Page 448 - SAIT Compendium 2016 Volume2

IN 45 (2) Income Tax acT: InTeRPReTaTIon noTes IN 47 (3)
4.3.6 Security expenditure under section 24D
Section 24D provides a deduction for certain security expenditure actually incurred by a taxpayer in a year of assessment which is not otherwise allowable as a deduction under the Act. The deduction applies to a ‘National Key Point’ as de ned in section 1 of the National Key Points Act, 1980, or ‘place’ or ‘area’ which, although not declared as an National Key Point, has been evaluated and approved by the Minister of Defence or any person or committee appointed by the Minister as such a place or area on which measures for the ef cient security of the place or area ought to be taken by the taxpayer.
No deduction will be granted unless con rmation has been received by the Commissioner for SARS from the Minister of Defence or any person or committee appointed by the Minister to the effect that the expenditure incurred was deemed necessary or expedient [section 24D(2)]. Section 24D is restrictive in its application and will therefore only be relevant to a limited number of taxpayers.
5. Conclusion
In deciding whether security expenditure quali es for a deduction the facts and circumstances of each case must be taken into account.
Income Tax Interpretation Note 47 (Issue 3)
Income Tax: Wear-and-Tear or Depreciation Allowance
DATE: ACT: SECTION: SUBJECT:
Preamble
2 November 2012
INCOME TAX ACT 58 OF 1962 (the Act)
Section 11 (e)
Income Tax: Wear-and-Tear or Depreciation Allowance
CONTENTS
1. Purpose
2. Background
3. The law
4. Application of the law
4.1 General principles
4.1.1 Qualifying assets
4.1.2 Non-qualifying assets
4.1.3 Amount allowable
4.1.4 Use requirement
4.1.5 Apportionment
4.2 Value of a qualifying asset for purposes of section 11(e)
4.2.1 General rule
4.2.2 Foundations and supporting structures
4.2.3 Moving costs
4.2.4 Qualifying assets acquired by way of donation, inheritance or as a distribution in specie
4.2.5 Limitation of allowance granted on a qualifying asset previously held by a connected person (section 23J)
(a) Years of assessment ending before 1 January 2008
(b) Years of assessment ending on or after 1 January 2008
4.2.6 Leased assets
4.2.7 Qualifying assets acquired in a foreign currency
4.3 Policies on the determination of the amount of the allowance
4.3.1 Withdrawal of permission to use the debtor accounting system
4.3.2 Methods for determining the allowance
4.3.3 Write-off periods
(a) Qualifying assets for which write-off periods have been listed in Annexure A
(b) Qualifying assets for which write-off periods have not been listed in Annexure A
4.3.4 Used qualifying assets
4.3.5 ‘Small’ items
4.3.6 Qualifying assets previously used to produce amounts that were not included in the taxpayer’s income
4.3.7 Qualifying assets used for both private and business purposes
4.3.8 Qualifying asset not used for the whole year of assessment
4.3.9 Qualifying assets not yet brought into use for purposes of trade
5. Record-keeping
6. Objection and appeal
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saIT comPendIum oF Tax LegIsLaTIon VoLume 2