| 1 |
In the past in terms
of s16A of the Act, a deduction was allowed of all expenditure incurred by a
dentist attending any courses or congresses outside the Republic. This privilege was
strictly limited to dentists and doctors. |
| 2 |
The Commissioner for
South African Revenue (SARS) recommended to the Minister of Finance that s16A be
deleted as in his view it granted preferential treatment to dentists which could not be
justified. In their view the provision was discriminatory and unconstitutional. |
| 3 |
A delegation from
the Association together with a delegation from the Medical Association met with SARS
(Pretoria) on the 28 April 1998 with regard to the proposed deletion. Prior to the
meeting, we submitted written representations motivating the need for the retention of the
same or similar section. |
| 4 |
We also informed
SARS who were unaware of the Council’s plans to recommend to the Minister to amend
the Act governing the professions, to provide for Rules relating to Continuing Education
and Training in Medicine and Dentistry. |
| 5 |
In terms thereof,
practitioners will be required as a prerequisite for continuing their periodic
registration to provide proof to the Council of sustained competence, one of the methods
of accumulating sufficient points was to attend overseas courses and congresses.. These
rules have now been gazetted on 24 July 1998 for comment and input. |
| 6 |
s16A of the Act was
repealed on 29 June 1998. SARS have indicated that deductions of expenditure incurred by
dentists will in future be considered under s 11 (b) of the Act which provides for a
deduction in respect of "expenditure and losses actually incurred outside the
Republic in the production of income, provided such expenditure and losses are not of a
capital nature". |
| 7 |
Therefore
expenditure incurred by dentists in attending courses or congresses conducted outside
South Africa as part of a continuing educational programme designed to keep such persons
abreast of developments relating to their profession and which do not lead to any
recognised educational qualifications, may be considered as a deduction from income in
terms of s 11 (b) of the Act. |
|
Full-Time
Dentists |
| 8 |
The
Association’s representations were naturally also made on behalf of its members in
full-time employment. |
| 9 |
SARS also indicated
in view of the fact that the provisions of the Continuing Education and Training will be
applicable to dentists in full-time employment of tertiary institutions or of the State,
the deduction will be allowable in their cases. However, the SARS is only willing to
consider these deductions for full-time dentists only as from 1999, the proposed date of
implementation of Continuing Education and Training regulations. |
| 10 |
In addition, the
Council will have to certify that the applicant dentist is in full-time employment and:- |
|
1 |
registered as a
dentist in terms of the Act; |
|
2 |
has incurred the
expense in the year of the assessment and that such course or congress, and:- |
|
|
1 |
has been approved by Council and
will serve as a continuing training programme which is aimed at keeping the dentist
abreast of developments in relation to dentistry; |
|
|
2 |
does not last longer than 6
consecutive weeks; and |
|
|
3 |
is directly connected with the
dentist’s employment and in pursuance of their obligations in terms of the proposed
regulations. |
| 11 |
Naturally, the
deduction will not be allowed if full-time dentists who conduct their profession under
contracts of employment and the costs are borne by their employers. The employer will be
entitled to claim the expenditure as a deduction against his income for tax purposes. |
| 12 |
We queried certain
aspects of the letter received from SARS and the following will apply:- |
|
1 |
approval for
courses and congresses by the Council will not be a prerequisite for allowing deductions,
as it is no longer a special deduction, but a general deduction and approval is not
required from other professional bodies; |
|
2 |
SARS believes
medical and dental courses and congresses are the most organised of all professional
persons, therefore it would be desirable for the Council or the Association to approve
courses conducted in and outside South Africa; |
|
3 |
s16A will still
apply to expenditure incurred prior to 29 June 1998, and approval must be obtained in the
usual manner. |
| 13 |
A practice note in
respect of section 11 (a) and 11(b) deductions for continuing educational courses and
congresses for professional persons conducted in or outside South Africa will be issued
shortly by SARS. We will keep you informed. |