Actually Incurred ( Case Law)

Question 1

Caltex Oil (SA) Ltd

Answer 1

Expenditure actually incurred is not necessarily expenditure actually paid during the year of assement.

Question 2

Edgar’s Stores Ltd

Answer 2

If there is an unconditional legal obligation to pay an expense before it will be actually incurred for purposes of section 11(a) of the Income Tax Act.

Question 3

Nasionals Pers Bpk

Answer 3

If there is no definite and absolute liability during the year of assessment to pay an amount expenditure has been actually incurred

Question 4

Golden Dumps (Pty) Ltd

Answer 4

If the liability to pay a claim is not unconditional where validity to claim is genuinely disputed and if at the end of the relevant tax year the dispute is unresolved.

Question 5

Labat 2011 SCA

Answer 5

Issuing of shares does not reduce the assets of a company and doesn’t qualify as expenditure or as an expense actually incurred.