Tag: CorporateTax
Kickbacks are not tax deductible – state capture-related ruling
Can a business claim a tax deduction for money it pays as a bribe or kickback? Under section 23(o) of the Income Tax Act, the answer is no. Kickbacks are not tax deductible. The provision was introduced in 2005 to support South Africa’s anti-corruption efforts. It denies a tax deduction for any payment that amounts to corrupt activity under our main anti-corruption statute, the Prevention and Combating of Corrupt Activities Act 12 of 2004 (the PCCAA).
Taxing Times Survey reveals shifting dynamics in the tax landscape
South Africa’s corporate tax environment is undergoing a significant transformation. As the South African Revenue Service (SARS) accelerates its modernisation agenda and sharpens its enforcement posture, businesses now face a dual reality. Businesses experience improved efficiency through digital platforms. Yet they also confront increased complexity and scrutiny during interactions with the tax authority.
