Page 118 - SAIT Compendium 2016 Volume1

s 11
INCOME TAX ACT 58 OF 1962 s 11
consideration so paid as is equal to the said amount divided by the number of years for which the taxpayer is entitled to the use or occupation, or one twenty- fth of the said amount, whichever is the greater;
[Para. (aa) amended by s. 9 (d) of Act 90 of 1962 and substituted by s. 14 (1) (d) of Act 17 of 2009.]
(bb) if the taxpayer is entitled to such use or occupation for an inde nite period, or if, in the case of any such right of use or occupation granted under an agreement concluded on or after 1 July 1983, the taxpayer or the person by whom such right of use or occupation was granted holds a right or option to extend or renew the original period of such use or occupation, he shall be deemed, for the purposes of this paragraph, to be entitled to such use or occupation for the period of the probable duration of such use or occupation; and
[Para. (bb) substituted by s. 10 (1) (a) of Act 94 of 1983 and by s. 18 (1) (d) of Taxation Laws Amendment Act, 2015 – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
(cc) the allowance under sub-paragraph (iv) shall not exceed for any one year such portion (not being less than one twenty- fth) of the amount of the premium or consideration so paid as may be determined having regard to the period during which the taxpayer will enjoy the right to use such lm, sound recording, advertising matter, patent, design, trade mark, copyright or other property as aforesaid and any other circumstances which are relevant;
[Para. (cc) amended by s. 9 (e) of Act 90 of 1962
and substituted by s. 18 (1) (d) of Taxation Laws Amendment Act, 2015 – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
Prelex
Wording of para. (ix) of the proviso to para. (e) in force until date of promulgation of Taxation Laws Amendment Act, 2015
(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 Commissioner shall take into account the period in use of such asset during such previous year or years in determining the amount by which the value of such machinery, plant, implement, utensil or article has been diminished;
[Para. (e) amended by s. 9 (a) of Act 90 of 1962 and by s. 9 (a) of Act 90 of 1964, substituted by s. 11 (1) (a) of Act 88 of 1965 and amended by s. 8 (1) (b) of Act 90 of 1988, by s. 11 (1) (a) of Act 101 of 1990, by s. 6 (a) of Act 9 of 2005, by s. 18 (a) of Act 31 of 2005, by s. 10 (1) (a) of Act 3 of 2008 and by s. 19 (1) (a) of Act 7 of 2010.]
(f) an allowance in respect of any premium or consideration in the nature of a premium paid by a taxpayer for—
(i) the right of use or occupation of land or buildings used or occupied for the production of income or from which income is derived; or
(ii) the right of use of any plant or machinery used for the production of income or from which income is derived; or
(ii)bisthe right of use of any motion picture lm or any sound recording or advertising matter connected with such lm, if such lm, sound recording or advertising matter is used for the production of income or income is derived therefrom; or
[Sub-para. (ii)bis inserted by s. 9 (b) of Act 90 of 1962.] (iii) the right of use of any patent as de ned in the Patents Act or any design as de ned in the Designs Act or any trade mark as de ned in the Trade Marks Act or any copyright as de ned in the Copyright Act or of any other property which is of a similar nature, if such patent, design, trade mark, copyright or other property is used for the production of income or income is derived
therefrom; or
[Sub-para. (iii) substituted by s. 14 (1) (a) of Act 89 of 1969, by s. 13 (b) of Act 129 of 1991, by s. 20 (a) of Act 53 of 1999 and by s. 27 (1) (c) of Act 31 of 2013 – date of commencement: 12 December 2013.]
(iv) the imparting of or the undertaking to impart any knowledge directly or indirectly connected with the use of such lm, sound recording, advertising matter, patent, design, trade mark, copyright or other property as aforesaid; or
[Sub-para. (iv) amended by s. 9 (c) of Act 90 of 1962.] (v) the right of use of any pipeline, transmission line or cable or railway line contemplated in the de nition of ‘affected asset’ in section
12D:
[Sub-para. (v) added by s. 14 (1) (c) of Act 17 of 2009.] Provided that—
(aa) the allowance under subparagraph (i), (ii), (ii)
bis, (iii) or (v) shall not exceed for any one year such portion of the amount of the premium or
(dd) the provisions of this paragraph shall not apply in relation to any such premium or consideration paid by the taxpayer which does not for the
Prelex
Wording of paras. (bb) and (cc) of the proviso to para. (f) in force until date of promulgation of Taxation Laws Amendment Act, 2015
(bb)if the taxpayer is entitled to such use or occupation for an inde nite period, or if, in the case of any such right of use or occupation granted under an agreement concluded on or after 1 July 1983, the taxpayer or the person by whom such right of use or occupation was granted holds a right or option to extend or renew the original period of such use or occupation, he shall be deemed, for the purposes of this paragraph, to be entitled to such use or occupation for such period as in the opinion of the Commissioner represents the probable duration of such use or occupation; and
(cc) the allowance under sub-paragraph (iv) shall not exceed for any one year such portion (not being less than one twenty- fth) of the amount of the premium or consideration so paid as the Commissioner may allow having regard to the period during which the taxpayer will enjoy the right to use such lm, sound recording, advertising matter, patent, design, trade mark, copyright or other property as aforesaid and any other circumstances which in the opinion of the Commissioner are relevant;
110 SAIT CompendIum oF TAx LegISLATIon VoLume 1