Depreciation allowances for tax purposes in periods of less than a year

In tax legislation, a depreciation allowance is applied in three provisions and results reduction of taxable amounts. A calculated for the period an employer owned vehicle prior to granting right use employee (paragraph 7(1) Seventh Schedule Income Tax Act section 10(13) Value-Added Act) or asset was leased acquisition by lessee (section 8(5)(bB) Act). Both periods could consist include less than year. The uncertainty interest this article whether should be disregarded not when year concerned. implications, wording, context were considered with due regard limited current guidance offered SARS. findings suggest that taxpayer following application all would correct. line relating paragraph Act, contemplated disregard Contrary guidance, different argued as affording opportunity apply result lower recoupment inclusion income normal purposes and, result, beneficial taxpayers.