Cactus Investments (Pty) Ltd. v Commissioner for Inland Revenue (1/97)
Cactus Investments (Pty) Ltd. v Commissioner for Inland Revenue (1/97) [1998] ZASCA 98; 1999 (1) SA 315 (SCA); [1999] 1 All SA 345 (A) (20 November 1998)
The Supreme Court of Appeal held that, under the Income Tax Act and common law principles, a lender becomes entitled to the right to receive interest on the stipulated future date as soon as the funds are made available to the borrower. The subsequent cession of rights does not affect the accrual of interest for tax purposes. The contractual terms did not alter the ordinary principles, and commercial realities or equitable considerations cannot override the clear wording of the statute. The majority judgment of the court a quo was correct in finding that the interest accrued to Cactus during…
Source excerpt
- Income Tax Act
- Accrual Of Interest
- Gross Income Definition
- Loan For Consumption
- Tax Assessment