Page 5 - Chapter 23 - Interest

Scope of S24J

ONLY if incurred
for purposes of

When will s24J be applicable: trade

 Any form of financial arrangement Interest

 In terms of which one taxpayer expenditure

(issuer/borrower)

 Undertakes to another (holder/lender)

 To pay interest/a premium Interest income

received
S24J will be applicable to

 Natural person/trust – term of financial

arrangement > 12 months

 Companies – all financial arrangements