SARS intends to withdraw practice notes on interest paid on moneys borrowed and deduction of fees paid to accountants

The Practice Notes, which SARS intends withdrawing are PN 31 and PN 37.

Practice Note 31 of 1994 allows the deduction of interest paid on moneys borrowed.

Reasons for withdrawal of PN 31: There has been increasing abuse of the concession provided for in PN 31 where taxpayers have relied on the PN to structure transactions or undertake transactions to obtain a deduction of interest or expenditure incurred, which would not otherwise have been allowed as a deduction under the Income Tax Act 58 of 1962.

You can read Practice Note 31 here:

Practice Note 37 of 1995 allows the deduction of fees paid to accountants, bookkeepers, and tax consultants for the completion of income tax returns.

Reasons for withdrawal of PN 37: The introduction of the Tax Administration Act 28 of 2011 (TA Act) brought about the term, “registered tax practitioner”. The effect of this introduction means that only persons that are “registered tax practitioners” as defined, may provide tax advice or assist in completing a tax return for a fee. Therefore, PN 37 in its current form does not incorporate the requirements of the TA Act.

You can read Practice Note 37 here:

Comments are invited by 15 December 2022 and should be sent to

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