Tag: TaxDeductibility
Tax deductibility – SCA rules on financing fees
On 7 September 2026, the Supreme Court of Appeal (SCA) handed down a significant judgment against the South African Revenue Service (SARS). The judgment confirmed that certain financing fees qualify for tax deductions under section 24J of the Income Tax Act, 58 of 1962.
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).
