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Allowances in terms of section 12C and 13 not claimed in year asset was brought into use

15 October 2014   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

Q: In the event that a taxpayer was not aware of an allowance that it was eligible to claim (specifically S12C and S13 capital allowances), and is advised of the allowance in the current tax year;

Could the taxpayer claim the full allowance as if it was brought into use for the first time that year, or would he only be entitled to the remainder of the allowances (year 2, 3, etc.)?

A: The allowances in terms of section 12C and 13 (and in fact any other) must be deducted in the year the relevant ‘asset’ was "brought into use for the first time by the taxpayer for the purposes of his trade (other than mining or farming) and is used by him directly in a process of manufacture carried on by him” (section 12C) or the "building (or improvements) was wholly or mainly used by the taxpayer during the year of assessment for the purpose of carrying on therein in the course of his trade (other than mining or farming) any process of manufacture”.  

It would be incorrect to make the deduction in a subsequent year of assessment.

The fact that the deduction was not made could be a bona fide error and the taxpayer can use the request correction facility (on eFiling) to make the deduction in the correct year.  This option is only available for 3 years after the date of the assessment.  If the request correction facility is not available an objection must be made (again subject to the 3 year limitation).  

Disclaimer: Nothing in this query and answer should be construed as constituting tax advice or a tax opinion. An expert should be consulted for advice based on the facts and circumstances of each transaction/case. Even though great care has been taken to ensure the accuracy of the answer, SAIT do not accept any responsibility for consequences of decisions taken based on this query and answer. It remains your own responsibility to consult the relevant primary resources when taking a decision.


Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.


The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

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