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Income Tax Act, 1962 (Act 58 of 1962)

Chapter III: General Provisions

Part II: Assessments

Part IIA

80D. Round trip financing

 

 

(1)        Round trip financing includes any avoidance arrangement in which—

(a) funds are transferred between or among the parties (round tripped amounts); and
(b) the transfer of the funds would—
(i) result, directly or indirectly, in a tax benefit but for the provisions of this Part; and
(ii) significantly reduce, offset or eliminate any business risk incurred by any party in connection with the avoidance arrangement.

 

(2)        This section applies to any round tripped amounts without regard to—

(a) whether or not the round tripped amounts can be traced to funds transferred to or received by any party in connection with the avoidance arrangement;
(b) the timing or sequence in which round tripped amounts are transferred or received; or
(c) the means by or manner in which round tripped amounts are transferred or received.

 

(3)        For the purposes of this section, the term ‘funds’ includes any cash, cash equivalents or any right or obligation to receive or pay the same.