Page 1144 - SAIT Compendium 2016 Volume2

EXPLANATORY MEMORANDUM ON THE TAXATION LAWS AMENDMENT BILL, 2015
INCOME TAX ACT
CLAUSE 3
Income Tax: Amendment to section 1
Sub-clause (a): De nition of ‘collateral arrangement’: See notes on SECURITIES TRANSFER TAX AND
CAPITAL GAINS TAX IMPLICATIONS ON COLLATERAL ARRANGEMENTS
Sub-clause (b): Amendment to paragraph (iii) of paragraph (e) of the de nition of ‘company’. This amendment corrects a grammatical error by changing the word ‘listing’ to ‘listings’.
Sub-clause (c): De nition of ‘connected person’ - Amendment excludes speci c reference to collective investment schemes in securities or a portfolio of collective investment scheme in property and a reference will be made only to a portfolio of collective investment scheme.
Sub-clause (d): De nition of ‘connected person’ - Amendment excludes speci c reference to collective investment schemes in securities or a portfolio of collective investment scheme in property and a reference will be made only to a portfolio of collective investment scheme.
Sub-clause (e): De nition of ‘connected person’ - Amendment excludes speci c reference to collective investment schemes in securities or a portfolio of collective investment scheme in property and a reference will be made only to a portfolio of collective investment scheme.
Sub-clause (f): De nition of ‘connected person’ - Amendment excludes speci c reference to collective investment schemes in securities or a portfolio of collective investment scheme in property and a reference will be made only to a portfolio of collective investment scheme.
Sub-clause (g): De nition of ‘foreign partnership’ - See notes on the REVISION OF THE DEFINITION OF FOREIGN PARTNERSHIP
Sub-clause (h):
• De nition of ‘identical security’- See notes on REFINEMENTS TO SECURITIES LENDING ARRANGEMENTS • De nition of ‘identical share’ - See notes on SECURITIES TRANSFER TAX AND CAPITAL GAINS TAX
IMPLICATIONS ON COLLATERAL ARRANGEMENTS
Sub-clause (i): Insertion of the de nition of ‘Insurance Act, 2016’. In order to avoid repetition of the full citation of acts referred to in the Income Tax Act, it is proposed that the Insurance Act, 2016 be de ned.
Sub-clause (j): De nition of ‘maatskappy’ – The proposed amendment in paragraph (f) of the de nition corrects a spelling error in the Afrikaans text.
Sub-clause (k): De nition of ‘pension fund’ – See notes on PHASING IN THE REQUIREMENT TO PURCHASE AN ANNUITY FOR PROVIDENT FUNDS
Sub-clause (l): De nition of ‘pension fund’ – See notes on PHASING IN THE REQUIREMENT TO PURCHASE AN ANNUITY FOR PROVIDENT FUNDS
Sub-clause (m): Amendment to the de nition of ‘pension fund’ removes reference to the Commissioner’s discretion.
Sub-clause (n): De nition of ‘pension fund’ - See notes on CLOSING A LOOPHOLE TO ENSURE CONSISTENT TAX TREATMENT ON ALL RETIREMENT FUNDS AS PART OF RETIREMENT REFORMS
Sub-clause (o): De nition of ‘pension fund’ - PHASING IN THE REQUIREMENT TO PURCHASE AN ANNUITY FOR PROVIDENT FUNDS
Sub-clause (p): De nition of ‘pension fund’ - See notes on PHASING IN THE REQUIREMENT TO PURCHASE AN ANNUITY FOR PROVIDENT FUNDS
Sub-clause (q): De nition of ‘pension preservation fund’ - See notes on PHASING IN THE REQUIREMENT TO PURCHASE AN ANNUITY FOR PROVIDENT FUNDS
Sub-clause (r): De nition of ‘pension preservation fund’ - See notes on PHASING IN THE REQUIREMENT TO PURCHASE AN ANNUITY FOR PROVIDENT FUNDS
Sub-clause (s): De nition of ‘pension preservation fund’ - CLOSING A LOOPHOLE TO ENSURE CONSISTENT TAX TREATMENT ON ALL RETIREMENT FUNDS AS PART OF RETIREMENT REFORMS
Sub-clause (t): De nition of ‘pension preservation fund’ - See notes on PHASING IN THE REQUIREMENT TO PURCHASE AN ANNUITY FOR PROVIDENT FUNDS
Sub-clause (u): De nition of ‘provident fund’ - See notes on PHASING IN THE REQUIREMENT TO PURCHASE AN ANNUITY FOR PROVIDENT FUNDS
Sub-clause (v): De nition of ‘provident fund’ - See notes on PHASING IN THE REQUIREMENT TO PURCHASE AN ANNUITY FOR PROVIDENT FUNDS
Sub-clause (w): De nition of ‘provident preservation fund’ - See notes on PHASING IN THE REQUIREMENT TO PURCHASE AN ANNUITY FOR PROVIDENT FUNDS
Sub-clause (x): De nition of ‘provident preservation fund’ - See notes on PHASING IN THE REQUIREMENT TO PURCHASE AN ANNUITY FOR PROVIDENT FUNDS
Sub-clause (y): De nition of ‘provident preservation fund’ - See notes on PHASING IN THE REQUIREMENT TO PURCHASE AN ANNUITY FOR PROVIDENT FUNDS
Sub-clause (z): De nition of ‘provident preservation fund’ - See notes on PHASING IN THE REQUIREMENT TO PURCHASE AN ANNUITY FOR PROVIDENT FUNDS
Sub-clause (zA): Amendment to the de nition of ‘remuneration proxy’ corrects a circular reference in the calculation of the fringe bene t for residential accommodation.
Sub-clause (zB): De nition of ‘retirement annuity fund’ – See notes on CLOSING A LOOPHOLE TO ENSURE CONSISTENT TAX TREATMENT ON ALL RETIREMENT FUNDS AS PART OF RETIREMENT REFORMS Sub-clause (zC): De nition of ‘retirement annuity fund’ - See notes on PHASING IN THE REQUIREMENT TO
PURCHASE AN ANNUITY FOR PROVIDENT FUNDS
1136 SAIT CompendIum oF TAx LegISLATIon VoLume 2