Providing you with informed commentary on current developments in the local tax and business arena.
Our monthly analysis and comments on new law and administrative changes assist business executives to identify developments and trends in law and Inland Revenue practice that might impact their business.
In terms of Section 21(2) of the Income Tax Act (the “Act”): “assessed loss means any amount, as established to the satisfaction of the Minister, by which the deductions admissible under sections 17, 18 and 20, but excluding deductions admissible under Sections 17A, 17B, 17C and 17D, exceed the income in respect of which they are so admissible, or, if the context so requires, means an assessed tax loss as determined under Section 29”.
In terms of Section 21 of the Act, a taxpayer who does not carry on a trade during a year of assessment forfeits the right to carry forward the assessed tax loss from the immediately preceding year of assessment. The following two requirements must be met by a taxpayer to carry forward and set-off an assessed tax loss:
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