Payments made to an associate (for example, spouse, child or other relative) cannot be claimed as a deduction for performing non-principal work.

Principal work is the work a business must perform under a contract to receive payment.

Non-principal work is incidental or support work that is not central to meeting obligations under a contract. Examples include bookkeeping, issuing invoices, administrative duties and running the home office.

Payments to associates include:

• remuneration such as a salary or commission
• an allowance
• reimbursement of an expense
• rent
• interest on a loan.