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s 27 INCOME TAX ACT 58 OF 1962 s 27
[Para. (g) substituted by s. 51 of Taxation Laws Amendment Act, 2015 – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
of that cost in respect of which an allowance has been granted to that co-operative under section 11 (g), whether in the current or any previous year of assessment.
[Sub-s. (4) added by s. 17 (1) of Act 113 of 1977 and substituted by s. 7 (1) of Act 4 of 2008.]
(5) Where any agricultural co-operative (hereinafter referred to as the new co-operative) has before 1April 1977 been constituted by an amalgamation under section 94 of the Co-operative Societies Act, 1939, of two or more other agricultural co-operatives and by reason of such amalgamation the ownership of any building used as a storage building by one of such other co-operatives (hereinafter referred to as the other co-operative) has passed from the other co-operative to the new co-operative—
(a) an allowance may in the appropriate circumstances be granted under subsection (2) (b) to the new co-operative in respect of such building or any improvements (other than repairs) thereto if such allowance would have been granted to the other co- operative if the amalgamation had not been effected;
Prelex
Wording of para. (g) in force until date of promulgation of Taxation Laws Amendment Act, 2015
(g) such allowance in respect of the year of assessment
as the Commissioner may make in respect of losses suffered by such agricultural co-operative in consequence of physical damage to or deterioration of pastoral, agricultural and other farm products held by such agricultural co-operative on behalf of any control board established under the provisions of the Marketing Act, 1968 (Act 59 of 1968): Provided that such allowance shall be included in the income of such agricultural co-operative in the following year of assessment; and
(h)
in the case of the vereniging defined in section 1 of the Wine and Spirit Control Act, 1970 (Act 47 of 1970), an allowance equal to so much of any amount which the said vereniging has, within the specified period in relation to the year of assessment, transferred from its profits for such year to a price stabilization fund for distribution to its members or winegrowers within a period not exceeding five years reckoned from the end of such year of assessment, as does not exceed an amount equal to that portion of the profits derived by such vereniging for that year of assessment in the exercise of its functions relating to the control of, and the stabilization of prices in, the wine industry;
[Para. (h) substituted by s. 28 (c) of Act 129 of 1991.]
. . .
(i)
amended by s. 19 (1) (c) of Act 104 of 1980.]
(5A) Where any agricultural co-operative has on or after 1 April 1977 and before the date of commencement of the Co-operatives Act, 1981, been constituted by an amalgamation under section 94 of the Co-operatives Societies Act, 1939, of two or more other agricultural co-operatives, the said co-operative and such other co- operatives shall, for the purposes of assessments under this Act, be deemed to be and to have been one and the
same agricultural co-operative.
[Sub-s. (5A) inserted by s. 19 (1) (d) of Act 104 of 1980 and substituted by s. 21 (1) (e) of Act 96 of 1981.]
(5B) Where any co-operative has on or after the date of commencement of the Co-operatives Act, 1981, come into being in pursuance of a conversion or amalgamation in terms of Chapter VIII of the Act, such co-operative and any company, co-operative or co-operatives out of which it so came into being shall, for the purposes of assessments under this Act for the year of assessment during which such co-operative came into being and subsequent years of assessment but subject to such conditions as the Commissioner may impose, be deemed to be and to have been one and the same co-operative.
[Sub-s. (5B) inserted by s. 21 (1) (f) of Act 96 of 1981.]
(6) . . .
[Sub-s. (6) added by s. 17 (1) of Act 113 of 1977, amended by s. 11 (c) of Act 101 of 1978, by s. 19 (1) (e) of Act 104 of 1980 and by s. 21 (1) (g) of Act 96 of 1981 and deleted by s. 28 (h) of Act 129 of 1991.]
(7) . . .
[Sub-s. (7) added by s. 17 (1) of Act 113 of 1977, amended by s. 11 (d) of Act 101 of 1978, by s. 19 (1) (f) of Act 104 of 1980 and by s. 21 (1) (h) of Act 96 of 1981 and deleted by s. 28 (h) of Act 129 of 1991.]
(8) (a) The full amount of any bonus distributed by any agricultural co-operative shall, to the extent that such amount qualifies for deduction from the income of such co-operative under subsection (2) (a) or, if it is distributed
[Para. (i) added by s. 15 (1) (c) of Act 96 of 1985, amended by s. 18 (c) of Act 85 of 1987 and deleted by s. 28 (d) of Act 129 of 1991.]
[Sub-s. (2) substituted by s. 17 (1) of Act 113 of 1977.]
(2A) . . .
[Sub-s. (2A) inserted by s. 21 (1) (d) of Act 96 of 1981 and deleted by s. 28 (e) of Act 129 of 1991.]
(3) The aggregate of the allowances under subsection (2) (b) and section 13 (1) in respect of any building or improvements shall not exceed the cost (after the deduction of any amount referred to in subsection (4)) of such building or improvements, as the case may be, less the aggregate of any storage building initial allowance and any allowances made to the agricultural co-operative concerned in respect of such building or improvements, as the case may be, under section 11 (g).
[Sub-s. (3) substituted by s. 17 (1) of Act 113 of 1977 and by s. 15 (1) (d) of Act 96 of 1985.]
(4) If in any year of assessment there falls to be included in an agricultural co-operative’s income in terms of paragraph (a) of section 8 (4) an amount, which has been recovered or recouped, in respect of any allowance made under subsection (2) (b) in respect of any building or improvements, such portion of the amount so recovered or recouped as is set off against the cost of a further building as hereinafter provided shall, notwithstanding the provisions of the said paragraph, at the option of that co- operative and provided it erects within twelve months or such further period as the Commissioner may allow from the date on which the event giving rise to the recovery or recoupment occurred, any other building to which the provisions of subsection (2) (b) apply, not be included in its income for that year of assessment, but shall be set off against so much of the cost to it of that further building erected by it as remains after the deduction of any portion
(b) (c)
[Para. (a) substituted by s. 23 (b) of Act 113 of 1993.] .. .
[Para. (b) deleted by s. 28 (f) of Act 129 of 1991.] where an allowance or deduction may be granted or allowed as contemplated in paragraph (a) or (b), the provisions of subsections (2) (b), (3) and (4) shall be applied as though the other co-operative and the new co- operative had at all relevant times been one co-operative.
[Para. (c) substituted by s. 28 (g) of Act 129 of 1991.] [Sub-s. (5) added by s. 17 (1) of Act 113 of 1977 and
212 SAIT CompendIum oF TAx LegISLATIon VoLume 1