Page 56 - P6 Slide Taxation - Lecture Day 3 - VAT Part 1

Contribution to funds

• Allowed deductions for individuals with limitations of the

amount contributed.

• Any disallowed contributions(including provident fund)

due to the previous provisions are now deductible.

• Cannot create a loss with this deduction.

• Employers can claim deduction of payments on behalf of

their employees, former employee and the dependent of

the deceased employee.

• The cash equivalents of these payments by the employer

is included as a fringe benefit to the employees.

• A partnership is deemed employer of the partners for this

provision.

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