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Call for comment: Draft Interpretation Note on allowance for future expenditure on contracts

20 February 2014   (0 Comments)
Posted by: Author: SARS Legal and Policy
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Author: SARS Legal and Policy

SARS published Draft Interpretation Note - Allowance for future expenditure on contracts (section 24C of the Income Tax Act, 1962) for public comment on the 20th of February 2014. This draft is now released for a second round of comment.

The draft was released for comment in 2013. SARS received requests to delay finalisation in order to allow for additional submissions on the interaction between trading stock and section 24C.

This Note provides guidance on the interpretation and application of section 24C when income is received in advance, while the expenditure under the contract will only be incurred in a subsequent year of assessment.

The SAIT will be making a submission to SARS. Kindly submit all comments to by no later than 28 May 2014.

Click here to download the Draft Interpretation Note


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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