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IN 61 – 80

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 Subject Applicable Legislation
IN 61 Remission of interest Value-Added Tax Act, 1991 Section 39(7)(a)
IN 62 Broad-based employee share plan Income Tax Act, 1962 Sections 8B, 10(1)(nC) and 11(lA)
IN 63
(Issue 2)
Rules for the translation of amounts measured in foreign currencies other than exchange differences governed by section 24I and the Eighth Schedule Income Tax Act, 1962 Sections 1(1), 6quat(4) and (4A), 6quin(4), 9A, 9D(6), 25D, 35A(5), 47J, 49H, 50H, 51H and 64N(4)
(Issue 4)

Income tax exemption: Bodies Corporate, Share Block Companies and Associations of persons managing the collective interests comment to all members Income Tax Act, 1962 Section 10(1)(e)
IN 65
(Issue 3)
Trading stock – Inclusion in income when applied, distributed or disposed of otherwise than in the ordinary course of
Income Tax Act, 1962 Section 22(8)
IN 66 Scholarships or bursaries Income Tax Act, 1962 Section 10(1)(q) and the Seventh Schedule
IN 67
(Issue 4)
Connected persons Income Tax Act, 1962 Section 1(1) – definition of “connected person”
IN 68 (Issue 3) Provisions of the Tax Administration Act, 2011, that did not commence on 1 October 2012 under Proclamation No. 51 in Government Gazette 35687 Tax Administration Act, 2011 Chapter 12 and Schedule 1
IN 69
(Issue 3)
Game farming Income Tax Act, 1962 Sections 9HA, 25, 25C, 26 and First Schedule
IN 70 (Issue 2)
Supplies made for no consideration Value-Added Tax Act, 1991
Section 1 Definitions of “enterprise”, “taxable supply”, “input tax”, “donation” and “consideration”, section 10(4) and
IN 71 Long service awards Income Tax Act, 1962
Paragraphs 2(a),
5(2)(b) and 5(4) of the Seventh Schedule
IN 72 Right of use of motor vehicle Income Tax Act, 1962 Paragraph 7 of the Seventh Schedule
IN 73
(Issue 3)
Tax implications of rental income from tank containers Income Tax Act, 1962 Sections 11(a), 11(e), 20(1), 23A and 25D
IN 74
(Issue 2)
Deduction and recoupment of expenditure on repairs Income Tax Act, 1962 Sections 11(d) and
IN 75
(Issue 3)
Exclusion of certain companies and shares from a “group of companies” as defined in section 41(1) Income Tax Act, 1962 Sections 1 and 41(1)

IN 76

Tax treatment of tips for recipients, employers and patrons Income Tax Act, 1962

Section1(1) – definition of the term “gross income”

Fourth Schedule – paragraph 1 definitions of “remuneration”, “employer”, “employee”, “provisional taxpayer”; paragraph 2(1)

IN 77 Taxable benefit: Use of employer-provided telephone or computer equipment or employer-funded telecommunication services Income Tax Act, 1962 Paragraph 2(b), (e) and (h); Paragraphs 6, 10 and 31(1) of the Seventh Schedule
IN 78 Allowance for future expenditure on contracts Income Tax Act, 1962 Section 24C
IN 79
(Issue 3)

Produce held by nursery operators

Income Tax Act, 1962 Sections 9A, 25, 25C and 26 and Paragraphs 2, 3, 4 and 9 of the First Schedule
IN 80 The income tax treatment of stolen money Income Tax Act, 1962 Sections 11(a) and (c), 23 (c) and (g) and
1(1) – definition of “gross income”

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