Page 10 - SAIT_2016

s 27 INCOME TAX ACT 58 OF 1962 s 28
out of the stabilization fund referred to in subsection (2) (h), be included in the gross income of the person who has become entitled thereto and shall be deemed to have accrued to such person on the date of the distribution of the bonus by such co-operative.
(b) For the purposes of this section the amount of any bonus distributed by way of capitalization shares or bonus debentures or securities shall be deemed to be the nominal value of such shares, debentures or securities, as the case may be.
[Sub-s. (8) added by s. 17 (1) of Act 113 of 1977.]
(9) In this section—
‘agricultural co-operative’ means any co-operative agricultural society or company or any farmers’ special co-operative company, as defined in the Co-operative Societies Act, 1939;
‘bonus’ means any amount distributed by any co- operative society or company referred to in this section out of its profits or surplus for any year of assessment or, in the case of the vereniging referred to in paragraph (h) of subsection (2), out of the stabilization fund referred to in that paragraph, whether such amount is distributed in cash or by way of a credit or an award of capitalization shares or bonus debentures or securities, if such amount—
(a) is divided among the persons entitled thereto in such manner that the amount accruing to each such person is determined in accordance with the value of the business transactions between such society or company and such person; and
(b) is distributed during the specified period in relation to such year of assessment or is distributed out of the stabilization fund referred to in subsection (2) (h);
‘improvements’, in relation to any storage building, means any extension, addition or improvements (other than repairs) to a storage building which is or are effected for the purpose of increasing the capacity of the building for storing or packing pastoral, agricultural or other farm products or for carrying on therein any primary process in respect of any such products;
‘primary process’, in relation to any product produced in the course of pastoral, agricultural or other farming operations, meansthefirstprocesstowhichsuchproductissubjectedby an agricultural co-operative in order to render such product marketable or to convert such product into a marketable commodity, and includes any further process carried on by such co-operative which is so connected with the said first process that such first process and such further process or processes may be regarded as one process and to be necessary to convert such product into a marketable commodity;
[Definition of ‘primary process’ substituted by s. 23 (c) of Act 113 of 1993.]
‘storage building’, in relation to any agricultural co- operative, means—
(a) a building which is at any relevant time or during any
relevant period wholly or mainly used by such co- operative for storing or packing pastoral, agricultural or other products produced by such co-operative’s members or for carrying on therein any primary process in respect of such products; or
(b) a structure of a permanent nature which is at any relevant time or during any relevant period wholly or mainly used by such co-operative in connection with the fattening of livestock on behalf of the members of such co-operative:
Provided that for the purposes of this definition the members of a central co-operative agricultural company or central farmers’ special co-operative company or federal co-operative agricultural company or federal farmers’
special co-operative company, as defined in the Co- operative Societies Act, 1939, shall be deemed to include the members of any agricultural co-operative which itself is a member of such company.
[Definition of ‘storage building’ substituted by s. 19 (1) (g) of Act 104 of 1980.]
[Sub-s. (9) added by s. 17 (1) of Act 113 of 1977.]
28 Taxation of short-term insurance business
[Heading substituted by s. 61 (1) (a) of Act 22 of 2012 – date of commencement: 1 January 2013; this substitution applies in respect of years of assessment commencing on or after that date.]
(1) For the purposes of this section—
‘premium’ means a premium as defined in the Short- term Insurance Act;
‘Short-term Insurance Act’ . . .
[Definition of ‘Short-term Insurance Act’ deleted by s. 76 (1) (a) of Act 31 of 2013 – date of commencement: 12 December 2013.]
‘short-term insurance business’ means short-term insurance business as defined in the Short-term Insurance Act.
[NB: The definition of ‘short-term insurance business’ has been substituted by s. 52 (1) (a) of Taxation Laws Amendment Act, 2015, a provision that is to come into operation on the date on which an insurer qualifies as a micro-insurer as defined in the Insurance Act, 2016, in terms of that Act, and is to apply to years of assessment ending on or after that date. See Pendlex below.]
‘short-term insurer’ means a short-term insurer as defined in the Short-term Insurance Act;
[NB: The definition of ‘short-term insurer’ has been substituted by s. 52 (1) (b) of Taxation Laws Amendment Act, 2015, a provision that is to come into operation on the date on which an insurer qualifies as a micro-insurer as defined in the Insurance Act, 2016, in terms of that Act, and is to apply to years of assessment ending on or after that date. See Pendlex below.]
‘short-term policy’ means a short-term policy as defined in the Short-term Insurance Act;
[Definition of ‘short-term policy’ substituted by s. 76 (1) (b) of Act 31 of 2013 – substitution deemed to have come into operation on 1 January 2013 and applies in respect of years of assessment commencing on or after that date.]
[NB: The definition of ‘short-term policy’ has been substituted by s. 52 (1) (c) of Taxation Laws Amendment Act, 2015, a provision that is to come into operation on the date on which an insurer qualifies as a micro-insurer as defined in the Insurance Act, 2016, in terms of that Act, and is to apply to years of assessment ending on or after that date. See Pendlex below.]
Pendlex (to come into operation on the date on which an insurer qualifies as a micro-insurer as defined in the Insurance Act, 2016, in terms of that Act)
‘short-term insurance business’ means short- term insurance business as defined in the Short-term Insurance Act and micro-insurance business as defined in section 1 of the Insurance Act.
SAIT CompendIum oF TAx LegISLATIon VoLume 1 213
Pendlex (to come into operation on the date on which an insurer qualifies as a micro-insurer as defined in the Insurance Act, 2016, in terms of that Act)
‘short-term insurer’ means a short-term insurer as defined in the Short-term Insurance Act and a micro- insurer as defined in section 1 of the Insurance Act;
INCOME TAX ACT – SECTIONS