AI.TaxAssist uses machine learning to cognitively suggest the non-deductibles and non-taxables in the workspace entries. This classification is marked under the Category column in the Workspace.
Non-deductibles are marked on Expense entries. If an entry is detected as a potential non-deductible, the reason for this detection is applied as the tax Category. Here is a list of non-deductible expenses that the machine will automatically classify as a non-deductible,
Improvement/ new assets
Construction Costs
Amortization expenses
Shares related expenses
Private motor vehicle expenses (S-plated)
Unapproved Funds/Schemes
Fee on lawsuits
Depreciation
Private expenditure
Gifts/Donation
Entrance fees
Capital exchange differences
Capital expenditure
Stock compensation expenses
Fixed assets disposed off
Capital items expensed off
Ceremony expenses
Goodwill/Intangilble
Provision for stock obsolescence (general)
Bad debts written off
Tax expenses
Statutory penalties
Installation fees
Repair (capital)
Dividend expenditure
Architect Fee
Brokerage (capital)
Registration/Incorporation expenses
Litigation expenses
Company reconstruction
Termination of business
Mortgage/Loan
Tenancy/Lease
Property Transfer
Renovation expenses
Lease premium
Loss from theft
Non-contractual loss
Non-trade debts written off
Restrictive convenants
Voluntary contributions
Pre-commencement expenses
Private Car
Foreseeable losses
Leave Pay
General provision
Stamp duty re: capital
Research and development
Expenditure without supporting document
Life Insurance
Personal Insurance
Share based payment
Accretion of capital
Rental expense (rent free period)
Interest expense (book entry)
Non-taxables are marked on Income entries. If an entry is detected as a potential non-taxable, the reason for this detection is applied as the tax Category. Here is a list of non-taxable incomes that the machine will automatically classify as a non-taxable,
One-Tier Dividend
Capital exchange gain
Gain on disposal of fixed assets
Gains on disposal of equity investments
FSIE - Foreign-sourced dividend
FSIE - Foreign branch profits
FSIE - Foreign-sourced service income
PIC Cash Payout
Government grant (to defray capital expenditure)
Payables written off
Non-trade debts forgiven
If you find that the system has not categorised the ledger correctly, you can change the category. To make changes to the category, please follow the steps listed in the article Changing Tax Category & Adding Labels.