Interest: to charge or not to charge?

Overview

Interest expenses and interest income are line items for almost all taxpayers. It is however also a section that creates serious confusion. When are we required to charge interest? Can SARS force us into it? What is the difference between deemed and actual interest and how does this impact taxable income?
 Join Carmen Westermeyer in this session that will unpack the following key questions:

• What are the common law requirements and rules with respect to debt and charging interest?
• Can charging/not charging interest give rise to donations tax?
• What is s24J and how do we calculate interest for income tax purposes?
• How can SARS penalize us for charging interest?
  • o   Section 8F and 8FA
  • o   Disallowance of interest deductions
• How can SARS penalize us for not charging interest?
  • The Brummeria principle
  • Section 7C
  • Section 64E(4)
• What transfer pricing principles should be considered?

Delegates will have an understanding of and exposure to the following:

• Understanding the legal requirements with respect to interest
• Understanding how to calculate the interest amount per s24J
• Understanding the anti-avoidance provisions in the Income Tax Act tie in

Presenter

Carmen Westermeyer

BCom(Honours Accounting) [UND] CA(SA)
 
Carmen Westermeyer graduated in 2001 from the University of Natal, Durban (now UKZN), with a BCom Honours degree in Accounting and completed her articles with PwC in 2004. She has been a member of SAICA since then.

Carmen stayed with PwC for a year as Assistant Manager, venturing into the world of commerce in 2006. In 2008, she was appointed as a lecturer at UKZN and coordinated the Taxation 300 course until December 2010. From 1 January 2010, Carmen took over the role of Academic Leader for the Taxation Department, as well as the coordination of the Postgraduate Taxation Programme. During her time as Academic Leader she had numerous opportunities to liase with SAICA on issues relating to the ITC, as well as being a member of the Tax Committee.

In December 2012 she started running ad hoc training courses for members of the profession. From December 2013, she moved into commercial training and consulting on a full-time basis. She has been involved in various training activities, such as the SAICA SMP training in 2014 and the FASSET Budget and Tax Update in 2015 and 2016.

CPD

This event and successful completion of the online assessment will secure 2 hours verifiable output Tax CPD points.

Event Pricing

CPD subscribers: 100% Discount for 2020 Tax Technician CPD subscribers.

Other members: R475.00

Company Price: R950.00

Payments & Cancellations

• All payments must be made by EFT or by credit card, at least 3 working days before commencement of an event.

• Kindly note that should payment not been received 2 days after the event, legal action will be taken

• Proof of payment will be requested at registration, if payment at that point in time has not been reflected on SAIT's bank account.

• Only written notice of cancellation will be recognised.

• Cancellation Conditions:

  • If the cancellation occurs more than 4 working days prior to the event no cancellation fee will be charged.

  • If the cancellation occurs less than 4 working days prior to the event a 100% cancellation fee will apply.

• Delegates who book and fail to attend will be liable for the full event fee.

• SAIT's liability in the case of an event being cancelled will be limited to a refund or credit of the event fee.

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