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Deductions (Prepaid Expenditure)
• The apportionment is as follows =
• Months in the YOA of which the services were
rendered/Total number of months in which the services is
to be rendered*Total expenditure.
• A taxpayer will not apportion in the following
circumstances:
• A)if the goods or services are to be supplied within 6
months after the year end.
• B)if the expenditure relates to amounts imposed by the
legislation . Amounts required to be paid by the law.
• If the aggregate of the amounts disallowed as a result of
23(h) do not exceed 100 000.
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