S.L. 123.198 Art. 4Allowable deductions.

(1) In the computation of the income derived from an assignment to which these rules apply, deductions shall only be allowable in respect of the following expenses, to the extent that they are incurred by the assignor and are not reimbursed or reimbursable by any other person:

(a) brokerage fees in respect of the said assignment;

(b) where the assignor was not a party to the promise of sale in question but had acquired his rights from another person in terms of a previous valid assignment, the consideration, if any, which he may have paid to that other person for the acquisition of those rights in terms of that previous assignment.

(2) The expenses mentioned in sub-rule (1) shall not be allowable as a deduction unless:

(a) the assignor produces to the notary or advocate who authenticates the written agreement a signed receipt that shows the date of the payment, the name, identification document number and address of the person to whom the payment was made and the amount paid;

(b) as regards the payment of a consideration for a previous assignment as mentioned in sub-rule (1)(b), the assignor of the subsequent assignment also produces to the said notary or advocate a copy of the agreement under which the previous assignment had been made;

(c) the said notary or advocate records the details mentioned in paragraph (a) in the notice of the assignment and produces to the Commissioner, together with that notice, a certified copy of the receipt mentioned in paragraph (a) as well as, where applicable, a certified copy of the previous assignment mentioned in paragraph (b).