Income Tax Act, 1962 (Act No. 58 of 1962)
Regulations in terms of section 12T(8) of the Income Tax Act, 1962, on the requirements for Tax Free Investment
Part VIII : Transactions not allowed
16A. Tax free investment with underlying performance fees not allowed
A product provider may not offer a financial instrument or policy as a tax free investment if any fee expressed as a percentage of the value of an investment is directly or indirectly commensurate with or linked to an amount received or accrued from an amount invested by the product provider with a person other than that product provider.
[Regulation 16A inserted by regulation 10 of Notice No. R. 309 of 2017]