Section 60: Bad debts and irrecoverable sums

60. Bad debts and irrecoverable sums (1) Subject to subsection (3), a company which derives gross income specified in section 10 (1) (b) in an income year may deduct— (a) the amount of a debt or sum which is proved to have become bad and to have been actually written off as a bad debt by the company in that income year; and (b) in the case of a bank, the amount of any irrecoverable loan due by— (i) a small and medium enterprise under the Small and Medium Enterprises Development Authority Act; and (ii) a company in liquidation in respect of which winding-up procedures have started. (2) Subject to subsection (3), a company which derives gross income, other than gross income specified in section 10 (1) (b), may deduct any debt or sum not received in an income year but which is deemed to be derived in that income year and which is proved to have become irrecoverable by the company. (3) Any amount allowed as a deduction under subsections (1) and (2) which is subsequently received by the company shall be deemed to be gross income derived in the income year in which it is received. [S. 60 amended by s. 18 (u) of Act 15 of 2006 w.e.f. 1 July 2007 in respect of the year of assessment commencing on 1 July 2007 and in respect of every subsequent year of assessment; s. 8 (r) of Act 37 of 2011 w.e.f. 1 January 2013 in respect of the year commencing on 1 January 2013 and in respect of every subsequent income year.]