Page 193 - SAIT Compendium 2016 Volume1

s 24BA INCOME TAX ACT 58 OF 1962 s 24D
[S. 24BA inserted by s. 52 (1) of Act 22 of 2012 – date of commencement: 1 January 2013; this section applies in respect of transactions entered into on or after that date.]
24C Allowance in respect of future expenditure on contracts
(1) For the purposes of this section, ‘future expenditure’ in relation to any year of assessment means an amount of expenditure which will be incurred after the end of such year—
(a) in such manner that such amount will be allowed as a deduction from income in a subsequent year of assessment; or
(b) in respect of the acquisition of any asset in respect of which any deduction will be admissible under the provisions of this Act.
[Sub-s. (1) substituted by s. 42 of Taxation Laws Amendment Act, 2015 (‘the Commissioner is satis ed’ deleted before ‘will be incurred’) – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
(2) If the income of any taxpayer in any year of assessment includes or consists of an amount received by or accrued to him in terms of any contract and such amount will be utilised in whole or in part to nance future expenditure which will be incurred by the taxpayer in the performance of the taxpayer’s obligations under such contract, there shall be deducted in the determination of the taxpayer’s taxable income for such year such allowance (not exceeding the said amount) in respect of so much of such future expenditure as relates to the said amount.
[Sub-s. (2) substituted by s. 42 of Taxation Laws Amendment Act, 2015 – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
(a) directly in the performance of any act ordered, performed or executed under the provisions of the National Key Points Act, 1980 (Act 102 of 1980), in respect of any National Key Point or Key Point as de ned in section 1 of that Act; or
(b) directly in providing ef cient security against loss, damage, disruption or immobilization of any place or area as de ned in section 1 of the said Act which, although not declared a National Key Point under the provisions of the said Act, has been evaluated and approved by the Minister of Defence or any person or committee appointed by him as such a place or area in respect of which measures for the ef cient security thereof ought to be taken by such taxpayer.
[Para. (b) substituted by s. 22 of Act 121 of 1984.]
(2) The amount of any expenditure allowed to be deducted under the provisions of subsection (1) shall be
restricted to expenditure—
(a) actually incurred by the taxpayer on or after
1 September 1978; and
(b) which was or is not otherwise allowable as a deduction
under the provisions of this Act,
and no expenditure shall be deducted under the provisions of this section unless the Minister of Defence or any person or committee appointed by that Minister has con rmed in writing that it was deemed necessary or expedient that the expenditure in question be incurred by the taxpayer concerned.
[Words in sub-s. (2) following para. (b) substituted by s.
43 (b) of Taxation Laws Amendment Act, 2015 – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
Prelex
Wording of sub-s. (2) in force until date of promulgation of Taxation Laws Amendment Act, 2015
(2) If the income of any taxpayer in any year of assessment includes or consists of an amount received by or accrued to him in terms of any contract and the Commissioner is satis ed that such amount will be utilized in whole or in part to nance future expenditure which will be incurred by the taxpayer in the performance of his obligations under such contract, there shall be deducted in the determination of the taxpayer’s taxable income for such year such allowance (not exceeding the said amount) as the Commissioner may determine, in respect of so much of such future expenditure as in his opinion relates to the said amount.
Prelex
Words in sub-s. (2) following para. (b) in force until date of promulgation of Taxation Laws Amendment Act, 2015
and no claim by the taxpayer for the deduction of any expenditure under the provisions of this section shall be admitted by the Commissioner unless con rmation has been received by him from the Minister of Defence or any person or committee appointed by that Minister to the effect that it was deemed necessary or expedient that the expenditure in question be incurred by the taxpayer concerned.
(3) The amount of any allowance deducted under subsection (2) in any year of assessment shall be deemed to be income received by or accrued to the taxpayer in the following year of assessment.
[S. 24C inserted by s. 18 (1) of Act 104 of 1980.]
24D Deduction of certain expenditure incurred in respect of any National Key Point or speci ed important place or area
(1) There shall be allowed to be deducted from the income of any taxpayer for any year of assessment so much of any expenditure actually incurred by the taxpayer during such year—
[Words in sub-s. (1) preceding para. (a) substituted by s. 43 (a) of Taxation Laws Amendment Act, 2015 – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
(3) Where an amount has been paid by the State to a taxpayer in respect of expenditure incurred by him prior to 1 July 1983 which has quali ed for deduction from his income under subsection (1) and the Minister, person or committee referred to in subsection (2) con rms that such amount was paid as a supplement to the bene t which the taxpayer has enjoyed or will enjoy by way of the said deduction, the provisions of section 8 (4) (a) shall not apply in respect of the said amount.
[Sub-s. (3) added by s. 16 (1) of Act 85 of 1987.] [S. 24D inserted by s. 20 (1) of Act 96 of 1981.]
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Prelex
Words in sub-s. (1) preceding para. (a) in force until date of promulgation of Taxation Laws Amendment Act, 2015
(1) There shall be allowed to be deducted from the income of any taxpayer for any year of assessment so much of any expenditure actually incurred by the taxpayer as the Commissioner is satis ed was so incurred during such year—
INCOME TAX ACT – SECTIONS