Page 71 - SAIT Compendium 2016 Volume1

s 8 INCOME TAX ACT 58 OF 1962 s 8
or granting of the allowance), the amount so actually incurred but limited to the amount of the allowance or advance paid or granted to meet those expenses; or
(ii) for each day or part of a day in the period during which that recipient is absent from his or her usual place of residence, such amount in respect of meals and other incidental costs, or incidental costs only, as the Commissioner may determine for a country or region for the relevant year of assessment by way of notice in the Gazette, but limited to the amount of the allowance paid or granted to meet those expenses: Provided that this subparagraph does not apply to the extent that—
(aa) the employer has borne the expenses (otherwise than by way of granting the allowance or advance) in respect of which the allowance was paid or granted for that day or part of that day; or
(bb) the recipient has proved to the Commissioner any amount of actual expenditure in respect of meals or incidental costs for that day or part of that day, as contemplated in subparagraph (i).
[Sub-para. (ii) substituted by s. 11 (1) (b) of Act 74 of 2002 and amended by s. 5 (a) of Act 20 of 2006.]
[Para. (c) amended by s. 4 (c) of Act 96 of 1985, by s. 5 of Act 65 of 1986, by s. 6 (b) and (c) of Act 85 of 1987 and by s. 5 (1) (b) of Act 101 of 1990 and substituted by s. 12 (1) (c) of Act 30 of 2002.]
(d) Any allowance granted to the holder of any public of ce contemplated in paragraph (e) to enable him to defray expenditure incurred by him in connection with such of ce shall for the purposes of paragraph (a) be deemed to have been so expended by him to the extent that expenditure relevant to such allowance and not otherwise recoverable by him has actually been incurred by him for the purposes of his of ce in respect of—
(i) secretarial services, duplicating services, stationery, postage, telephone calls, the hire of of ce accommodation and the maintenance of such accommodation;
(ii) travelling;
(iii) hospitality extended at any of cial or civic function
which the holder of such of ce is by reason of the
nature of such of ce normally expected to arrange;
(iv) . . .
[Sub-para. (iv) deleted by s. 12 (1) (d) of Act 30 of 2002.] (v) subsistence and incidental costs incurred in the
circumstances contemplated in paragraph (c). [Para. (d) amended by s. 6 (d) of Act 85 of 1987.]
(e) For the purposes of paragraph (d) the holder of a public of ce includes—
(i) the President, Deputy President, a Minister, Deputy Minister, a member of the National Assembly, a permanent delegate to the National Council of Provinces, a Premier, a member of an Executive Council or a member of a provincial legislature;
[Sub-para. (i) substituted by s. 4 (d) of Act 96 of 1985, by s. 6 (e) of Act 85 of 1987, by s. 6 (1) (a) of Act 21 of 1994 and by s. 14 (1) (a) of Act 53 of 1999.]
(ii) any member of a municipal council, a traditional leader, a member of a provincial House of Traditional Leaders and a member of the Council of Traditional Leaders; and
[Sub-para. (ii) substituted by s. 14 (1) (a) of Act 53 of 1999.] (iii) a person occupying the of ce of president, chairman or chief executive of cer of any non-pro tmaking organization which is organized on a national or regional basis to represent persons with common
SAIT CompendIum oF TAx LegISLATIon VoLume 1
interests and the funds of which are derived wholly or mainly from subscriptions of members or donations from the general public.
[Sub-para. (iii) substituted by s. 6 (b) of Act 141 of 1992.] (f) Where it is expected of any person contemplated in paragraph (e) (i) to defray any expenditure referred to in paragraph (d) out of his salary received as the holder of any public of ce, an amount equal to a portion (which shall be determined by the National Assembly or the President, as the case may be, as provided for in the Remuneration of Public Of ce Bearers Act, 1998 (Act 20 of 1998)) of such salary shall for the purposes of paragraph (d) be deemed to be an allowance granted to
such person.
[Para. (f) added by s. 6 (1) (b) of Act 21 of 1994 and substituted by s. 14 (1) (b) of Act 53 of 1999.]
(g) Where, during any year of assessment, any person contemplated in paragraph (e) has held a public of ce for less than 12 months, the amount determined in terms of paragraph (f), shall be reduced to an amount which bears to the relevant amount, the same ratio as the number of months (in the determination of which a part of a month shall be reckoned as a full month), for which the of ce was held bears to 12 months.
[Para. (g) added by s. 6 (1) (b) of Act 21 of 1994 and substituted by s. 17 (1) (a) of Act 30 of 2000 and by s. 12 (1) (e) of Act 30 of 2002.]
[Sub-s. (1) substituted by s. 5 (1) (a) of Act 121 of 1984.]
(2) . . .
[Sub-s. (2) amended by s. 6 (1) (a), (b) and (c) of Act 90 of 1962, substituted by s. 8 (a) of Act 85 of 1974, amended by s. 7 (1) (a) of Act 69 of 1975 and deleted by s. 6 (c) of Act 141 of 1992.]
(3) . . .
[Sub-s. (3) amended by s. 6 (1) (d) of Act 90 of 1962 and by s. 8 (b) and (c) of Act 85 of 1974 and deleted by s. 6 (c) of Act 141 of 1992.]
(4) (a) There shall be included in the taxpayer’s income all amounts allowed to be deducted or set off under the provisions of sections 11 to 20, inclusive, section 24D, section 24F, section 24G, section 24I, section 24J, section 27 (2) (b) and section 37B (2) of this Act, except section 11 (k), (p) and (q), section 12 (2) or section 12 (2) as applied by section 12 (3), section 12A (3), section 13 (5), or section 13 (5) as applied by section 13 (8), or section 13bis (7), section 15 (a) or section 15A, or under the corresponding provisions of any previous Income Tax Act, whether in the current or any previous year of assessment which have been recovered or recouped during the current year of assessment: Provided that the provisions of this paragraph shall not apply in respect of any such amount so recovered or recouped which has been—
[Words preceding the proviso substituted by s. 9 (1) (a) of Act 31 of 2013 – substitution deemed to have come into operation on 1 October 2012 and applies in respect of amounts in respect of expenditure incurred in respect of research and development that are recovered or recouped on or after that date.]
(i)
(ii) (iii)
included in the gross income of such taxpayer in terms of paragraph (jA) of the de nition of ‘gross income’;
applied to reduce any cost or expenditure incurred by such taxpayer in terms of section 19; or
previously taken into account as an amount that is deemed to have been recovered or recouped in terms of section 19 (4), (5) or (6).
[Para. (iii) added by s. 9 (1) (d) of Act 31 of 2013 — the addition deemed to have come into operation
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INCOME TAX ACT – SECTIONS