Page 117 - SAIT Compendium 2016 Volume1

s 11 INCOME TAX ACT 58 OF 1962 s 11
(iA) no allowance may be made in respect of any machinery, plant, implement, utensil or article the ownership of which is retained by the taxpayer as a seller in terms of an agreement contemplated in paragraph (a) of the de nition of ‘instalment credit agreement’ in section 1 of the Value-Added Tax Act;
[Para. (iA) inserted by s. 18 (b) of Act 31 of 2005 and substituted by s. 27 (1) (b) of Act 31 of 2013 – date of commencement: 12 December 2013.]
(ii) in no case shall any allowance be made for the depreciation of buildings or other structures or works of a permanent nature;
(iiA) where any machinery, implement, utensil or article qualifying for an allowance under this paragraph is mounted on or af xed to any concrete or other foundation or supporting structure and—
(aa)the foundation or supporting structure is designed for such machinery, implement, utensil or article and constructed in such manner that it is or should be regarded as being integrated with the machinery, implement, utensil or article; and
(bb) the useful life of the foundation or supporting structure is or will be limited to the useful life of the machinery, implement, utensil or article mounted thereon or af xed thereto,
the said foundation or supporting structure shall for the purposes of this paragraph not be deemed to be a structure or work of a permanent nature but shall for the purposes of this Act be deemed to be a part of the machinery, implement, utensil or article mounted thereon or af xed thereto;
[Para. (iiA) inserted by s. 12 (1) (a) of Act 85 of 1974 and substituted by s. 22 (1) (a) of Act 22 of 2012 – date of commencement: 1 January 2013; the substituted paragraph applies in respect of years of assessment commencing on or after that date.]
(iii) . . .
[Para. (iii) substituted by s. 12 (1) (a) of Act 55 of 1966 and by s. 10 (a) of Act 21 of 1994 and deleted by s. 18 (1) (b) of Taxation Laws Amendment Act, 2015 – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
(iiiA) no allowance shall be made under this paragraph in respect of any machinery, implement, utensil or article of which the cost has been allowed as a deduction from the taxpayer’s income under the provisions of section 24D;
[Para. (iiiA) inserted by s. 9 (1) (b) of Act 96 of 1981.]
(iv) . . .
[Para. (iv) substituted by s. 9 (1) (a) of Act 113 of 1977 and deleted by s. 19 (1) (b) of Act 7 of 2010.]
(v) the value of any machinery, implements, utensils or articles used by the taxpayer for the purposes of his trade shall be increased by the amount of
any expenditure (other than expenditure referred to in paragraph (a)) which is incurred by the taxpayer in moving such machinery, implements, utensils or articles from one location to another;
[Para. (v) substituted by s. 18 (1) (c) of Taxation Laws Amendment Act, 2015 – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
(vi) . . .
[Para. (vi) substituted by s. 12 (1) (b) of Act 55 of 1966, by s. 9 (1) (b) of Act 113 of 1977, by s. 11 (1) (b) of Act 121 of 1984 and deleted by s. 11 (1) (a) of Act 8 of 2007.]
(vii) where the value of any such machinery, implements, utensils and articles acquired by the taxpayer on or after 15 March 1984 is for the purposes of this paragraph to be determined having regard to the cost of such machinery, implements, utensils and articles, such cost shall be deemed to be the cost which a person would, if he had acquired such machinery, implements, utensils and articles under a cash transaction concluded at arm’s length on the date on which the transaction for the acquisition of such machinery, implements, utensils and articles was in fact concluded, have incurred in respect of the direct cost of the acquisition of such machinery, implements, utensils and articles, including the direct cost of the installation or erection thereof; and
[Para. (vii) added by s. 11 (1) (c) of Act 121 of 1984 and substituted by s. 18 (1) (c) of Taxation Laws Amendment Act, 2015 (‘, in the opinion of the Commissioner,’ deleted (before ‘ a person would’)) – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
(viii) . . .
[Para. (viii) added by s. 9 (1) (a) of Act 113 of 1993, substituted by s. 5 (1) (a) of Act 140 of 1993, by s. 6 (b) of Act 9 of 2005 and by s. 11 (1) (b) of Act 8 of 2007 and deleted by s. 17 (1) (a) of Act 35 of 2007.]
(ix) where any such machinery, plant, implement, utensil or article was used by the taxpayer during any previous year of assessment or years of assessment for the purposes of any trade carried on by such taxpayer, the receipts and accruals of which were not included in the income of such taxpayer during such year or years the period in use of such asset during such previous year or years shall be taken into account in determining the amount by which the value of such machinery, plant, implement, utensil or article has been diminished;
[Para. (ix) added by s. 15 (c) of Act 59 of 2000 and substituted by s. 18 (1) (c) of Act 60 of 2008 and by s. 18 (1) (c) of Taxation Laws Amendment Act, 2015 – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
Prelex
Wording of para. (iii) of the proviso to para. (e) in force until its deletion wef date of promulgation of Taxation Laws Amendment Act, 2015
(iii) no allowance shall be made under this paragraph in respect of any ship to which the provisions of section 14 (1) (a) or (b) apply or in respect of any aircraft to which the provisions of section 14bis (1) (a), (b) or (c) apply;
SAIT CompendIum oF TAx LegISLATIon VoLume 1
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Prelex
Wording of para. (v) of the proviso to para. (e) in force until date of promulgation of Taxation Laws Amendment Act, 2015
(v) the value of any machinery, implements, utensils or articles used by the taxpayer for the purposes of his trade shall be increased by the amount of any expenditure (other than expenditure referred to in paragraph (a)) which is proved to the satisfaction of the Commissioner to have been incurred by the taxpayer in moving such machinery, implements, utensils or articles from one location to another;
INCOME TAX ACT – SECTIONS