Page 572 - Juta's Indirect Tax

Reportable arrangements TAX ADMINISTRATION ACT: REGULATIONS AND NOTICES Dispute resolution SCHEDULE
1. General
In this notice, unless the context indicates otherwise, any word or expression to which a meaning has been assigned in the Income Tax Act, 1962, or the Tax Administration Act, 2011, has the meaning so assigned.
2. Reportable arrangements
The following arrangements have been identi ed to be reportable arrangements: 2.1 Any arrangement that would have quali ed as—
(a) a ‘hybrid equity instrument’ in terms of section 8E of the Income Tax Act, 1962, if the prescribed period in that section had been 10 years; or
(b) a ‘hybrid debt instrument’ in terms of section 8F of the Income Tax Act, 1962, if the prescribed period in that section had been 10 years, but does not include any instrument listed on an exchange regulated in terms of the Financial Markets Act, 2012 (Act 19 of 2012);
2.2. Any arrangement in terms of which—
(a) a company buys back shares on or after the date of publication of this notice from one or more shareholders for
an aggregate amount exceeding R10 million; and
(b) that company issued or is required to issue any shares within 12 months of entering into that arrangement or of
the date of any buy-back in terms of that arrangement;
2.3. Any arrangement in terms of which—
(a) a person that is a resident makes any contribution or payment on or after the date of publication of this notice to a trust that is not a resident and has or acquires a bene cial interest in that trust; and
(b) the amount of all contributions or payments, whether made before or after the date of publication of this notice, or the value of that interest exceeds or is reasonably expected to exceed R10 million, excluding any contributions or payments made to or bene cial interest acquired in any—
(i) portfolio comprised in any investment scheme contemplated in paragraph (9)(ii) of the de nition of ‘company’ in section 1(1) of the Income Tax Act, 1962; or
(ii) foreign investment entity as de ned in section 1(1) of the Income Tax Act, 1962;
2.4. Any arrangement in terms of which one or more persons acquire the controlling interest in a company on or after the date of publication of this notice, including by means of acquiring shares, voting rights or a combination of both, that— (a) (i) has carried forward or reasonably expects to carry forward a balance of assessed loss exceeding R50 million from the year of assessment immediately preceding the year of assessment in which the controlling
interest is acquired; or
(ii) has or reasonably expects to have an assessed loss exceeding R50 million in respect of the year of
assessment during which the controIIing interest is acquired. or
(b) directly or indirectly holds a controlling interest in a company referred to In paragraph (a); and
2.5. Any arrangement between a person that is a resident and a person that quali es as an insurer in terms of any law of any country other than the Republic (hereinafter referred to as the foreign insurer) in terms of which—
(a) an aggregate amount that exceeds or is reasonably expected to exceed R5 million has been paid or becomes
payable by the resident to the foreign insurer; and
(b) any amount payable on or after the date of publication of this notice, in cash or otherwise, to any bene ciary in
terms of that arrangement is to be determined mainly by reference to the value of particular assets or categories of assets that are held by or on behalf of the foreign insurer or by another person for purposes of that arrangement.
3. Excluded arrangements under section 36(4) of the Tax Administration Act, 2011
Any arrangement referred to in section 35(1) of the Tax Administration Act, 2011, is an excluded arrangement if the aggregate tax bene t which is or may be derived from that arrangement by all participants to that arrangement does not exceed R5 million.
NOTICE OF ADDRESSES AT WHICH A DOCUMENT, NOTICE OR REQUEST IS TO BE DELIVERED OR MADE FOR PURPOSES OF RULE 2(c)(ii) AND RULE 3(1) READ TOGETHER WITH RULE 2(c)(iii) OF THE RULES PROMULGATED IN TERMS OF SECTION 103 OF THE TAX ADMINISTRATION ACT, 2011 (ACT 28 OF 2011)
Promulgated under
GN 295 in GG 38666 of 31 March 2015
I, Thomas Swabihi Moyane, Commissioner for the South African Revenue Service, hereby specify, in the Schedule
hereto, the addresses at which a document or notice must be delivered or a request must be made for purposes of rule 2(c)(ii) and rule 3(1) read together with rule 2(c)(iii) of the rules promulgated in terms of section 103 of the Tax Administration Act, 2011.
(Signed)
T S MOYANE
COMMISSIONER FOR THE SOUTH AFRICAN REVENUE SERVICE
564 Juta’s IndIrect tax 2016