Taxpayers may deduct an allowance for certain obligations to incur future expenditure in terms of section 24C of the Income Tax Act. This provision has been the subject of a number of recent cases, the latest being C:SARS v Clicks Retailers (Pty) Ltd. In this case the SCA ruled in favour of SARS in relation to the application of section 24C to obligations in terms of a customer loyalty scheme. This article briefly reviews this case and the reasoning followed by the court.
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