐏𝐄𝐍𝐃𝐈𝐓𝐔𝐑𝐄 𝐅𝐎𝐑 𝐑𝐄𝐏𝐀𝐈𝐑𝐒 𝐀𝐍𝐃 𝐑𝐄𝐍𝐄𝐖𝐀𝐋𝐒 𝐎𝐅 𝐀𝐒𝐒𝐄𝐓𝐒

Do you know IRB has issued a public ruling 6/2019 on 𝐓𝐀𝐗 𝐓𝐑𝐄𝐀𝐓𝐌𝐄𝐍𝐓 𝐎𝐍 𝐄𝐗𝐏𝐄𝐍𝐃𝐈𝐓𝐔𝐑𝐄 𝐅𝐎𝐑 𝐑𝐄𝐏𝐀𝐈𝐑𝐒 𝐀𝐍𝐃 𝐑𝐄𝐍𝐄𝐖𝐀𝐋𝐒𝐎𝐅 𝐀𝐒𝐒𝐄𝐓𝐒.

The new 10-page PR comprises the following paragraphs and sets out 12 examples:

1.0 Objective

2.0 Relevant provisions of the law

3.0 Interpretation

4.0 Introduction

5.0 Expenses and repairs and renewals

6.0 Categories of repair expenses

7.0 Summary

8.0 Disclaimer

To restore part of the damage, faulty or worn asset to original state or a good condition which without any element of improvement

Original structure and function of the assets must be retained

1. Any element of improvement? No

2. First time incurred? No

3. Replacement of assets entirely? No

4. Replacement for assets with a lifespan of more than 2 years? No

If your repair expense is “No” to all of the questions above...

Congratulations!! Your expenses is revenue expenditure and allowable for deduction!

taxKtp KtpOctober 1, 2020PS, ITA