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Non-deductible expenses

Every party has its wet blanket. Section 11(a)’s wet blanket is Section 23.

IN A previous article, we were celebrating the party of deductions that one can claim in terms of Section 11(a) of the Income Tax Act, the so-called ‘general deduction formula’.

Unfortunately, every party has at least one ‘wet blanket’—the one who cannot enjoy themselves and ends up making the other party-goers feel miserable. In Section 11(a)’s case, the party-pooper of note is Section 23.

This is the Section that will take certain expenditure that you’ve legitimately incurred, which complies will all the criteria outlined in Section 11(a), and then tells you that you can’t deduct it anyway.

Here are a few of those prohibitions that spoil the party:

Maintaining the taxpayer, their family, or establishment (Section 23(a))
I am sure that I am not the only tax practitioner who has had one of his ‘drop-dead gorgeous’ clients question whether…

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