2017 Amendments

The new section 19 of the Income Tax Act and paragraph 12A of the Eighth Schedule are extremely complicated. It has taken me a day and a half to get through them. I will have to explain them at the seminars next week and in the new edition of Notes on South African Income Tax in very small bite-sized chunks, with extensive examples. Even changing the terms of a loan agreement could lead to recoupments for the borrower, depending on the circumstances. It is a pity that they were not in their current form in the draft amendments, so that people could have commented on them. To give credit where credit is due, I must say that the persons who drafted the provisions did a very good job.