South African Institute for Drug Free Sport Act, 1997
R 385
Income Tax Act, 1962 (Act No. 58 of 1962)Chapter III : General ProvisionsPart IIA80C. Lack of commercial substance |
| (1) | For purposes of this Part, an avoidance arrangement lacks commercial substance if it would result in a significant tax benefit for a party (but for the provisions of this Part) but does not have a significant effect upon either the business risks or net cash flows of that party apart from any effect attributable to the tax benefit that would be obtained but for the provisions of this Part. |
| (2) | For purposes of this Part, characteristics of an avoidance arrangement that are indicative of a lack of commercial substance include but are not limited to— |
| (a) | the legal substance or effect of the avoidance arrangement as a whole is inconsistent with, or differs significantly from, the legal form of its individual steps; or |
| (b) | the inclusion or presence of— |
| (i) | round trip financing as described in section 80D; or |
| (ii) | an accommodating or tax indifferent party as described in section 80E; or |
| (iii) | elements that have the effect of offsetting or cancelling each other. |
