Page 194 - SAIT Compendium 2016 Volume1

s 24E INCOME TAX ACT 58 OF 1962 s 24G
24E Allowance in respect of future expenditure by sporting bodies
(1) If income is received by or accrued to a taxpayer contemplated in section 11E in respect of an event that will not recur in the following year of assessment, the taxpayer may for the purposes of determining taxable income deduct so much of that income as will be required to fund expenditure contemplated in section 11E that will be incurred in a future year of assessment.
(2) Any amount allowed to be deducted in terms of subsection (1) in any year of assessment must be deemed to be income received by or accrued to the taxpayer in the following year of assessment.
[S. 24E inserted by s. 18 of Act 91 of 1982, repealed by s. 18 of Act 90 of 1988 and inserted by s. 45 (1) of Act 7 of 2010.]
24F . . .
[S. 24F inserted by s. 17 (1) of Act 85 of 1987, amended by s. 19 (1) (a), (b), (c) and (e) of Act 90 of 1988, by s. 24 (1) (a), (b) and (c) of Act 101 of 1990, by s. 26 of Act 129 of 1991, by s. 30 (a) and (b) of Act 59 of 2000, by s. 25 (a), (b), (c), (d), (e) and (f) of Act 74 of 2002, by s. 32 (1) (a), (b), (c), (d), (e), (f), (g), (h), (i) and (j) of Act 31 of 2005, by s. 22 (a), (b), (c) and (d) of Act 8 of 2007 and by s. 51 (1) of Act 24 of 2011 and repealed by s. 67 of Act 31 of 2013 – date of commencement: 12 December 2013.]
24G Taxable income of toll road operators
(1) For the purposes of this section—
‘agreement’ means an agreement concluded by the taxpayer in terms of which the taxpayer is entitled to operate a toll road;
‘ancillary service’ in relation to a toll road, means any—
(a) vehicle service station, breakdown or repair facility; (b) shop or restaurant;
(c) park, recreation or rest area;
(d) emergency medical or rst-aid facility;
(e) hotel or other accommodation; or
(f) entertainment facility,
or other service or facility to which persons or vehicles may gain access from the toll road;
‘permanent work’ means—
(a) any earthwork, tunnel, bridge or structure forming
part of a toll road, including any building erected for the purpose of housing toll equipment, but excluding any such work constructed or erected solely for the purposes of the repair or maintenance of a toll road; and
(b) the reimbursement for the cost of acquisition or expropriation of land required for the purposes of the toll road; and
[Para. (b) substituted by s. 14 (1) (a) of Act 16 of 2004.] (c) any payment made to the South African National Roads Agency Limited in respect of the acquisition
of the right to operate a toll road;
[Para. (c) added by s. 14 (1) (b) of Act 16 of 2004.] ‘roadpavement’meanstheroadsurface,roadshoulders, [subbase], base course, wearing courses, road signage, road markings, lighting, guard rails, tolling equipment, emergency telephone systems, emergency telephone repeater stations, access roads to emergency telephone repeater station sites and other parts and road furniture of a toll road, excluding
any permanent work or ancillary service; ‘single toll road’ means—
(a) a single continuous toll road or portion thereof, or two or more toll roads or portions thereof which are not contiguous but which the Minister of Transport
Affairs, after consultation with the Minister of Finance, considers should be regarded as a single toll road; or
(b) two or more toll roads or portions thereof in respect of which a single agreement has been concluded with the South African National Roads Agency Limited;
[Para. (b) substituted by s. 14 (1) (c) of Act 16 of 2004.] ‘South African National Roads Agency Limited’ means the South African National Roads Agency Limited incorporated in terms of section 3 of the South African National Roads Agency Limited and National Roads Act,
1998 (Act 7 of 1998);
[De nition of ‘South African National Roads Agency Limited’ inserted by s. 14 (1) (d) of Act 16 of 2004.]
‘tolling period’, in relation to a toll road, means the initial period during which the South African National Roads Agency Limited has granted to the taxpayer or any other person the right to operate such toll road, including any period in respect of which such right was so granted in terms of an interim agreement concluded by the South African National Roads Agency Limited, but excluding any extension of such rst-mentioned period in respect of which a right of renewal may be exercised;
[De nition of ‘tolling period’ substituted by s. 14 (1) (e) of Act 16 of 2004.]
‘toll road’ means a road or section thereof, including any access road, crossroad or ramp constituting a necessary adjunct to such road or section, in respect of which the taxpayer derives or will derive income through the imposition of a toll or the exploitation of the right to impose a toll.
(2) Subject to the provisions of subsection (5), there shall be deducted in the determination of the taxable income derived by the taxpayer during any year of assessment—
(a) the sum of any annual allowances determined under
subsection (3) in relation to expenditure incurred during the current or any previous year of assessment in respect of any permanent work, road pavement, major rehabilitation of the road pavement or erection or construction or ancillary services in relation to a toll road;
(b) any expenditure incurred during the year of assessment in respect of the repair or maintenance of a toll road or any ancillary service in relation to such toll road, other than expenditure incurred on major rehabilitation of the road pavement;
(c) any interest (other than interest which is deductible under section 11 (a)) incurred by the taxpayer during the year of assessment in respect of any loan utilized for the purpose of nancing any expenditure contemplated in paragraph (a) or (b); and
[Para. (c) substituted by s. 41 of Act 45 of 2003.]
(d) any amount which has been disallowed in the preceding year of assessment under the provisions of
subsection (5):
Provided that the aggregate of the allowances which may be granted under paragraph (a) shall not exceed the total expenditure incurred by the taxpayer on such permanent work, road pavement, major rehabilitation of road pavement or erection or construction of ancillary services.
(3) For the purposes of subsection (2), an annual allowance shall be calculated in respect of expenditure incurred by the taxpayer on permanent works, road pavements, major rehabilitation of road pavements or the erection, construction, installation or provision of ancillary services during any year of assessment, such allowance to be equal to the expenditure so incurred during the year divided by the lesser of the number of years reckoned from the commencement of that year until the end of the
186 SAIT CompendIum oF TAx LegISLATIon VoLume 1