Browsing by Author "Emslie, Clare"

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    The tax deductibility of interest on money borrowed to pay penalties imposed by the Competition Tribunal in terms of the Competition Act, 89 of 1998
    (2009) Emslie, Clare; Davis, Dennis; Gutuza, Tracy
    Section 59(1) of the Competition Act, 89 of 1998 authorises the Competition Tribunal to impose administrative penalties on firms who have committed prohibited forms of anti-competitive conduct, for example a penalty of R45 million was imposed on South African Airways (Pty) Ltd for abuse of dominance and a penalty of R98 784 869.90 was imposed on Tiger Consumer Brands (Pty) Ltd for price fixing. This paper will consider whether the interest expenditure incurred by a company, which raises a loan in order to pay such a penalty, would be deductible in terms of the general case law on the deductibility of interest or in terms of section 24J(2) of the Income Tax Act, 58 of 1962 ('the Act')