Category: Section 23B (ITA) – Prohibition of double deductions

Section 23B

 

  1. Subsection (1) substituted by section 16 of Act 21 of 1994, section 29 of Act 30 of 2000 and section 18 of Act 20 of 2006.

 

  1. Subsection (3) added by section 16 of Act 21 of 1994 and substituted by section 39 of Act 45 of 2003 and section 18 of Act 20 of 2006.

 

  1. Subsection (4) added by section 42 of Act 7 of 2010 effective on 1 January 2011, (addition was repealed by section 163 of Act 24 of 2011 effective on 1 January 2011) and added by section 48 of Act 24 of 2011 effective on 1 April 2012.

 

  1. Subsection (5) added by section 48 of Act 24 of 2011 effective on 1 March 2012 and substituted by section 43 of Act 22 of 2012 effective on 1 March 2012.

 

  1. Section 23B inserted by section 25 of Act 129 of 1991.

Section 23B (ITA) – Prohibition of double deductions

Posted on by admin_kmos

23B.     Prohibition of double deductions

(1)     Where, but for the provisions of this subsection, an amount –

(a)     qualifies or has qualified for a deduction or an allowance; or

(b)     is otherwise taken into account in determining the taxable income of any person,

under more than one provision of this Act, that amount or any portion thereof, shall not be allowed or taken into account more than once in the determination of the taxable income of any person.

(2)     The provisions of subsection (1) shall not apply to expenditure in respect of which a deduction or an allowance has been determined, if any section under which such deduction or allowance is allowed, expressly requires such expenditure to be deductible under any other section as a prerequisite for a deduction under such section.

(3)     No deduction shall be allowed under section 11(a) in respect of any expenditure or loss of a type for which a deduction or allowance may be granted under any other provision of this Act, notwithstanding that –

(a)     such other provision may impose any limitation on the amount of such deduction or allowance; or

(b)     that deduction or allowance in terms of that other provision may be granted in a different year of assessment.

(4)       ……….

[Subsection (4) added by section 42 of Act 7 of 2010 effective on 1 January 2011, repealed by section 163 of Act 24 of 2011 effective on 1 January 2011), re-added by section 48 of Act 24 of 2011 and deleted by section 34 of Act 43 of 2014 effective on 1 January 2014]

(5)     No deduction shall be allowed under section 11(a) in respect of any expenditure incurred by a person in respect of any premium paid under a policy of insurance, where the policy relates to death, disablement or illness of an employee or director, or former employee or director, of the person that is the policyholder (other than a policy that relates to death, disablement or illness arising solely out of and in the course of employment of the employee or director).

[Subsection (5) added by section 48 of Act 24 of 2011 and substituted by section 43 of Act 22 of 2012 and section 36 of Act 17 of 2017 effective on 18 December 2017]