Bella Italia (Pty) Ltd operates as a franchise restaurant in a busy shopping mall in Pretoria. According to the contract between them and the franchisor, the restaurant must pay monthly franchise fees for various franchise services received. In addition, R80 000 must be paid each year by 30 April if a (verified and audited) turnover of more than R4million for the financial year was reached. The accountant decided to be prudent and paid the R80 000 on 26 February 2023 without knowing the annual turnover amount and deducted it for the purposes of calculating the taxable income for the 28 February 2023 year of assessment .

Discuss and conclude whether the expenditure of R80 000 is deductible by Bella Italia (Pty) Ltd in terms of the general deduction formula (s11(a) read with s23) for the year of assessment ending 28 February 2023. You do not need to list and discuss whether the amount is not of a capital nature and may assume that this requirement is met. Strengthen your argument with reference to relevant case law only as pertaining to the main issue in the question.