i) General Deduction Rule:

• The Commissioner-General shall not allow a deduction in respect of domestic or excluded expenses incurred by a person.
• A specific deduction rule shall take precedence where more than one deduction rule applies.

Residual Deduction Rule:

• In calculating a person’s income from conducting a business or investment for a year of assessment, deduct expenses to the extent they are wholly, exclusively, and necessarily incurred during the year by the person and in the production of income from the business or investment.
• No deduction is allowed for an expense of a capital nature.
• Expenses of a capital nature include those that secure a benefit lasting longer than 12 months.