Section 86: Excessive remuneration to shareholder or director
consolidated text (as at 2017, amended since). juris shows the text as it was consolidated; it does not confirm that this is the law in force today.
86. Excessive remuneration to shareholder or director
Where any sum paid or credited by a company, being or purporting to be
remuneration for services rendered by a person who is a shareholder or director
of the company, exceeds the amount which in the opinion of the DirectorGeneral is reasonable, the amount of the excess shall not be an allowable
deduction and shall be deemed to be a benefit referred to in section 86A
received by that person as a shareholder of the company.
[S. 86 amended by s. 11 (g) of Act 23 of 2001 w.e.f. the income year commencing
on 1 July 2001.]
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Questions this section answers
- Can my company be refused a deduction if it pays a director or shareholder more than reasonable pay?