Executive Rule No. 35 defines the tax treatment of provisions and reserves for Incorporated Bodies. It distinguishes provisions, which are liabilities to cover losses, from reserves, which are distributions of profit. The rule explicitly disallows deductions for creating provisions but permits deducting actual costs spent from them, provided there is supporting documentation like judicial rulings or certificates. Conversely, reserves are generally not accepted as deductions, with specific exceptions for the banking and insurance sectors. Special cases require prior consultation with the Tax Department.