Deductions must be intended to produce taxable income : tax deductions

Section 11(a) of the Income Tax Act, the so-called general deduction formula, seems to have produced more court cases than virtually any other section of the Act. And each time, the courts tell us the same thing: In order for you to successfully claim an expense as a deduction for income tax purposes, there must have been a clear intention for this expense to have resulted in you earning taxable income from this expense.