Extravagant Expenses
Extravagant Expenses for Cambodia Tax
Extravagant expenses are non-deductible expense for tax on income purpose. If tax auditors made professional judgement for some extravagant expenses, then extravagant amount will be excluded for tax on income ( profit).
Example 1
Accountant of ABC company recorded A4 paper $20, but tax auditor judged A4 Paper should cost $5.
Required
Calculate non-deductible expense.
Answer
Non-deductible expense = $20-$5=$15, so amount ( $15) is non-deductible expense for tax on income ( profit) because tax auditor made professional judgment it is extravagant expense.