Page 15 - Test 1 Slides - 1. Introduction & Application Of Legislation
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INTRODUCTION & APPLICATION OF LEGISLATION
Interpretation rules
• The taxation rules (commonly referred to as provisions) contained
in the Income Tax Act are not always clear and straightforward.
• In practice, this often results in different interpretations by SARS,
taxpayers, accountants and the general public. Because of these
differences of opinion and grey areas in the Act, the courts are
often called upon to determine what the real intention of the
legislature was when the provisions were enacted.
• SARS, as the administrator of the Income Tax Act, also issues
binding general rulings, interpretation notes and practice notes
on certain of these taxation rules in order to provide taxpayers
with clarity and guidance. The need for interpretation will only
arise when a provision in the Income Tax Act is not clear.
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