Page 141 - P6 Slide - Taxation - Lecture Day 1

Solution

• Under s 19(6) the reduction amount of the

debt that funded the expenditure incurred in

respect of the second-hand machinery is

deemed, for the purposes of s 8(4)(a), to be

an amount that has been recovered or

recouped in the 2015 year of assessment, but

only to the extent that any allowances have

previously been granted under the Act. The

recoupment under s 19(6) is accordingly

restricted to R400 000.

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