Page 365 - SAIT Compendium 2016 Volume2

IN 20 (6) Income Tax acT: InTeRPReTaTIon noTes IN 20 (6)
‘SETA’ means a sector education and training authority established in terms of section 9(1) of the Skills Development Act, 1998, and de ned as such in section 1 of thatAct;
‘Skills Development Act, 1998’ means the Skills Development Act, 1998 (Act No. 97 of1998).
(2) (a) In addition to any deductions allowable in terms of this Act and subject to paragraph (b), where—
(i) during any year of assessment a learner is a party to a registered learnership agreement with an employer; and
(ii) that agreement was entered into pursuant to a trade carried on by that employer,
there must, in that year, be allowed to be deducted from the income derived by that employer from that trade an amount of R30 000.
(a) Where a learner is a party to a registered learnership agreement as contemplated in paragraph (a) for a period of less than 12 full months during the year of assessment contemplated in paragraph (a), the amount that is allowed to be deducted in terms of that paragraph must be limited to an amount which bears to an amount of R30 000 the same ratio as the number of full months that the learner is a party to that agreement bears to 12.
(b) If a registered learnership agreement is registered as contemplated in paragraph (a) of the de nition of ‘registered learnership agreement’ within a period of twelve months after the last day of the year of assessment contemplated in paragraph (a), the registered learnership agreement must be deemed to have been so registered on the date on which the registered learnership agreement was entered into as contemplated in paragraph (b) of that de nition.
(3) In addition to any deductions allowable in terms of this Act, where—
(i) during any year of assessment a learner is a party to a registered learnership agreement with an employer for
a period of less than 24 full months;
(ii) that agreement was entered into pursuant to a trade carried on by that employer; and
(iii) that learner successfully completes that learnership during that year ofassessment,
there must, in that year, be allowed to be deducted from the income derived by that employer from that trade an amount of R30 000.
(4) In addition to any deductions allowable in terms of this Act, where—
(i) during any year of assessment a learner is a party to a registered learnership agreement with an employer for
a period that equals or exceeds 24 fullmonths;
(ii) that agreement was entered into pursuant to a trade carried on by that employer; and
(iii) that learner successfully completes that learnership during that year ofassessment,
there must, in that year, be allowed to be deducted from the income derived by that employer from that trade an amount of R30 000 multiplied by the number of consecutive 12 month periods within the duration of that agreement.
(5) Where a learner contemplated in subsection (2), (3) or (4) is a person with a disability (as de ned in section 18(3)) at the time of entering into the learnership agreement, the amounts contemplated in subsection (2), (3) or (4) must be increased by an amount of R20000.
(6) This section does not apply in respect of any registered learnership agreementwhere—
(a) the learner that is the party to that agreement previously failed to complete any other registered learnership
agreement to which the employer or an associated institution in relation to that employer was a party; and
(b) the registered learnership agreement contains the same education and training component as that other registered
learnership agreement.
(7) Any SETA with which a learnership agreement has been registered as contemplated in the Skills Development
Act, 1998, must submit to the Minister any information relating to that learnership agreement required by the Minister in the form and manner and at the place and time that the Minister prescribes.
(8) In respect of each year of assessment during which an employer is eligible for any deduction contemplated in this section, the employer must submit to the SETA with which the learnership agreement is registered any information relating to that learnership agreement required by the SETA in the form and manner and at the place and time indicated by the SETA.
Section 6B(1)
‘disability’ means a moderate to severe limitation of any person’s ability to function or perform
daily activities as a result of a physical, sensory, communication, intellectual or mental impairment, if the limitation—
(a) has lasted or has a prognosis of lasting more than a year; and
(b) is diagnosed by a duly registered medical practitioner in accordance with criteria prescribed by the Commissioner;
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