Where a South African exporter sold capital goods on a medium- or long-term credit basis to purchasers in an export country and such credit was insured against all risks (both political and otherwise) with the Credit Guarantee Insurance Corporation, a doubtful debts allowance was granted to the exporter in terms of Section 11(j) of the Income Tax Act, on so much of the amount which was due to him at the end of his financial year in respect of the sales in question as was not covered by the insurance effected.
The practice is withdrawn with effect from 1 November 1995.
Exporters will, in future, be required to furnish the same particulars in respect of export sales, which are regarded as doubtful as are required in respect of all other doubtful debts. The normal requirements of section 11(j) in respect of doubtful debts will, therefore, be applicable in future. The allowance will be granted on the same basis as all other doubtful debts.
Withdrawn by Government Notice 845 of 2004 on the basis that; "Normal requirements of section 11(j) are applicable. This withdrawal does not reinstate the practice withdrawn with effect from 1 November 1995."
|Practice Note||Withdrawn by|
|1||Government Notice 845 of 2004|
|2||Government Notice 845 of 2004|
|3||Government Notice 845 of 2004|
|6||Government Notice 845 of 2004|
|7||Government Notice 845 of 2004|
|9||Interpretation Note 18|
|10||Government Notice 743 of 2001|
|11||Practice Note 14|
|14||Government Notice 845 of 2004|
|21||Government Notice 845 of 2004|
|26||SARS Practice Note 1|
|27||SARS Practice Note 6|
|38||Government Notice 845 of 2004|