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BPR 123: fibre optic cable to be used for electronic communications

17 October 2012   (0 Comments)
Posted by: SAIT Technical
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By SARS Legal & Policy

Binding Private Ruling (BPR 123) was issued by SARS on 11 October 2012.

The ruling deals with the question of whether a fibre optic cable to be used for electronic communications will constitute an "affected asset” as defined in section 12D(1) of the Act.

Proposed transaction

The Applicant (SA resident company) has been granted the right under an agreement to build and operate a fibre optic broadband cable communications network. Thisnetwork will transmit telephone and information technology communications (that is, internet, email, etc) to end-users at a commercially determined fee.


The fibre optic cable to be used for the transmission of electronic communications will qualify as an ‘affected asset' as defined under section 12D(1).

This binding private ruling is valid for a period of 5 years from 12 May 2012.

Click here to download BPR 123.


Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.


The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

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