Section 11(gD) of the Income Tax Act provides a deduction for expenditure incurred under a licence that is required to carry on certain trades. The trades in question are the provision of telecommunication services, the exploration, production or distribution of petroleum and the provision of gambling facilities. The authorities obviously value the provision of gambling facilities!
The expenditure that qualifies for the deduction is that incurred to acquire a licence from the government of South Africa in the national, provincial or local sphere, or a qualifying institution or entity contemplated in the Public Finance Management Act 1 of 1999.
The expenditure must be incurred under the licence required to carry on the relevant trade. The deduction may not, for any one year, exceed a portion of the expenditure equal to the amount of the expenditure divided by the number of years for which the taxpayer has the right to the licence after the date on which the expenditure is incurred, or thirty years, whichever is less.
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.
MINIMUM REQUIREMENTS TO REGISTER
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.