Page 693 - SAIT Compendium 2016 Volume2

INCOME Tax aCT: BINdINg gENERaL RuLINgS
INCOME TAX ACT
Binding Rulings
Binding Private and Class Rulings
Below is a list of Binding Private and Class Rulings issued by SARS. These rulings are available on the SARS website* and are only binding on SARS in respect of the applicant based on speci c information disclosed during the ruling process. Even though other tax payers may not rely on these rulings, it still gives an indication of SARS’ interpretation of the relevant tax legislation and can be useful when considering whether to apply for a similar ruling. For more information, refer to Chapter 7 of the TA Act.
BINDING PRIVATE RULINGS (numerical)
BP RULING NO
DATE
NAME/SUBJECT
SECTION OF INCOME TAX ACT
002
3 September 2007
Method for determination of the interest amount that accrues on the collection of a distressed debtors book
Section 24J
003
3 September 2007
Method for determination of the valuation date value of nancial instruments listed on a recognised exchange to be used for capital gains tax purposes
Section 9D, paras. 1, 26 and 29 of Eighth Schedule
005
3 September 2007
Whether dividend income received by a trust retains its nature in the hands of the bene ciaries on distribution thereof, by the trust, in the same tax year
Section 1 de nition of ‘gross income’, s. 10 (1) (k) (i) and 25B
006
6 March 2008
The application of s. 24C in the context of a repair and maintenance contract
Section 24C
007
6 March 2008
Service fees received by a non-resident labour broker
Section 1 de nition of ‘gross income’, para. 2 of Fourth Schedule, and articles 5 and 7 of the Convention between the Government of the Republic of South Africa, and the Government of the United Kingdom of Great Britain
and Northern Ireland for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income and on capital gains (‘SA/UK DTA’)
008
6 March 2008
Certain variable payments made to a marketing executive and the application of s. 23 (m)
Section 23 (m)
010
6 March 2008
The applicability of the mining tax dispensations contained in the Act to a speci c contract mining agreement
Sections 11 (a), 15, 36 and 37A
011
6 March 2008
Transfer of a pre-1 March 1998 amount from a pension fund as an own contribution to other retirement funds
Paragraphs 1, 2A and 6 of Second Schedule
012
6 March 2008
Determination of gross income of a livestock auctioneer and agent
Section 1 de nition of ‘gross income’
013
6 March 2008
Section 8C and the variation of share options obtained under a share option scheme
Sections 8A and 8C and para. 11 (1) of Eighth Schedule
014
6 March 2008
Employees’ tax in respect of gains, as contemplated in ss. 8A and 8C of the Act, made by retired employees
Paragraph 11A of Fourth Schedule
016
14 July 2008
Loans from a subsidiary company to a holding company
Section 64C (2) (g) and (4) (d)
018
14 July 2008
Deduction of letting commission paid by a property investment company to a property management company
Sections 11 (a) and 23H
* www.sars.gov.za > Legal & Policy > Interpretation & Rulings > Published Binding Rulings
SAIT CompendIum oF TAx LegISLATIon VoLume 2 685