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Am I liable for tax on the repayment of a loan account and how do I reflect this in my tax return?

Posted 1 July 2014 under Tax Questions


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I invested (in the form of a loan account) in a start up private company as a shareholder at the end of 2004. I have been receiving monthly income from the company since mid 2013 as repayment of the original loan account plus annual interest. How do I account for these repayments in my tax return and am I liable for tax on these repayments of the loan account?

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TaxTimTaxTim says:
1 July 2014 at 18:23

You will only be liable on the interest received, not the capital repayment of the loan. You would include this under local interest in the ITR12 Income Tax Return.


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