Page 72 - SAIT Compendium 2016 Volume2

General INCOME TAX ACT: REGULATIONS ANd NOTICES General
(b) not less than 80 per cent of any shares must be listed on a recognised exchange as de ned in paragraph 1 of the Eighth Schedule to the Income Tax Act.
(2) Where the value of a tax free investment is determined with reference to any index of listed shares, the value of shares issued by any company may not exceed an amount of 120 per cent of that company’s weighting in that index, subject to a maximum of 35 per cent of the market value of the tax free investment.
(3) Where any part of the value of a tax free investment is determined directly or indirectly with reference to any commodity, not more than 10 per cent of the value of that tax free investment may be derived from that commodity.
(4) Where any part of the value of a tax free investment is determined directly or indirectly with reference to any
nancial instrument issued by—
(i) any public entity that is listed in Schedule 2 or 3 to the Public Finance Management Act, 1999 (Act 1 of 1999);
(ii) a municipality as de ned in section 1 of the Local Government Municipal Finance Management Act, 2003 (Act 56 of 2003); or
(iii) any foreign government which has been assigned a foreign currency sovereign rating lower than that of the Republic of South Africa, not more than 30 per cent of the value of that tax free investment may be derived from any one of those nancial instruments.
(5) Where any part of the value of a tax free investment is determined directly or indirectly with reference to any nancial instrument issued by any company and that nancial instrument is not a share not more than 10 per cent of the value of that tax free investment may be derived from those nancial instruments
(6) This regulation does not apply in respect of any nancial instrument in respect of a collective investment scheme.
Derivative instrument in respect of a tax free investment
14. A derivative instrument may be utilised as an asset underlying a tax free investment only to the extent that the derivative is utilised for the purposes of reducing the risk of loss or reducing cost (without any increase in risk of loss) in respect of the tax free investment.
Part VIII Transactions not allowed
Certain transactions not allowed
15. A tax free investment may not be utilised as an account—
(a) against which debit orders or stop-orders may be debited;
(b) from which payments or withdrawals may be made from any automatic teller machine or any similar device
that dispenses cash to an account holder;
(c) from which payments may be made with a debit card or credit card.
Risk cover not allowed
16. A policy in respect of which a tax free savings investment is comprised may not provide for any cover against the occurrence of an unforeseen event, including disability, illness or death.
Part IX Non-compliance with regulations
Non-compliance with regulations
17. Any nancial instrument or policy that does not comply with these regulations is not a tax free investment for the purposes of section 12T of the Income Tax Act.
Part X Miscellaneous
Short title and commencement
18. These regulations are called the Regulations in terms of section 121(8) of the Income Tax Act, 1962, on the requirements for tax free investments and come into operation on 1 March 2015.
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. 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.
2. The following persons must furnish an income tax return;
(a) (b)
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every company, trust or other juristic person, which is a resident; 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;
SAIT CompendIum oF TAx LegISLATIon VoLume 2