Page 18 - TAX4862/2 APPLIED TAXATION

GENERAL DEDUCTION FORMULA

Actually incurred

 It is in the tax year in which the liability for the

expenditure is incurred, and not in the tax year in

which it is actually paid (if paid in a subsequent year),

that the expenditure is actually incurred for the

purposes of s 11(a).

 (Caltex Oil (SA) Ltd v SIR)

Remember
s23H

 If there is no definite and absolute liability during the

year of assessment to pay an amount, expenditure has
not been ‘actually incurred’.

 (Nasionale Pers v KBI)

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