Does a period of six years constitute an appropriate write-off period?
50] The period over which an allowance in excess of R5 000 claimable in terms of the provisions of section 11(gA) of the Act may be claimed is regulated by the proviso thereto which provides as follows: – “Provided that – “(aa) where such expenditure exceeds R5 000, and was incurred – (A) before 29 October 1999, the allowance shall not exceed for any one year such portion of the amount of the expenditure as is equal to such amount divided by the number of years which, in the opinion of the Commissioner, represents the probable duration of use of the invention, patent, design, trade mark, copyright, other property or knowledge, or four per cent of the said amount, whichever is the greater.” On the basis that the broadcasting licence had been issued to the taxpayer for only a period of six years; the uncertainties surrounding the licensing process; doubts about the taxpayer’s ability to meet the demanding obligations that had been imposed by the IBA; and uncertainties about whether the l
