Page 58 - SAIT Compendium 2016 Volume2

S. 23K (2) regs INCOME TAX ACT: REGULATIONS ANd NOTICES Furnishing returns SCHEDULE
1 De nitions
In these Regulations, unless the context otherwise indicates, any word or expression to which a meaning has been assigned in the Income Tax Act, 1962 (Act 58 of 1962), bears the meaning so assigned, and—
‘group of companies’ means a group of companies as de ned in section 41 of the Act;
‘interest’ means interest as de ned in section 24J of the Act;
‘reorganisation debt instrument’ means any debt instrument issued or used directly or indirectly—
(a) for the purpose of procuring, enabling, facilitating or funding the acquisition by an acquiring company of any assets in terms of a reorganisation transaction; or
(b) in substitution for any debt instrument issued or used as contemplated in paragraph (a);
‘transferor company’ means—
(a) a transferor company as contemplated in section 45(1)(a); or (b) a liquidating company as contemplated in section 47(1)(a); and
‘the Act’ means the Income Tax Act, 1962 (Act 58 of 1962).
2 Circumstances under which section 23K(2) of the Act does not apply
Section 23K(2) of the Act does not apply in respect of any interest incurred by an acquiring company in terms of a reorganisation debt instrument during any period during which—
(a) the holder of the reorganisation debt instrument and the issuer of the reorganisation debt instrument form part of the
same group of companies;
(b) the funding of the reorganisation debt instrument is not directly or indirectly derived from any person that does not
form part of the same group of companies;
(c) the holder of the reorganisation debt instrument is not an insurer as de ned in section 29A(1) of the Act; and
(d) the holder of the reorganisation debt instrument is not a bank as de ned in section 371(1) of the Act.
3 Reorganisation debt instruments to which section 23K(2) does not apply
Section 23K(2) of the Act does not apply in respect of any interest incurred by an acquiring company in terms of a reorganisation debt instrument to the extent that the reorganisation debt instrument constitutes an assumption by the acquiring company of a debt of the transferor company that—
(a) was not incurred by the transferor company for the purpose of procuring, enabling, facilitating or funding the
acquisition by the acquiring company of an asset in terms of that reorganisation transaction; and (b) was incurred by that transferor company—
(i) more than 18 months before that reorganisation transaction has been entered into; or
(ii) within a period of 18 months before that reorganisation transaction has been entered into, to the extent that the
debt—
(aa) constitutes the re nancing of any debt incurred as contemplated in subparagraph (i); or
(bb) is attributable to and arose in the normal course of a business undertaking disposed of, as a going concern,
to that acquiring company as part of that reorganisation transaction.
4 Short title and commencement
These Regulations are called the Regulations prescribing the circumstances under which section 23K(2) of the Income Tax Act, 1962, does not apply and apply in respect of reorganisation transactions entered into on or after 31 March 2012.
PRAVIN JAMNADAS GORDHAN Minister of Finance
INCOME TAX 2015: NOTICE TO FURNISH RETURNS FOR THE 2015 YEAR OF ASSESSMENT
Promulgated in
GN 510 in GG 38874 of 12 June 2015
1.
2.
50
Notice is hereby given in terms of section 66(1) of the Income Tax Act, 1962 (Act 58 of 1962) (‘the Act’) read together with section 25 of the Tax Administration Act 2011 (Act 28 of 2011), that every person who is personally or in a representative capacity liable to taxation under the Income Tax Act, 1962, or who is required in terms of paragraph 2 to furnish a return, must furnish a return in respect of the 2015 year of assessment within the period prescribed in paragraph 4 below.
The following persons must furnish an income tax return;
(a) every company, trust or other juristic person, which is a resident;
(b) every company, trust or other juristic person, which is not a resident –
(i) which carried on a trade through a permanent establishment in the Republic; (ii) which derived any capital gain from a source in the Republic; or
(iii) which derived service income from a source in the Republic;
(c) every company incorporated, established or formed in the Republic, but which is not a resident as a result of
the application or any agreement entered into with the Government of any other country for the avoidance of
double taxation;
(d) every natural person –
(i) who carried on any trade in the Republic (other than solely in his or her capacity as an employee);
SAIT CompendIum oF TAx LegISLATIon VoLume 2