As the taxpayer is, based on the facts provided by, in receipt of remuneration (code 3601), we agree that section 23(m) of the Income Tax Act applies in this instance. It prohibits any deduction under section 11 (the membership fees paid by the individu
Important:
This answer is based on tax law for the tax year ending 28 February 2020.
Answer:
Note: code 3616 is used for “remuneration paid to an independent contractor”. Our guidance assumes that you are in fact carrying on an independent trade as required – see the relevant proviso to the definition of remuneration in paragraph 1 of the Fourth Schedule to the Income Tax Act and also Interpretation Note 17.
Section 23(m) of the Income Tax Act prohibits any deduction under section 11 (the membership fees paid by the individual to a professional body) if the expenditure relates to any employment of, or office held by, any person in respect of which he or she derives any remuneration, as defined in paragraph 1 of the Fourth Schedule. This prohibition doesn’t apply if the person is “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”. It would also not apply if you carried on an independent trade, as a tax practitioner.
You will then be able to make the deduction under section 11(a), if all the requirements are met, and section 23(m) would not apply.