(2)     No deduction is allowed in respect of any premium incurred by a person in terms of a policy to the extent that the premium is not taken into account as an expense for the purposes of financial reporting pursuant to IFRS in either the current year of assessment or a future year of assessment.

[Subsection (2) substituted by section 60(1)(d) of Act 31 of 2013 effective on 1 April, 2014 and applicable in respect of premiums incurred on or after that date]

(3)     Where policy benefits are received by or accrue to a person in terms of a policy during a year of assessment, and where that person has been denied, whether in the current or any previous year of assessment, a deduction in terms of section 23L(2) for any premiums paid under such policy, there must be included in the gross income of that person an amount equal to the aggregate amount of all policy benefits received by or accrued to that person during that year of assessment and previous years of assessment in respect of that policy, less-

(a)     the aggregate amount of premiums incurred in terms of that policy that were not deductible in terms of subsection (2); and

(b)     the aggregate amount of policy benefits in respect of that policy that were included in the gross income of that person during previous years of assessment.

[Subsection (3) substituted by section 60(1)(d) of Act 31 of 2013 and amended by section 26(1) of Act 23 of 2020 effective on 1 January, 2021 and applicable in respect of years of assessment commencing on or after that date]