Page 192 - Juta's Indirect Tax

s 8
(a)
SECURITIES TRANSFER TAX ACT 25 OF 2007 s 8
if the security is transferred to a person—
(i) in terms of an asset-for-share transaction referred
to in section 42 of the Income Tax Act;
(iA)in terms of a substitutive share-for-share transaction referred to in section 43 of the Income Tax Act or in terms of paragraph 11 (2) (l) of the Eighth Schedule to the Income Tax Act; (ii) in terms of an amalgamation transaction referred
to in section 44 of the Income Tax Act;
(e) if that security is transferred to an institution, board or body, which is exempt from income tax in terms of section 10 (1) (cA) (i) of the Income Tax Act, and which has as its sole or principal object the carrying on of any public bene t activity referred to in section 30 of that Act, if the tax thereon would be legally payable and borne by that institution, board or body;
(f) to the extent that that security is a participatory interest in a collective investment scheme regulated in terms of the Collective Investment Schemes Control Act, 2002 (Act 45 of 2002);
(g) if that security is transferred to a bene ciary entitled thereto under a trust created in accordance with a will; (h) if the person to whom that security is transferred is an heir or a legatee who has acquired that security ab intestatio or by way of testamentary succession or as a result of a redistribution of the assets of a deceased
estate in the process of liquidation;
(i) if the person to whom that security is transferred is a
spouse in a marriage in community of property who acquires an undivided half-share in that security by operation of law by virtue of the contraction of such marriage, if that security was acquired by the other spouse prior to the date of that marriage;
(j) if the person to whom that security is transferred is a surviving or divorced spouse who acquires a security from his or her deceased or divorced spouse where that security is transferred to that surviving or divorced spouse as a result of the death of his or her spouse or dissolution of their marriage or union;
(k) transferred to any sphere of the Government of the Republic or to any sphere of the government of any other country;
(l) transferred to any ‘water services provider’ as de ned in section 1 of the Income Tax Act;
(m) . . .
[Para. (m) deleted by s. 148 (1) (a) of Act 24 of 2011.]
(n) if that security is an unlisted security which in terms of the Transfer Duty Act, 1949 (Act 40 of 1949), constitutes a transaction for the acquisition of property that is subject to transfer duty;
(o) if that security is a share in a share block company as de ned in section 1 of the Share Block Control Act, 1980 (Act 59 of 1980), which confers a right to or an interest in the use of immovable property;
(p) transferred to any traditional council as referred to in the Communal Land Rights Act, 2004 (Act 11 of 2004), on or before a date that may be determined by the Minister by notice in the Gazette;
(q) if the person to whom that security is transferred is a member who acquires that security and allocates it to that member’s bank restricted stock account or that member’s unrestricted and security restricted stock account;
[Para. (q) substituted by s. 148 (1) (b)* of Act 24 of 2011 and by s. 155 (1) (a)† and (b)‡ of Act 22 of 2012.]
[Sub-para. (iA) inserted by s. 183 (1) of Act 31 of 2013 – insertion deemed to have come into operation on 4 July 2013.]
(iii) in terms of an intra-group transaction referred to in section 45 of the Income Tax Act;
(iv) in terms of an unbundling transaction referred to in section 46 of the Income Tax Act;
(v) in terms of a liquidation distribution referred to in section 47 of the Income Tax Act; or
(vi) in terms of any transaction which would have constituted a transaction or distribution referred to—
(A) . . .
[Item (A) substituted by s. 73 of Act 3 of 2008 and by s. 97 (1) of Act 17 of 2009 and deleted by s. 127 (1) of Act 7 of 2010.]
(B) in subparagraph (i) or (ii) regardless of the market value of the asset disposed of in exchange for that security; or
[Item (B) substituted by s. 127 (1) (a) of Act 60 of 2008.] (C) in subparagraphs (i) to (v) regardless of whether or not that person acquired that security as a capital asset or as trading stock, where the public of cer of the relevant company has made a sworn af davit or solemn declaration that the acquisition of that security complies with the
provisions of this paragraph;
(b) if the transfer is from a lender to a borrower, or vice
versa, in terms of a lending arrangement and the person to whom that security has been transferred has certi ed to the member or participant that the change is in terms of that lending arrangement;
[Para. (b) substituted by s. 138 (1) (a) of Taxation Laws Amendment Act, 2015 (‘member or’ inserted before ‘participant’) – date of commencement: 1 January 2016; this substitution applies iro any collateral arrangement entered into on or after that date.]
(c) if the transfer is from a pension fund to another pension fund both of which are registered under the Pension Funds Act, 1956 (Act 24 of 1956), and that change is made in pursuance of a scheme referred to in section 14 (1) of that Act;
(d) if that security is transferred to a public bene t organisation which is exempt from income tax in terms of section 10 (1) (cN) of the Income Tax Act, if the tax thereon would be legally payable and borne by that public bene t organisation;
* Paragraph (b) of s. 148 (1) is deemed to have come into operation on 1 January 2011 and applied in respect of transactions entered into—
(a) on or after that date; and
(b) on or before 31 December 2012.
† Paragraph (a) of s. 155 (1) is deemed to have come into operation on 1 July 2008 and applied in respect of
transactions entered into—
(a) on or after that date; and
(b) on or before 31 December 2012,
in respect of which no securities transfer tax has been paid.
‡ Paragraph (b) of s. 155 (1) came into operation on 1 January 2013 and applies in respect of transactions entered
into on or after that date.
184 Juta’s IndIrect tax 2016