Summary of Issue: Deductible Expenses

Decision 65730 Full Text of Decision 65730

The claimant had received a personal loan from his parents to set up his business and had repaid $3,750.00 on this loan during the period the Commission allocated his earnings from his self-employment. The Umpire stated that Black's Law Dictionary defines "operating expense" as: "Those expenses required to keep the business running, e. q. rent, electricity, heat. Expenses incurred in the course of ordinary activities of an entity". He concluded that the Board erred in law in including the repayment of a loan as an expense and confirmed the Commission's decision.

Decision 39176 Full Text of Decision 39176

Disallowing capital expenses, disallowing items for which details are not provided and disallowing amounts paid to restaurants because they appeared to be more of a personal or entertainment expenses rather than legitimate business operating expenses is correct. It is only the operating expenses of the business that are to be deducted from the gross revenues and the claimant has the obligation of proving that the amounts claimed fall into that category.

Decision 20350 Full Text of Decision 20350

The Commission used the monthly statement of earnings, bearing in mind that para. 57(6)(c) does not permit the deduction of capital expenditures. Certainly the Regulations do not permit the deduction of amounts for capital expenditures.