n SA Mercantile Law Journal = SA Tydskrif vir Handelsreg - The scope of the expression 'necessarily incurred' in section 18(1) of the Income Tax Act




Section 23 of the Income Tax Act prohibits, in relation to any year of assessment, a deduction of 'the cost incurred in the maintenance of any taxpayer, his family or establishment' as well as any 'domestic or private expenses'. The cumulative effect of these prohibitions is that, for income tax purposes, it renders non-deductible such expenses as are in the nature of, for example, medical costs incurred by a taxpayer in respect of himself or his spouse or child or on behalf of any other dependant.


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