Page 69 - SAIT Compendium 2016 Volume2

General INCOME TAX ACT: REGULATIONS ANd NOTICES
General
9. Transfer
10. Returns
11. Fees in respect of tax free investment
12. Fees in respect of withdrawal
Part V Returns
Part VI Fees
Part VII Composition of tax free investment
13. Requirements in respect of composition of certain tax free investments
14. Derivative instrument in respect of tax free investment
15. Certain transactions not allowed
16. Risk cover not allowed
17. Non-compliance with regulations
18. Short title and commencement
De nitions
Part VIII Transactions not allowed
Part IX Non-Compliance with regulations
Part X Miscellaneous
Part I De nitions
1. In these regulations, unless the context otherwise indicates, any word or expression to which a meaning has been assigned in the Income Tax Act bears the meaning so assigned, and—
‘annual contribution limit’ means the amount contemplated in section 12T(4)(a) of the income Tax Act;
‘collective investment scheme’ means a collective investment scheme as de ned in section 1 of the Collective Investment Schemes Control Act, 2002 (Act 45 of 2002), approved as a collective investment scheme in terms of that Act;
‘derivative instrument’ means a derivative instrument as de ned in section 1 of the Financial Markets Act, 2012 (Act 19 of 2012);
‘fee’ includes a management fee, administration fee or any similar charge;
‘guaranteed return’ means, where at the time of the issue of a nancial instrument or policy with a maturity date, all amounts payable in respect of that nancial instrument or policy are —
(a) speci ed; or
(b) ascertainable from the contract that underlies the nancial instrument or policy with reference to—
(i) a xed rate of return; or
(ii) stated return linked to in ation, over the full term of the nancial instrument or policy;
‘Income Tax Act’ means the Income Tax Act, 1962 (Act 58 of 1962);
‘investor’ means a person contemplated in paragraph (b) of the de nition of ‘tax free investment’ in section 12T(1) of the Income Tax Act;
‘issuer’ means a person or institution listed in regulation 2;
‘lifetime contribution limit’ means the amount as contemplated in section 12T(4)(c) of the Income Tax Act. ‘maturity date’ means the date on which an issuer of a tax free investment is contractually bound to liquidate the
investment without any penalty imposed on the investor;
‘policy’ means a policy as de ned in section 29A(1) of the Income Tax Act; and
‘product provider’ means a person or entity contemplated in paragraph (a) of the de nition of tax free investment in
section 12T(1) of the Income Tax Act.
Part II
Issue of nancial instrument and policy
Issue of nancial instrument and policy
2. A nancial instrument or policy in respect of a tax free investment may only be issued by—
(a) a bank as de ned in section 1 of the Banks Act, 1990 (Act No. 94 of 1990);
(b) a long-term insurer as de ned in section 1 of the Long-term Insurance Act,1998 (Act 52 of 1998);
(c) a manager as de ned in section 1 of the Collective Investment Schemes Control Act, 2002 (Act 45 of 2002), other
than a manager of a collective investment scheme in participation bonds (subject to paragraph (d));
(d) a manager as de ned in section 1 of the Collective Investment Schemes Control Act, 2002 (Act 45 of 2002) of a collective investment scheme in participation bonds that complies with the requirements of the relevant Notice that the registrar is empowered to issue in terms of section 114(4)(b) of the Collective Schemes Control Act, 2002 (Act
45 of 2002) and only at such time as the requirements have been determined by the Registrar;
(e) the government of the Republic of South Africa in the national sphere.
(f) a mutual bank as de ned in section 1 of the Mutual Banks Act, 1993 (Act 124 of 1993); or
(g) a co-operative bank as de ned in section 1 of the Co-operative Banks Act, 2007 (Act 40 of 2007).
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