Implementation of Geneva Conventions Act, 2012
R 385
Income Tax Act, 1962 (Act No. 58 of 1962)Chapter II : The TaxesPart I : Normal Tax24C. Allowance in respect of future expenditure on contracts |
| (1) | For the purposes of this section, "future expenditure" in relation to any year of assessment means an amount of expenditure which will be incurred after the end of such year— |
| (a) | in such manner that such amount will be allowed as a deduction from income in a subsequent year of assessment; or |
| (b) | in respect of the acquisition of any asset in respect of which any deduction will be admissible under the provisions of this Act. |
[Section 24C(1) substituted by section 42 of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015)]
| (2) | If the income of any taxpayer in any year of assessment includes or consists of an amount received by or accrued to him in terms of any contract and such amount will be utilised in whole or in part to finance future expenditure which will be incurred by the taxpayer in the performance of the taxpayer's obligations under such contract, there shall be deducted in the determination of the taxpayer's taxable income for such year such allowance (not exceeding the said amount) in respect of so much of such future expenditure as relates to the said amount. |
[Section 24C(2) substituted by section 42 of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015)]
| (3) | The amount of any allowance deducted under subsection (2) in any year of assessment shall be deemed to be income received by or accrued to the taxpayer in the following year of assessment. |
[Section 24C(3) inserted by section 18(1) of the Taxation Laws Amendment Act, 1980 (Act No. 104 of 1980) - effective 25 July 1980]
