The South African Revenue Service (SARS) has published Interpretation Note 51 (Issue 6), which provides guidance on the interpretation and application of section 11A of the Income Tax Act 58 of 1962, which concerns the deduction of pre-trade expenses and losses.
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Purpose
This Note provides guidance on the deduction of pre-trade expenses (sometimes also called start-up costs) under section 11A.
Background
Expenditure and losses are generally deductible only if incurred after the com…