Page 1155 - SAIT Compendium 2016 Volume2

EXPLANATORY MEMORANDUM ON THE TAXATION LAWS AMENDMENT BILL, 2015
CLAUSE 108
Income Tax: Amendment to paragraph 20 of the Eighth Schedule
Sub-clause (a): Amendment to subparagraph (1)(c): The amendment proposes to standardise reference to the Securities
Transfer Tax Act in the Income Tax Act.
Sub-clause (b): Amendment to subparagraph (1)(h)(iii): The amendment proposes to correct incorrect referencing by
replacing (b) with (c) and replaces the word ‘less’ with ‘reduced by’ as a matter of style consistency.
Sub-clause (c): Insertion of new subparagraph (4): See notes on REMOVING POTENTIAL ANOMALIES
ARISING FROM CANCELLATION OF CONTRACTS
CLAUSE 109
Income Tax: Amendment to paragraph 29 of the Eighth Schedule
Amendments to subparagraph (5): Corrects legislation to refer to both date and period.
CLAUSE 110
Income Tax: Amendment to paragraph 31 of the Eighth Schedule Amendments remove reference to Commissioner’s discretion.
CLAUSE 111
Income Tax: Amendment to paragraph 35 of the Eighth Schedule
Sub-clause (a): Amendments in subparagraph (3): The amendment seeks to clarify that a reduction of proceeds in
the case of a disposal occurs when that disposal was made in that same year of assessment and not a previous year of assessment by inserting the words ‘during a year of assessment’.
Sub-clause (b): Amendments in subparagraph (3)(b) and (c): The amendment seeks to clarify that a reduction of proceeds in the case of a disposal occurs when that disposal was made in that same year of assessment and not a previous year of assessment by inserting the words ‘during a year of assessment’ and ‘during that year’.
CLAUSE 112
Income Tax: Amendment to paragraph 40 of the Eighth Schedule
See notes on REMOVING ANOMALIES FOR INCOME AND DISPOSAL TO AND FROM DECEASED
ESTATES
CLAUSE 113
Income Tax: Amendment to paragraph 41 of the Eighth Schedule
See notes on REMOVING ANOMALIES FOR INCOME AND DISPOSAL TO AND FROM DECEASED
ESTATES
CLAUSE 114
Income Tax: Amendment to paragraph 43 of the Eighth Schedule
Sub-clause (a): Amendments in subparagraph (5)(b): Amendment corrects a grammatical error and changes the word
‘that’ to the word ‘the’ and also changes the words ‘to acquire’ to the word ‘acquiring’.
Sub-clause (b): Amendments in subparagraph (6): Amendment seeks to clarify the provisions of the subparagraph by
inserting the words ‘for purpose of the application of subparagraph (1A)’.
CLAUSE 115
Income Tax: Amendment to paragraph 55 of the Eighth Schedule
The amendment proposes to standardise reference to the Pension Funds Act in the Income Tax Act.
CLAUSE 116
Income Tax: Amendment to paragraph 57A of the Eighth Schedule
Currently, paragraph 57A is divided into subparagraph (a) and (b). For better reading of the provisions of the paragraph
it is proposed that subparagraph (a) and (b) should be merged into one paragraph.
CLAUSE 117
Income Tax: Amendment to paragraph 64B of the Eighth Schedule
See notes on RELAXING CAPITAL GAINS TAX RULES APPLICABLE TO CROSS ISSUE OF SHARES
AND INTRODUCING COUNTER MEASURES FOR TAX-FREE CORPORATE MIGRATIONS
CLAUSE 118
Income Tax: Insertion of paragraph 64C of the Eighth Schedule - See notes on CLARIFICATION OF THE INTERACTION BETWEEN TAXATION OF SHARE INCENTIVE TRUSTS, TIME OF DISPOSAL RULES AND ATTRIBUTION OF GAINS TO TRUST BENEFICIARY RULES
CLAUSE 119
Income Tax: Amendment to paragraph 65 of the Eighth Schedule
Sub-clause (a): Amendments in subparagraph (1)(d)(ii): Amendment updates referencing and includes section 9(2)
(j) under this item.
Sub-clause (b): Amendments to the proviso to subparagraph (1)(d): Amendments remove reference to Commissioner’s
discretion.
CLAUSE 120
Income Tax: Amendment to paragraph 66 of the Eighth Schedule
SAIT CompendIum oF TAx LegISLATIon VoLume 2 1147