SARS issued a Draft Interpretation Note on the determination of the taxable income of certain persons from international transactions: Thin capitalisation for public comment which can be found here.
This Note provides taxpayers with guidance on the application of the arm’s length basis in the context of determining whether a taxpayer is thinly capitalised under section 31 and, if so, calculating taxable income without claiming a deduction for the expenditure incurred on the excessive portion of finance.
SAIT will be making a submission to SARS. Kindly provide your comments by email to firstname.lastname@example.org by no later than 28 June 2013.
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.