Question

Neelo Mbiganyi received a notice of assessment from BURS and the Commissioner General had disallowed some of the expenditures that she had claimed. Discuss the appeals and objection processes that Neelo can follow explaining in detail the rights and obligations that both Neelo and the Commissioner General have in these processes. In your answer, also explain what the Commissioner General should do suppose Neelo wins the case

Answer 1

As per the case above, in order to get benefit of the deduction Neelo will have to substantiate the nature of  expenditure and also prove the expenditure is eligible for deduction as per the law.

In order to appeal for the dudction to be allowed below are the points which needs to be taken care of-

1. Purpose of expense- Show that the expense was incurred for your business — for example, to obtain future business, encourage existing business relationships, and so on. What you need to show depends on whether the business conversation occurred before, during, or after entertainment or a meal.
2. Business relationshiip- If entertainment or meals are involved, show the business relationship of people at the event — for example, list their names and occupations and any other information needed to establish their business relation to you.
3. The Place of expense- The nature and place of the expenditure will usually be shown by a receipt, or you can record it in an appointment book. This is required to check the jurisdiction under the law.
4. The amount- How much you spent, including tax and tip(if required). The amount is important to mention as various section of law might now allow the total of the amount spent.
5. Date of exepnse- The date the expense was incurred will usually be listed on a receipt or credit card slip; appointment books, day planners, and similar documents have the dates preprinted on each page, so entries on the appropriate page automatically date the expense.

Once the above mentioned expenditure has been accpeted and allowed, the Commissionar General should intimate in written communication to Neelo and shall allow the deduction in the books.If any charges were made under any section of the law, then those will be reversed. If any penalties or interest were charged, then those should be credited in the bank account of Neelo along with interest as prescribed by law.