Page 124 - SAIT Compendium 2016 Volume1

s 11 INCOME TAX ACT 58 OF 1962 s 11
the taxpayer or (where such former employee or former partner is deceased) was so dependent immediately prior to his death;
[Para. (m) substituted by s. 14 (1) (f) of Act 89 of 1969 and by s. 5 (b) of Act 101 of 1978 and amended by s. 9 (1) (f) of Act 96 of 1981, by s. 11 (1) (f) of Act 121 of 1984 and by s. 11 (1) (m) of Act 8 of 2007.]
(n) . . .
[Para. (n) amended by s. 8 (b) of Act 72 of 1963, substituted
by s. 12 (1) (e) of Act 55 of 1966 and by s. 9 (a) of Act 76 of 1968, amended by s. 9 (b) of Act 65 of 1973 and by s. 9 (b) of Act 69 of 1975, substituted by s. 9 (1) (f) of Act 113 of 1977, amended by s. 5 (c) and (d) of Act 101 of 1978, by s. 8 (1) (c) of Act 104 of 1979, by s. 7 (1) (b) and (c) of Act 91 of 1982, and by s. 10 (1) (l), (m), (n), (o) and (p) of Act 94 of 1983, by s. 11 (1) (g) of Act 121 of 1984, by s. 8 (1) (e) of Act 90 of 1988, by s. 8 (1) (b) of Act 70 of 1989, by s. 11 (1) (d) of Act 101 of 1990, by s. 11 (1) of Act 141 of 1992, by s. 9 (1) (h) of Act 113 of 1993, by s. 12 (1) (b) and (c) of Act 21 of 1995, by s. 20 (g) of Act 53 of 1999, by s. 2 (2) (b) of Act 8 of 2007 and by s. 1 (2) (c) and s. 10 (1) (e) and (f) of Act 3 of 2008, substituted by s. 14 (1) (i) of Act 17 of 2009, amended by s. 30 (1) (c) of Act 24 of 2011 and by s. 22 (1) (c) of Act 22 of 2012 and deleted by s. 27 (1) (m) of Act 31 of 2013 – date of commencement: 1 March 2016 (‘1 March 2015’ replaced by ‘1 March 2016’ by s. 122 (1) (b) of Act 43 of 2014); the deletion applies iro amounts contributed on or after that date.]
(iii) for the purposes of paragraph (ii) of this proviso ‘approved remuneration’, in relation to any employee for any year of assessment, means so much of the total remuneration accrued to such employee during such year of assessment in respect of his employment by the employer concerned as the Commissioner considers to be fair and reasonable in relation to the value of the services rendered by such employee during such year of assessment to the employer and having regard to other bene ts, if any, derived by him from his employment by the employer;
(iv) where any contributions are made to any such fund by the members of a partnership in their capacity as employers, the references in paragraph (ii) of this proviso to an employer shall be construed as applying to the partnership as though its members were one person;
(v) a partner in a partnership must for purposes of this paragraph be deemed to be an employee of the partnership;
[Para. (v) substituted by s. 10 (1) (k) of Act 94 of 1983 and by s. 10 (1) (c) of Act 3 of 2008.]
(vi) . . .
[Para. (vi) deleted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
Prelex
Wording of para. (n) in force until 1 March 2016
(n) (i)
(aa) so much of the total current contributions to any retirement annuity fund or funds made during the year of assessment by any taxpayer as a member of such fund or funds as does not in the case of the taxpayer exceed the greatest of—
(A) 15 per cent of an amount equal to the amount remaining after deducting from, or setting off against, the income derived by the taxpayer during the year of assessment (excluding income derived from any retirement-funding employment (being the income or part thereof referred to in the de nition of ‘retirement-funding employment’ in section 1), and any retirement fund lump sum bene t, retirement fund lump sum withdrawal bene t and severance bene t) the deductions or assessed losses admissible against such income under this Act (excluding this paragraph, sections 17A, 18 and 18A and items (c) to (i), inclusive, of paragraph 12 (1) of the First Schedule); or
[Subitem (A) substituted by s. 30 (1) (c) of Act 24 of 2011 – commencement date: 1 March 2011.]
(B) the amount, if any, by which the amount of R3 500 exceeds the amount of any deduction to which the taxpayer is entitled under paragraph (k) (i) in respect of the said year; or
(C) the amount of R1 750;
(bb) so much of the total of any contributions
to any retirement annuity fund or funds made during the year of assessment by any taxpayer as a member of such fund or funds as does not exceed R1 800 in the case of the taxpayer, where such contributions are made under conditions prescribed in the rules of the fund whereby a member who has discontinued his or her
(lA) an amount equal to the market value of any qualifying equity share granted to an employee of that person as contemplated in section 8B, as determined on the date of grant as de ned in that section less any consideration given by that employee for that qualifying equity share, which applies in lieu of any other deduction which may otherwise be allowed to that person or any other person in respect of the granting of that share: Provided that the deduction under this paragraph may not during any year of assessment in aggregate exceed an amount of R10 000 in respect of all qualifying equity shares granted to a single employee and so much as exceeds that amount may be carried forward to the immediately succeeding year of assessment and that excess is deemed to be the market value of qualifying equity shares granted to the relevant employee during that immediately succeeding year for purposes of this paragraph;
[Para. (lA) inserted by s. 16 (1) (f) of Act 32 of 2004 and amended by s. 18 (e) of Act 31 of 2005, by ss. 2 (2) (b) and 11 (1) (l) of Act 8 of 2007, by s. 1 (2) (c) of Act 3 of 2008 and by s. 18 (1) (e) of Act 60 of 2008.]
(m) any amount paid by way of annuity during the year of assessment by any taxpayer—
(i) to a former employee who has retired from the taxpayer’s employ on grounds of old age, ill health or in rmity; or
(ii) to a person who was for a period of at least ve years a partner in an undertaking carried on by the taxpayer and who retired from the partnership in respect of that undertaking on grounds of old age, ill health or in rmity, provided that the amount so paid to such person is reasonable, having regard to the services rendered by such person as a partner in such undertaking prior to his retirement and the pro ts made in such undertaking, and that the said amount does not represent consideration payable to such person in respect of his interest in the partnership; or
[Sub-para. (ii) substituted by s. 9 (1) (f) of Act 113 of 1993.] (iii) to any person who is dependent for his maintenance upon a former employee or a former partner in an undertaking carried on by
116 SAIT CompendIum oF TAx LegISLATIon VoLume 1