Page 220 - Juta's Indirect Tax

s 6
TRANSFER DUTY ACT 40 OF 1949 s 9
(b)
(c)
per cent of the consideration payable in respect of the property;
[Para. (a) substituted by s. 8 (1) of Act 30 of 1998.]
if property has been acquired by the exercise of an option to purchase or a right of pre-emption, any consideration paid or payable by the person who has acquired the property to any person in respect of the said option or right of pre-emption;
any consideration which the person who has acquired property has paid or agreed to pay to any person whatsoever in respect of or in connection with the acquisition of the property, over and above the consideration payable to the person from whom the property was acquired, other than any rent payable under a lease or sub-lease by the cessionary thereof.
of such goods, services, rights or privileges at the date of the transaction or, where the market value of such goods, services, rights or privileges as at the date of the transaction is not ascertainable, a value which the Commissioner considers fair in the circumstances;
(c) where the consideration is in the form of shares in or other securities of a company, whether already registered or still to be registered, or is in the form of rights to acquire such shares or securities, the value of such shares or securities or rights thereto, which value shall—
(i) in the case of shares or securities which are quoted on any recognized stock exchange on the date of the transaction, be their middle market price on that date; or
(ii) in the case of other shares or securities or rights thereto, be a value which the Commissioner considers fair in the circumstances;
(d) where the consideration is in the form of a member’s interest in a close corporation, whether already registered or still to be registered, such value which the Commissioner considers fair in the circumstances.
[Para. (d) added by s. 2 (1) of Act 81 of 1985.]
9 Exemptions from duty
(1) No duty shall be payable in respect of the acquisition of property by—
(a) the Government and a provincial administration;
[Para. (a) amended by s. 3 (1) (a) of Act 77 of 1964, substituted by s. 7 (1) (a) of Act 103 of 1969 and by s. 4 (1) (a) of Act 87 of 1988 and amended by s. 36 (6) of Act 9 of 1989.]
(b) any ‘municipality’ as de ned in section 1 of the Income Tax Act, 1962 (Act 58 of 1962);
[Para. (b) substituted by s. 3 of Act 70 of 1963, by s. 1 (a) of Act 81 of 1965, by s. 7 (1) (b) of Act 103 of 1969 and by s. 2 (1) (a) of Act 95 of 1978, amended by s. 3 (1) of Act 81 of 1985 and substituted by s. 5 (1) (a) of Act 97 of 1993 and by s. 1 (a) of Act 20 of 2006.]
(bA). . .
[Para. (bA) inserted by s. 2 of Act 89 of 1972 and deleted
by s. 4 of Act 126 of 1998 and by s. 3 (1) (a) of Act 30 of 2000.]
(bB)any ‘water services provider’ as de ned in section 1 of the Income Tax Act, 1962 (Act 58 of 1962);
[Para. (bB) inserted by s. 3 (1) (a) of Act 66 of 1973 and substituted by s. 2 of Act 99 of 1981, by s. 4 (1) (a) of Act 136 of 1992 and by s. 1 (b) of Act 20 of 2006.]
(bC). . .
[Para. (bC) inserted by s. 3 (1) (b) of Act 66 of 1973,
substituted by s. 77 of Act 54 of 1976 and repealed by s. 6 (2) of Act 120 of 1992.]
(c) (i) a public bene t organisation contemplated in paragraph (a) of the de nition of ‘public bene t organisation’ in section 30 (1) of the Income Tax Act, 1962 (Act 58 of 1962), that has been approved by the Commissioner in terms of section 30 (3) of that Act; or
[Sub-para. (i) substituted by s. 1 (c) of Act 20 of 2006.] (ii) any institution, board or body, which is exempt from tax in terms of section 10 (1) (cA) (i) of that Act, which has as its sole or principal object the carrying on of any public bene t activity
contemplated in section 30 of that Act,
in respect of property acquired by such public bene t organisation, institution, board or body, the whole, or substantially the whole, of which will be used for the purposes of one or more public bene t activity carried on by such public bene t organisation, institution,
(2) Where the whole or any part of any commission, fees or consideration referred to in subsection (1) is payable by way of rent, royalty, share of pro ts or any other periodical payment, or otherwise than in cash, the value thereof shall, for the purpose of the payment of duty, be determined mutatis mutandis in accordance with the provisions of section eight: Provided that the value of any such consideration referred to in paragraph (b) of subsection (1) shall be so determined as at the date upon which the option or right of pre-emption was acquired by the person who exercised the option or right of pre- emption.
7 Certain payments excluded from the consideration payable in respect of property There shall for the purpose of the payment of duty be
excluded from the consideration payable in respect of the acquisition of any property—
(a) transfer duty or any other duty or tax payable in
respect of the acquisition of the property; and
(b) the costs or fees payable in connection with the
registration of the acquisition of the property.
8 Valuation of consideration payable by way
of rent, royalty, share of pro ts or any other periodical payment, or otherwise than in cash Where the whole or any part of the consideration in
respect of the acquisition of any property is payable by way of rent, royalty, share of pro ts or any other periodical payment, or otherwise than in cash, the value of the consideration so payable shall, for the purpose of the payment of the duty, be—
(a) where the consideration is in the form of rent, royalty, share of pro ts, or any other periodical payment—
(i) if the actual amounts of the periodical payments are xed, the aggregate of the said amounts payable over the period (including renewal periods) for which the property has been acquired by the person liable to pay the duty or, where the property acquired is a lease or sub-lease and the said aggregate amount exceeds the fair value as determined by the Commissioner mutatis mutandis in accordance with the provisions of subsection (7) of section ve of the property which is the subject of the lease or sub-lease, such fair value;
(ii) if the actual amounts of the periodical payments are not xed or if the property has been acquired for an inde nite or unlimited period or for the natural life of any person, a value which the Commissioner considers fair in the circumstances;
(b) where the consideration is in the form of goods, services, rights or privileges, the current market value
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Juta’s IndIrect tax 2016