Section 87: Excessive management expenses

87. Excessive management expenses (1) Subject to subsection (2), where a person carries on any business or other income earning activity and the Director-General is of the opinion that any management expenses incurred by him exceed the amount which is reasonable, having regard to the nature and extent of the management services rendered, the amount of the excess shall not be an allowable deduction. (2) This section shall not apply to the extent that the income of the taxpayer concerned is adjusted under section 84, 85 or 86. (3) For the purposes of this section, “management expenses” means emoluments, fee, rent, commission, charge or other administration expense incurred in the general management of a business or other income earning activity.