Does a taxpayer, who earns independent contractor's remuneration under code 3616, as well as taxable income under code 3601 - from three, or four different employers, can qualify for home office expenses (S 11(a)) and depreciation (S 11(e))? The taxpayer
Important:
This answer is based on tax law for the year ending 28 February 2016.
Answer:
Section 23(m) (of the Income Tax Act) doesn’t apply where the individual rendered the services in the course of a trade carried on independently (as required by proviso (ii) to the definition of remuneration in paragraph 1 of the Fourth Schedule to the Income Tax Act). This is because the individual then didn’t derive remuneration (as required by section 23(m)). Where the code 3601 was used, it is an indication that the individual actually derived remuneration.
To the extent that section 23(m) doesn’t apply the individual will be able to make the deductions allowed under the Income Tax Act.