Contents
The section covers
Definition
Other claims are outstanding debts not directly specified in Section 15(3) of PAL.
A claim is defined as a creditor's right to consideration from a debtor, typically monetary consideration.
Example
A claim may, e.g., be
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a dividend-paying debt instrument,
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another loan where the interest is proportionate to the revenue or the size of the profit, or
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a cash deposit with a bank.
Rule
The yields from other claims must be included in the basis of taxation under Sections 3, 6 and 7 of PAL. Both interest income and gains and losses on other claims must be included in the basis of taxation.
Gains or losses on other claims are determined according to the inventory principle. See Section 15(3) of PAL. See also section C.2.2, Determining the basis of taxation according to the inventory principle.
Interest income is included under the provisions set out in Section 15(1) of PAL. See section C.2.3.1, Interest income.