Interpretation Notes – numbers 41-60

Interpretation Notes are intended to provide guidelines to stakeholders (both internal and external) on the interpretation and application of the provisions of the legislation administered by the Commissioner.
These Notes will ultimately replace the existing General Notes and Practice Notes, as well as internal Circular Minutes, to the extent that they relate to the interpretation of the various laws. The Notes will be amended when necessary in line with policy developments and changes in legislation.​
The groups of Interpretation Notes can be accessed from here or on the navigation pane above:
​Number ​Description ​Applicable Legislation ​
IN ​41 ​Application of VAT to the Gambling Industry ​Value-Added Tax Act, 1991 ​Section 1, 8(13) and (13A), 9(3)(a),
16(3)(a), (d) and (e), 17(2)(a) and (c), and 72
IN 42 ​The supply of goods and/or services by the Travel and Tourism Industry ​​Value-Added Tax Act, 1991 ​Sections 1, 7 and 11
IN 43 ​Circumstances in which certain amounts received or accrued from the disposal of shares are deemed to be of a capital nature ​Income Tax Act, 1962 ​Section 9C
IN 44 ​Public Benefit Organisations (PBOs): Capital Gains Tax (CGT) ​Income Tax Act, 1962 ​Paragraph 63A of the Eighth Schedule
IN 45 ​Deduction of security expenditure Income Tax Act, 1962​ ​Sections 11(a) and (e), 22(8), 23(b) and (g), 24D and paragraphs 20 and 53 of the Eighth Schedule
IN 46 ​Amalgamation of amateur and professional sporting bodiesNote:
This Issue 4 was only updated to amend references to section 1 to be section 1(1) as a result of the implementation of the Tax Administration Act, 2011
​Income Tax Act, 1962 ​Sections 10(1)(cN), 11, 11E and 30
Notice of modification ​Notice of modification of Binding General Ruling: Interpretation Note 47 dated 28 July 2009 ​See Interpretation Note 47 ​
​IN 47 ​Wear-and-tear or depreciation allowance ​Income Tax Act, 1962 ​Section 11(e)
IN ​48 ​Instalment credit agreements and debtors’ allowance ​Income Tax Act, 1962 ​Section 24
IN 49 ​ Documentary proof required to substantiate a vendor’s entitlement to ‘input tax’ or a deduction as contemplated in section 16(2) ​Value-Added Tax Act, 1991 ​Section 1 – definition of ‘input tax’ read with section 16(1) to (3)
IN 50 ​Deduction for scientific or technological research and development ​Income Tax Act, 1962 ​Section 11D
IN 51 ​Pre-trade expenditure and losses ​Income Tax Act, 1962 ​Section 11A
IN 52 ​Tax periods ​Value-Added Tax Act, 1991 ​Section 27
IN 53 ​Limitation of allowances granted to lessors of affected assets ​Income Tax Act, 1962 ​Section 23A
IN 54 ​Deductions – Corrupt activities, fines and penalties ​Income Tax Act, 1962 ​Section 23(a)
IN 55 ​Taxation of directors and employees on vesting of equity instruments Income Tax Act, 1962​ ​Sections 8C and
10(1)(nD); paragraph 11A of the Fourth Schedule; paragraph
2(a) of the Seventh Schedule
IN 56 ​Recipient-created tax invoices; credit and debit notes ​Value-Added Tax Act, 1991 ​Sections 20(2) and
21(4)
​IN 57 ​Sale of an enterprise or part thereof as a going concern ​Value-Added Tax Act, 1991 ​Sections 8(7), 8(16) 11(1)(e) and 18A
IN 58 ​The Brummeria case and the right to use loan capital interest free ​Income Tax Act, 1962 ​Section 1, definition of ‘gross income’
IN 59 ​Tax implications of the receipt or accrual of government grants and government scrapping payments ​Income Tax Act, 1962 ​Section 1, definition of ‘gross income’; sections 10 and 23(n)
IN 60 ​Loss on disposal of depreciable assets ​Income Tax Act, 1962 ​Sections 11(o), 20B and 24M

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