| (1) |
There must be allowed to be deducted by a person any amount actually incurred during the year of assessment in which that expenditure is incurred, subject to subsection (3), in respect of— |
| (a) |
the construction of any road or the erecting of any fence and a foundation or supporting structure designed for such a fence for the purpose of trade of that person of generation of electricity which exceeds 5 megawatts from— |
| (iii) |
hydropower to produce electricity of not more than 30 megawatts; or |
| (iv) |
biomass comprising organic wastes, landfill gas or plant material; or |
| (b) |
improvements (other than repairs) to— |
| (i) |
any road or fence contemplated in paragraph (a); or |
| (ii) |
foundation or supporting structure designed for such a fence, subject to subsection (2). |
| (2) |
For the purpose of any deduction under subsection (1)— |
| (a) |
the foundation or supporting structure designed for a fence must be constructed in such manner that the foundation or supporting structure is or should be regarded as being integrated with that fence; and |
| (b) |
the useful life of the foundation or supporting structure is or will be limited to the useful life of that fence. |
| (3) |
For purposes of deduction under subsection (1) any expenditure— |
| (a) |
actually incurred by that person prior to the commencement of and in preparation for carrying on that trade; |
| (b) |
which would have been allowed as a deduction in terms of subsection (1) had the expenditure been incurred after that person commenced carrying on that trade; and |
| (c) |
which was not allowed as a deduction in any previous year of assessment, |
shall be allowed as a deduction in terms of this section.
[Section 12U inserted by section 36 of the Taxation Laws Amendment Act, 2016 (Act No. 15 of 2016) - effective 1 April 2016]
Statistics Act, 1999
