Page 122 - SAIT Compendium 2016 Volume1

s 11 INCOME TAX ACT 58 OF 1962 s 11
company or indirectly as a holder of shares in
any other company; or
[Sub-para. (i) substituted by s. 27 (1) (i) of Act 31 of 2013 – date of commencement: 12 December 2013.]
(ii) both the taxpayer and such other person are companies and any third person is interested in more than 50 per cent of any class of shares issued by one of those companies and in more than 50 per cent of any class of shares issued by the other company, whether directly as a holder of shares in the company by which the shares in question were issued or indirectly as a holder of shares in any other company;
[Sub-para. (ii) substituted by s. 27 (1) (i) of Act 31 of 2013 – date of commencement: 12 December 2013.]
[Para. (h) substituted by s. 8 (1) (a) of Act 90 of 1972 and amended by s. 10 (1) (f) of Act 94 of 1983.]
(hA). . .
[Para. (hA) inserted by s. 13 (e) of Act 129 of 1991, substituted by s. 12 (a) of Act 28 of 1997, by s. 27
(1) (e) of Act 45 of 2003 and by s. 11 (1) (b) of Act 20 of 2006, amended by s. 11 (1) (k) of Act 8 of 2007 and deleted by s. 30 (1) (b) of Act 24 of 2011 – commencement date: 1 January 2012. This deletion applies in respect of years of assessment commencing on or after that date.]
(hB) an allowance in respect of expenditure actually incurred and paid in the production of income to discharge all consideration, royalties or compensation otherwise payable to a community or natural person in respect of any existing consideration, contractual royalty, future consideration or compensation that accrued to that community or natural person as contemplated in Item 11 of Schedule 11 to the Mineral and Petroleum Resources Development Act, 2002 (Act 28 of 2002): Provided that for any year of assessment, the allowance shall not exceed an amount equal to the expenditure incurred and paid divided by the number of years for which all consideration, royalties or compensation otherwise payable has been discharged;
(k)
any amount contributed during a year of assessment to any pension fund, provident fund or retirement annuity fund in terms of the rules of that fund by a person that is a member of that fund: Provided that—
(i) the total deduction to be allowed in terms of this paragraph must not in the year of assessment exceed the lesser of—
(aa) R350 000; or
(bb) 27,5 per cent of the higher of the person’s—
(A) remuneration (other than in respect of any retirement fund lump sum bene t, retirement fund lump sum withdrawal bene t and severance bene t) as de ned in paragraph 1 of the Fourth
Schedule; or
(B) taxable income (other than in respect
of any retirement fund lump sum bene t, retirement fund lump sum withdrawal bene t and severance bene t) as determined before allowing any deduction under this paragraph;
(ii) any amount so contributed in any previous year of assessment which has been disallowed solely by reason of the fact that it exceeds the amount of the deduction allowable in respect of that year of assessment is deemed to be an amount so contributed in the current year of assessment, except to the extent that the amount so contributed has been—
(aa) allowed as a deduction against income in any year of assessment;
(bb)accounted for under paragraph 5 (1) (a) or 6 (1) (b) (i) of the Second Schedule; or
(cc) exempted under section 10C;
(iii) any amount so contributed by an employer of the person for the bene t of the person must, to the extent that the amount has been included in the income of the person as a taxable bene t in terms of the Seventh Schedule, be deemed to have been
contributed by the person; and
(iv) for the purposes of this paragraph, a partner in a
partnership must be deemed to be an employee of the partnership and a partnership must be deemed to be the employer of the partners in that partnership;
Pendlex iro para. (j) (to come into operation on a date to be determined by the Minister of Finance in the Gazette)
(j) an allowance as may be made each year in respect
of so much of any debt due to the taxpayer as is considered doubtful according to criteria set out in this regard in a public notice issued by the Commissioner, if that debt would have been allowed as a deduction under any other provisions of this Part had that debt become bad: Provided that such allowance shall be included in the income of the taxpayer in the following year of assessment;
(i)
[Para. (hB) inserted by s. 11 (1) (c) of Act 20 of 2006.] the amount of any debt due to the taxpayer which has during the year of assessment become bad, provided such amount is included in the current year of assessment or was included in previous years of assessment in the taxpayer’s income;
[Para. (i) substituted by s. 14 (1) (d) of Act 89 of 1969, by s. 10 (1) (g) of Act 94 of 1983, by s. 9 (1) (e) of Act 113 of 1993, by s. 22 (1) (b) of Act 22 of 2012 (date of commencement: 1 January 2013) and by s. 17 (1) (a) of Act 43 of 2014 – date of commencement: 20 January 2015.]
(j) an allowance as may be made each year by the Commissioner in respect of so much of any debt due to the taxpayer as the Commissioner considers to be doubtful, if that debt would have been allowed as a deduction under any other provisions of this Part had that debt become bad: Provided that such allowance shall be included in the income of the taxpayer in the following year of assessment;
[Para. (j) substituted by s. 14 (1) (e) of Act 89 of 1969, amended by s. 10 (1) (h) of Act 94 of 1983, by s. 18 (c) of Act 31 of 2005 and by s. 22 (1) (b) of Act 22 of 2012 – date of commencement: 1 January 2013.]
[NB: Para. (j) has been substituted by s. 18 (1) (i) of Taxation Laws Amendment Act, 2015, a provision that is to come into operation on a date to be determined by the Minister of Finance in the Gazette. See Pendlex below.]
[Para. (k) amended by s. 8 (a) of Act 72 of 1963, substituted by s. 12 (1) (d) of Act 55 of 1966, by s. 9 (a) of Act 65 of 1973, by s. 9 (a) of Act 69 of 1975 and by s. 9 (1) (e) of Act 113 of 1977, amended by s. 5 (a) of Act 101 of 1978, by s. 8 (1) (a) of Act 104 of 1979, by s. 9 (1) (c), (d) and (e) of Act 96 of 1981, by s. 10 (1) (i) and (j) of Act 94 of 1983, by s. 11 (1) (e) of Act 121 of 1984, by s. 30 (1) of Act 30 of 1998, by s. 18 (d) of Act 31 of 2005, by s. 2 (2) (b) of Act 8 of 2007, by s. 1 (2) (c) and by s. 10 (1) (b) of Act 3 of 2008, by s. 14 (1) (h) of Act 17 of 2009 and by s. 27 (1) (j) of Act 31 of 2013 and substituted by s. 27 (1) (k) of Act 31
114 SAIT CompendIum oF TAx LegISLATIon VoLume 1