Page 39 - P6 Slide Taxation - Lecture Day 6 - Groups, Interest And Practice Questions

INTEREST INCURRED ON SHARE

ACQUISITIONS

• The section only deems the interest to be:

 Incurred in the production of income; and

 To be incurred for the purposes of trade.

• The section does not determine the interest amount deductible.

• If the provisions of section 24O are met, the amount of interest

deductible is determined in terms of section 24J.

• Please note that this section 24J interest amount may possibly be

limited in terms of section 23N – but you do not need to know this
section. In other words, you just need to know that the interest

amount may be limited but you do not need to know how to

calculate the limitation.

39