Court allows deduction of accrued social fund payments as business expenses even if not yet paid out.

The Supreme Court allowed the taxpayer to deduct accrued payments to the social fund as business expenses despite the funds not being transferred to a separate bank account. The tax authority argued that expenses must be actually incurred, but the taxpayer contended that accrual accounting principles permitted deduction for amounts booked in the correct tax year. The court ruled that since the amounts were properly accrued and related to the tax year's income, they qualified as deductible costs under the Income Tax Act.