Section 19: Expenditure incurred on interest in the production of income

19. Expenditure incurred on interest in the production of income (1) Subject to this section, where in an income year a person has incurred expenditure on interest in respect of capital employed exclusively in the production of gross income specified in section 10 (1) (b), (c) or (d), as the case may be, he shall be allowed, in that income year, a deduction in respect of the interest from the gross income in the production of which the capital was employed. (2) The Director-General may require a person to support his claim for deduction in respect of interest under subsection (1) by a certificate from a qualified auditor certifying that the amount of interest claimed has been incurred on capital employed exclusively in the production of gross income specified in section 10 (1) (b), (c) or (d). (3) The Director-General may refuse to allow a deduction on expenditure incurred as interest where he is satisfied that the interest— (a) is payable to a non-resident who is not chargeable to tax on the amount of the interest; or (b) is not likely to be paid in cash within a reasonable time.