ARTICLE · 18 JANUARY 2018

Tax Issues: Socio-Economic And Development Expenditure

Pieter van der Zwan & Associates

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South African businesses play an integral role in socio-economic upliftment and development of communities. Expenditure incurred for this purpose may have tax implications for the business involved.

South AfricaTax

Pieter Van Der Zwan

South African businesses play an integral role in socio-economic upliftment and development of communities. Expenditure incurred for this purpose may have tax implications for the business involved. This article considers some lessons for businesses from two recent contrasting developments in the form of a binding private ruling (BPR282) and a tax court case.

South African businesses play an integral role in socio-economic upliftment and development of communities, in particular those communities that were disadvantaged by the previous political dispensation. This role may be fulfilled on a voluntary basis, but is often required by BBEEE codes and other business-related arrangements. Expenditure incurred for this purpose may have tax implications for the business.

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