(1) For the purposes of this section-
“airport asset” means any aircraft hangar, apron, runway or taxiway on any designated airport, and includes any earthworks or supporting structures forming part of such aircraft hangar, apron, runway or taxiway and any improvements to such aircraft hangar, apron, runway or taxiway; and
‘date of approval’ means the date of the approval contemplated in subsection (8);
11E. Deduction of certain expenditure incurred by sporting bodies
For the purpose of determining the taxable income derived by-
(a) any non-profit company as defined in the Companies Act; or
(b) an association of persons that has been incorporated, formed or established in the Republic,
from carrying on any sporting activities falling under a code of sport administered and controlled by a national federation as contemplated in section 1 of the National Sport and Recreation Act, 1998 (Act No. 110 of 1998), there shall be allowed as a deduction from the income of that company or association-
(i) expenditure, not of a capital nature, incurred by that company or association on the development and promotion, directly by that company or association ;or
(ii) any payment made to any other company or association contemplated in this section for expenditure to be incurred on the development and promotion,
of sporting activities contemplated in paragraph 9 of Part I of the Ninth Schedule falling under that code of sport.
“designated airport” means an airport approved by the Minister, in consultation with the Minister of Transport, as a designated airport by notice in the Gazette for purposes of this section; and
‘greenfield project’ means a project that represents a wholly new industrial project which does not utilise any manufacturing assets other than wholly new and unused manufacturing assets;
(x) any amounts which in terms of any other provision in this Part, are allowed to be deducted from the income of the taxpayer.
11sex. Deduction of compensation for railway operating losses
For the purpose of determining the taxable income derived by any taxpayer from carrying on any trade within the Republic, there shall be allowed as a deduction from the income of the taxpayer so derived the amount of any compensation due to Transnet Limited and paid by the taxpayer (whether directly or through any trade association of which the taxpayer is a member) in respect of any loss incurred by Transnet Limited in operating any railway line, if –
(a) such railway line was constructed under or in pursuance of a written agreement with Transnet Limited in terms of which Transnet Limited undertook to operate the railway line;
(b) the compensation so paid was paid in order to discharge an obligation under the said agreement to pay such compensation; and
(c) the taxpayer’s liability to pay such compensation was incurred in connection with his trade.
12. ……….
12A. ……….
“port asset” means any port terminal, breakwater, sand trap, berth, quay wall, bollard, graving dock, slipway, single point mooring, dolos, fairway, surfacing, wharf, seawall, channel, basin, sand bypass, road, bridge, jetty or off-dock container depot, and includes any earthworks or supporting structures forming part of such terminal, breakwater, sand trap, berth, quay wall, bollard, graving dock, slipway, single point mooring, dolos, fairway, surfacing, wharf, seawall, channel, basin, sand bypass, road, bridge, jetty or depot and any improvements thereto.
‘industrial project’ means a trade solely or mainly for the manufacture of products, goods, articles, or other things within the Republic that-
(a) is classified under ‘Section C: Manufacturing’ in version 7 of the Standard Industrial Classification Code (referred to as the ‘SIC Code’) issued by Statistics South Africa; or
[Paragraph (a) substituted by section 22 of Act 43 of 2014 effective on 20 January 2015]
(b) in the case of products, goods, articles or things which are not yet classified, the adjudication committee is of the view will be classified as contemplated in paragraph (a), but does not include –
(i) distilling, rectifying and blending of spirits (SIC Code 1101);
(ii) manufacture of wines (SIC Code 1102);
(iii) manufacture of malt liquors and malt (SIC Code 103);
(iv) manufacture of tobacco products (SIC Code 12);
(v) manufacture of weapons and ammunition (SIC Code 252);
(vi) manufacture of bio-fuels if that manufacture negatively impacts on food security in the Republic;
[Paragraph (b) substituted by section 22 of Act 43 of 2014 effective on 20 January 2015]
(w) expenditure incurred by a taxpayer in respect of any premiums payable under a policy of insurance (other than a policy of insurance that relates to the death, disablement or illness of an employee or director of the taxpayer arising solely out of and in the course of employment of such employee or director) of which the taxpayer is the policyholder, where-
[Words preceding subparagraph (i) substituted by section 22 of Act 22 of 2012 and section 19 of Act 17 of 2017 effective on 18 December 2017]
(i)
(aa) the policy relates to the death, disablement or illness of an employee or director of the taxpayer; and
[Item (aa) substituted by section 19 of Act 17 of 2017 effective on 18 December 2017]
(bb) the amount of expenditure incurred by the taxpayer in respect of the premiums payable under the policy is deemed to be a taxable benefit granted to an employee or director of the taxpayer in terms of paragraph 2(k) of the Seventh Schedule; or
(ii)
(aa) the taxpayer is insured against any loss by reason of the death, disablement or illness of an employee or director of the taxpayer;
[Item (aa) substituted by section 19 of Act 17 of 2017 effective on 18 December 2017]
(bb) the policy is a risk policy with no cash value or surrender value;
(cc) the policy is not the property of any person other than the taxpayer at the time of the payment of the premium;
[Paragraph (cc) substituted by section 17 of Act 43 of 2014 effective on 1 March 2015]
(dd) in respect of any policy entered into-
(A) on or after 1 March 2012, the policy agreement states that this paragraph applies in respect of premiums payable under that policy; or
(B) before 1 March 2012, it is stated in an addendum to the policy agreement by no later than 31 August 2012 that this paragraph applies in respect of premiums payable under that policy;