Tax on Retirement Funds Act, 1996 (Act No. 38 of 1996)14. Accrual and incurral of interest |
| (1) | The provisions of section 24J of the Income Tax Act shall apply mutatis mutandis for the purposes of determining the income of a fund and where any instrument held by such fund on 1 March 1996 was issued to or transferred to, as the case may be, such fund before that date, such fund may elect that the provisions of such section shall be deemed to have been applicable to such instrument from— |
| (a) | 1 March 1996, and in such instance— |
| (i) | such instrument shall for the purposes of such section be deemed to have been issued on 1 March 1996; and |
| (ii) | the initial amount in relation to such instrument shall for the purposes of such section be deemed to be the market value of such instrument on 1 March 1996; or |
| (b) | the date of issue or transfer of such instrument, as the case may be, to such fund. |
| (2) | For the purposes of subsection (1) any reference in— |
| (a) | section 24J of the Income Tax Act to a year of assessment, shall be construed as a reference to a tax period; and |
| (b) | the definition of "accrual period" in section 24J(1) of the Income Tax Act, to a period of 12 months, shall be construed as a reference to one month or such longer period as the Commissioner, having regard to the circumstances of the case, may approve. |