INCOME TAX, BRIBES AND FINES

Are bribes, fines and such like deductible expenditure for income tax purposes? NO

In terms of the Income Tax Act, no deductions shall be made in respect of any expenditure incurred -

(i) where the payment of that expenditure or the agreement or offer to make that payment constitutes an activity contemplated in Chapter 2 of the Prevention and Combating of Corrupt Activities Act, 2004 (Act No. 12 of 2004); or

(ii) which constitutes a fine charged or penalty imposed as a result of an unlawful activity carried out in the Republic.

This section of the Income Tax Act is quite clear.

Greg Beykirch | Finance Manager

RENDER UNTO CEASAR WHAT IS DUE TO CEASAR.