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IN 41 – 60

Interpretation Notes are intended to provide guidelines to stakeholders (both internal and external) on the interpretation and application of the provisions of the legislation administered by the Commissioner.

These Notes will ultimately replace the existing General Notes and Practice Notes, as well as internal Circular Minutes, to the extent that they relate to the interpretation of the various laws. The Notes will be amended when necessary in line with policy developments and changes in legislation.​

​Number​Description​Applicable Legislation ​
IN ​41
(Issue 3)
​Application of the VAT Act to the gambling industry​​Value-Added Tax Act, 1991

​Sections 1(1), 8(13), 
8(13A), 9(3)(e),

16(3)(a), (d) and (e), 17(2)(a), (c) and 72
​​IN 42
(Issue 2)
​The supply of goods and/or services by the travel and tourism industryValue-Added Tax Act, 1991​Sections 7(1)(a), 
11(1)(a) and 11(2)(l)​
​​IN 43
(Issue 8)
​Circumstances in which certain amounts received or accrued from the disposal of shares are deemed to be of a capital natureIncome Tax Act, 1962​Section 9C​
IN 44
(Issue 3)
​Public benefit organisations (PBOs): Capital gains tax (CGT)Income Tax Act, 1962​Paragraph 63A of the Eighth Schedule​

IN 45
(Issue 3)

​Deduction of security expenditure

Income Tax Act, 1962​​Sections 11(a) and (e), 18A, 22(8), 23(b) and (g), 24D,  
paragraphs 2(a), (b), (e), (f) and (h) of the Seventh Schedule, paragraphs 20 and 53 of the Eighth Schedule and Part II of the Ninth Schedule
IN 46
(Issue 4)​

​Amalgamation of amateur and professional sporting bodies

Archived on 23 June 2015The conditions and requirements relating to the amalgamation transactions as explained in the Note are no longer relevant as the period within which the amalgamation transaction had to be concluded, has lapsed.

​​Income Tax Act, 1962Sections 10(1)(cN), 11, 11E and 30​
IN 47
(Issue 5)

​Wear-and-tear or depreciation allowance

​Income Tax Act, 1962​Section 11(e)
IN ​48 
(Issue 3)
​Instalment credit agreements and debtors’ allowanceIncome Tax Act, 1962​Section 24​
​IN 49
(Issue 2)

​Documentary proof required to substantiate a vendor’s entitlement to “input tax” or a deduction as contemplated in section 16(2)

Archived on 1 April 2016
– The Interpretation Note will be incorporated into an Interpretation Note setting out the required documentary proof to be obtained and retained by a vendor to substantiate the vendor’s entitlement to a deduction under section 16(3)(c)-(n).
​Value-Added Tax Act, 1991Section 1, definition of “input tax”‘ read with section 16(1) to (3)​
IN 50​Deduction for scientific or technological research and developmentIncome Tax Act, 1962​Section 11D​
IN 51
(Issue 5)
​​Pre-trade expenditure and lossesIncome Tax Act, 1962​Sections 11, 11A and 23​

IN 52
(Issue 3) 

​Approval to end a tax period on a day other than the last day of a month

​Value-Added Tax Act, 1991​Section 27(6) – 
proviso (ii) and
 proviso (iii)
IN 53
(Issue 3)
​Limitation of allowances granted to lessors of affected assetsIncome Tax Act, 1962​Section 23A​
IN 54
(Issue 2)

​Deductions – Corrupt activities, fines and penalties

​Income Tax Act, 1962​Section 23(o)(i) and (ii)
IN 55
(Issue 2)

​Taxation of directors and employees on vesting of equity instruments

Income Tax Act, 1962​
​Sections 8C and
paragraph 11A of the Fourth Schedule;
paragraph 2(a) of the Seventh Schedule
IN 56 
(Issue 2)
​Recipient-created tax invoices; credit and debit notesValue-Added Tax Act, 1991​
​Sections 20(2) and
IN 57​Sale of an enterprise or part thereof as a going concernValue-Added Tax Act, 1991​​
​Sections 8(7), 8(16),
11(1)(e) and 18A
IN 58
(Issue 2)​
​The Brummeria case and the right to use loan capital interest freeIncome Tax Act, 1962​​Section 1, definition of “gross income”
​IN 59​Tax implications of the receipt or accrual of government grants and government scrapping paymentsIncome Tax Act, 1962​​Section 1, definition of “gross income”; sections 10 and 23(n)
IN 60​ (Issue 2)​Loss on disposal of qualifying depreciable assetsIncome Tax Act, 1962​Sections 11(o), 20B and 24M​(1)

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