Supreme Court Act, 1959
R 385
Income Tax Act, 1962 (Act No. 58 of 1962)Chapter III : General ProvisionsPart IIA80D. 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. |
