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foreign remember tax will always follow the legal principle the only time tax will not follow the legal form of a transaction is if one theres a specific anti-avoidance provision which tells you in these criteria we will do X such as for example section 7c or if we can prove that the substance is actually a sham in other words that the legal nature of the transaction doesnt actually reflect what was intended to be the true form of the transaction so from that point of view is with a loan account the only time size will SARS can actually ignore something as being a loan account is if they can show that it actually doesnt meet the common law criteria of a loan agreement and was intended to be something else which is why saws cannot compel you to ever charge interest they can simply Levy tax consequences via an anti-avoidance provision if your loan is interest-free so the fact in order for something to be a loan agreement there must be an actual obligation to repay an amount thats co
