Page 1145 - SAIT Compendium 2016 Volume2

EXPLANATORY MEMORANDUM ON THE TAXATION LAWS AMENDMENT BILL, 2015
Sub-clause (zD): De nition of ‘retirement annuity fund’ - See notes on WITHDRAWAL FROM RETIREMENT FUNDS BY NON RESIDENTS
Sub-clause (zE): Amendment to the de nition of ‘spouse’ removes reference to the Commissioner’s discretion.
CLAUSE 4
Income Tax: Amendment to section 6
Sub-clause (a): Amendment to subsection (1). Currently, the opening words of section 6(1) read as follows: ‘There
shall be deducted from normal tax’. The opening words of section 6(1) referred to above create confusion as tax payable should already be the nal amount payable. It is proposed that the wording of section 6(1) should be amended to correct the anomaly.
Sub-clause (b): This amendment proposes to delete obsolete provision relating to Standard Income Tax on Employees.
CLAUSE 5
Income Tax: Amendment to section 6B
Amendment corrects alignment in the Afrikaans text.
CLAUSE 6
Income Tax: Amendment to section 6quat
See notes on WITHDRAWAL OF SPECIAL FOREIGN TAX CREDITS FOR SERVICE FEES SOURCED IN
SOUTH AFRICA
CLAUSE 7
Income Tax: Amendment to section 6quin
See notes on WITHDRAWAL OF SPECIAL FOREIGN TAX CREDITS FOR SERVICE FEES SOURCED IN
SOUTH AFRICA
CLAUSE 8
Income Tax: Amendment to section 8
Amendments remove reference to the Commissioner’s discretion.
CLAUSE 9
Income Tax: Amendment to section 8F
Sub-clause (a): This amendment proposes to correct the current legislation to correctly re ect the original policy
intent by deleting reference to ‘from the end of the year of assessment’ in paragraph (c) of the de nition of ‘hybrid debt instrument’.
Sub-clause (b): De nition of ‘interest’ - The amendment updates reference to the de nition of interest in section 8F and makes reference to section 24J(1) instead of section 24J.
CLAUSE 10
Income Tax: Amendment to section 8FA
De nition of ‘interest’ – Amendment updates reference to the de nition of interest in S8FA and makes reference to
section 24J(1) instead of section 24J.
CLAUSE 11
Income Tax: Amendment to section 9
De nition of ‘interest’- The amendment removes reference to the following words: ‘or deemed interest as contemplated
in section 8E(2)’ and clari es that it is interest as contemplated in section 24J(1).
CLAUSE 12
Income Tax: Amendment to section 9C
Sub-clause (a): Insertion of the de nition of ‘disposal’: See notes on ADDRESSING THE PROBLEM OF
RETURN OF CAPITAL AFTER A TAXPAYER HAS HELD A SHARE FOR THREE YEARS
Sub-clause (b): Amendments to the de nition of ‘equity share’ - See notes on ADDRESSING THE PROBLEM OF
RETURN OF CAPITAL AFTER A TAXPAYER HAS HELD A SHARE FOR THREE YEARS
Sub-clause (c): Deletion of the de nition of ‘qualifying share’ - See notes on ADDRESSING THE PROBLEM OF
RETURN OF CAPITAL AFTER A TAXPAYER HAS HELD A SHARE FOR THREE YEARS
Sub-clause (d): See notes on ADDRESSING THE PROBLEM OF RETURN OF CAPITAL AFTER A
TAXPAYER HAS HELD A SHARE FOR THREE YEARS
Sub-clause (e): See notes on ADDRESSING THE PROBLEM OF RETURN OF CAPITAL AFTER A
TAXPAYER HAS HELD A SHARE FOR THREE YEARS
Sub-clause (f): See notes on ADDRESSING THE PROBLEM OF RETURN OF CAPITAL AFTER A TAXPAYER
HAS HELD A SHARE FOR THREE YEARS
Sub-clause (g): See notes on REFINEMENTS TO SECURITY LENDING ARRANGEMENTS
Sub-clause (h): See notes on SECURITIES TRANSFER TAX AND CAPITAL GAINS TAX IMPLICATIONS
ON COLLATERAL ARRANGEMENTS
Sub-clause (i): See notes on ADDRESSING THE PROBLEM OF RETURN OF CAPITAL AFTER A TAXPAYER
HAS HELD A SHARE FOR THREE YEARS
Sub-clause (j): Amendment replaces the word ‘identical’ with the following words ‘of the same class’ in order to provide clarity and be in line with policy intent.
Sub-clause (k): See notes on ADDRESSING THE PROBLEM OF RETURN OF CAPITAL AFTER A TAXPAYER HAS HELD A SHARE FOR THREE YEARS
SAIT CompendIum oF TAx LegISLATIon VoLume 2 1137