Page 180 - SAIT Compendium 2016 Volume1

s 23 INCOME TAX ACT 58 OF 1962 s 23
(i) a labour broker as de ned in the Fourth Schedule, other than a labour broker in respect of which a certi cate of exemption has been issued in terms of paragraph 2 (5) of the said Schedule; or
(ii) a personal service provider as de ned in the said Schedule,
other than any expense which constitutes an amount paid or payable to any employee of such labour broker or personal service provider for services rendered by such employee, which is or will be taken into account in the determination of the taxable income of such employee and, in the case of such personal service provider, any expense, deduction or contribution contemplated in paragraphs (c), (i), (l), (nA) or (nB) of section 11, expenses in respect of premises, nance charges, insurance, repairs and fuel and maintenance in respect of assets, if such premises or assets are used wholly and exclusively for purposes of trade;
[Para. (k) added by s. 28 (1) (b) of Act 30 of 2000, amended by s. 17 (b) of Act 20 of 2006 and substituted by s. 37 (1) (b) of Act 60 of 2008.]
(l) any expense incurred in respect of the payment of any restraint of trade, except as provided for in section 11 (cA);
[Para. (l) added by s. 28 (1) (b) of Act 30 of 2000.]
(m) subject to paragraph (k), any expenditure, loss or allowance, contemplated in section 11, which relates to any employment of, or of ce held by, any person (other than an agent or representative whose remuneration is normally derived mainly in the form of commissions based on his or her sales or the turnover attributable to him or her) in respect of which he or she derives any remuneration, as de ned in paragraph 1 of the Fourth Schedule, other than—
(i) any contributions to a pension fund, provident fund or retirement annuity fund as may be deducted from the income of that person in terms of section 11 (k);
[Sub-para. (i) substituted by s. 56 (1) (a) of Act 31 of 2013 – date of commencement: 1 March 2015; the substituted subparagraph applies iro amounts contributed on or after that date.]
(ii) any allowance or expense which may be deducted from the income of that person in terms of section 11 (c), (e), (i) or (j);
(iiA) any deduction which is allowable under section 11 (nA) or (nB); and
[Sub-para. (iiA) inserted by s. 37 (1) (c) of Act 60 of 2008.]
(iii) . . .
[Sub-para. (iii) amended by s. 38 (1) (a) of Act 45 of 2003, substituted by s. 28 (1) (b) of Act 31 of 2005 and deleted by s. 56 (1) (c) of Act 31 of 2013 – date of commencement: 1 March 2015; the deletion applies iro premiums paid on or after that date.]
(iv) any deduction which is allowable under section 11 (a) or (d) in respect of any rent of, cost of repairs of or expenses in connection with any dwelling house or domestic premises, to the extent that the deduction is not prohibited under paragraph (b);
[Sub-para. (iv) added by s. 28 (1) (c) of Act 31 of 2005.] [Para. (m) added by s. 21 (1) (b) of Act 30 of 2002.]
(n)
any deduction or allowance in respect of any asset or expenditure to the extent that amount—
(i) is granted or paid to the taxpayer and is exempt from tax in terms of section 10 (1) (yA); and
*Para. (q) comes into operation—
(a) insofar as it applies to any person that is a natural person, deceased estate, insolvent estate or special trust, on
1 March 2012 and it applies in respect of years of assessment commencing on or after that date; and
(b) insofar as it applies to any person that is a person other than a natural person, deceased estate, insolvent estate or
special trust, on 1 April 2012 and it applies in respect of years of assessment commencing on or after that date.
[Sub-para. (i) substituted by s. 42 (1) (a) of Act 22 of 2012 – date of commencement: 1 January 2013; the substituted subparagraph applies in respect of years of assessment commencing on or after that date.]
(ii) is so granted or paid for purposes of the acquisition of that asset or funding of that expenditure;
[Para. (n) added by s. 38 (1) (b) of Act 45 of 2003, amended by s. 28 (1) (d) of Act 31 of 2005, substituted by s. 17 (c) of Act 20 of 2006 and amended by s. 42 (1) (b) of Act 22 of 2012 – date of commencement: 1 January 2013; the amended paragraph (proviso to para. (n) has been deleted) applies in respect of years of assessment commencing on or after that date.]
(o)
any expenditure incurred—
(i) where the payment of that expenditure or
the agreement or offer to make that payment constitutes an activity contemplated in Chapter 2 of the Prevention and Combating of Corrupt Activities Act, 2004 (Act 12 of 2004); or
(ii) which constitutes a ne charged or penalty imposed as a result of an unlawful activity carried out in the Republic or in any other country if that activity would be unlawful had it been carried out in the Republic;
[Para. (o) added by s. 28 (1) (e) of Act 31 of 2005.]
(p) the value in respect of any cession of a policy of
insurance ceded by a taxpayer to— (i) any—
(aa) employee (or former employee);
(bb) director (or former director); or
(cc) dependant or nominee of the employee (or
former employee) or director (or former
director),
of the taxpayer; or
(ii) any pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund for the bene t of any— (aa) employee (or former employee);
(bb) director (or former director); or
(cc) dependant or nominee of the employee (or
former employee) or director (or former
director), of the taxpayer;
[Para. (p) added by s. 47 (1) (b) of Act 24 of 2011 – date of commencement: 1 March 2012. This paragraph applies in respect of policies ceded on or after that date.]
(q) any expenditure incurred in the production of income in the form of foreign dividends; or
[Para. (q) added by s. 47 (1) (c) of Act 24 of 2011 – date of commencement: See footnote below*.]
(r) any deduction in respect of any premium paid by a person in terms of an insurance policy if that insurance policy covers that person against illness, injury, disability, unemployment or death of that person.
[Para. (r) added by s. 56 (1) (e) of Act 31 of 2013 and substituted by s. 33 (1) of Act 43 of 2014 – date of commencement of both s. 56 (1) (e) and s. 33 (1):
1 March 2015; the substituted paragraph applies iro years of assessment commencing on or after that date.]
172 SAIT CompendIum oF TAx LegISLATIon VoLume 1