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Deductions, Allowances & Inclusions - Coggle Diagram
Deductions, Allowances & Inclusions
General Deductions
s11(a)
-Expenditure & Losses
-Actually Incurred
-In the Production of Income
-Not of a Capital Nature
s23
-Negative test
Special Deductions
s11(cA) Restraint of Trade Pmts
-deductible for Co. if included in GI of EE
-lesser of amount/yrs or amount/3
s11(gB) Patents, Designs & Trade Marks
-Registration costs of intangibles are deductable in full in yr. incurred
s11(c) Legal Expenditure
-Actually incurred
-iro any action, claim, dispute
-incurred in course of ordinary operations in trade
-not capital
-accompanying compensation are taxable/deductable
s11(gC) Acquisition of Intellectual Property
-On or after 1 Jan 2004
-Costs to acquire invention, patent, design, copyright, knowledge
-During YoA bought into use for 1st time by TP for his trade
-No allowance against TMs
-Allowance not apportioned
-If ≤ R5 000 then full deduction
s11(i) Bad Debts
-Debt must have gone bad
-Value of debt must have been included in I/C in CYoA or Prev. YoA
-Debt must be due to TP
-Only made in year debt goes bad
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s11(l) Contributions by ER to Pension, Provisions. or RAF
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