Deductibility of Overseas Travel for New Business Opportunities or New Suppliers
Foreign Travel to explore new business by an existing Business entity are just claimable under S 8. If the business is yet to be started, then It is black hole expense and will be claimed over 5 startting from the Which year will depend upon which entity incurred the expense (By Sole trader, Company, Trust or Partnership ). Travel to buy a asset (depreciable) is part of the cost of asset but if eventually it is not bought then it is blackhole. This asset rule applies even for local travel as well. Travel Diary and other general substantiation rules apply as normal. Disclaimer: Any information in this article is of general nature only. Any person should, before acting on the content, consider the appropriateness of it having regard to their own personal circumstances, and if necessary seek professional advice. J.A.P TAXATION and its employees or any related entities, do not accept any liability for any loss, damages or outgoings rising out of the use o