Bad Debts (VAT)

Legal Notice No. 37 on the Guidelines for Allowability of Bad Debts only applies to bad debts in regard to income tax and not VAT “Accordingly, the Guidelines for Allowability of Bad Debts were created and designed pursuant to Section 15 (2) of the Income Tax, had the Respondent intended to have the guidelines apply to the VAT Act, it would have made the indication expressly or generally. The expression made by the Respondent confines and ring fences the application of the guidelines to the relevant tax issues relating to income tax.”