A client of mine went overseas for training, he paid for all of it, and got approval from his employer, is he able to claim any of these expenses on his tax return, as he was not reimbursed by the employer at all?
Important:
This answer is based on tax law for the year ending 28 February 2020.
Answer:
We accept that the expense in not capital in nature. You alluded to that. If it was, then it would not qualify for a deduction. But, from the information provided, the individual is an employee.
Under section 23(m), of the Income Tax Act, no deductions shall in any case be made in respect of … any expenditure, loss or allowance, contemplated in section 11, which relates to any employment of, or office held by, any person (other than an agent or representative whose remuneration is normally derived mainly in the form of commissions based on his or her sales or the turnover attributable to him or her) in respect of which he or she derives any remuneration, as defined in paragraph 1 of the Fourth Schedule, other than …
None of the specifically provided expenses, following the “other than” part, includes training. So, even if it should have qualified to be deducted, section 23(m) would prohibit that.