Page 125 - SAIT Compendium 2016 Volume1

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INCOME TAX ACT 58 OF 1962 s 11
contributions prematurely is entitled to be reinstated as a full member thereof and the current contributions to the fund have been paid in full:
Provided that—
(aa) no deduction shall be made under
subparagraph (i) (aa) in respect of any amount paid into a retirement annuity fund for the bene t of a taxpayer as a member of such fund where such amount is a lump sum bene t derived by the taxpayer from a pension fund, a pension preservation fund, a provident fund, a provident preservation fund or a retirement annuity fund and that amount has under the provisions of paragraph 6 (1) (a) (i) (aa), (bb), (cc) or (dd) of the Second Schedule quali ed for deduction from any amount to be included in the taxpayer’s gross income;
(bb) the deductions in terms of subparagraph (i) (aa) shall not exceed 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 the deductions and assessed losses admissible against such income under this Act (excluding subparagraph (i) (aa), sections 17A and 19 (3) and paragraph 12 (1) (c) to (i), inclusive, of the First Schedule);
(cc) any current contributions (excluding any amount referred to in item (aa) of this proviso) to any retirement annuity fund or funds which are made by the taxpayer as a member of such fund or funds during a year of assessment and do not qualify for deduction from his or her income for that year under subparagraph (i) (aa) shall be carried forward and, except to the extent that such contributions have been exempted under section 10C or accounted for under paragraph 5 (1) (a) or 6 (1) (b) (i) of the Second Schedule, be deemed for the current contributions made to the fund or funds in question during the next succeeding year of assessment;
[Para. (cc) substituted by s. 22 (1) (c) of Act 22 of 2012 – date of commencement: 1 March 2014 (this date was ‘2013’ but was retrospectively amended, by s. 195 (1) of Act 31 of 2013, to become ‘2014’); this substitution applies iro amounts received or accrued on or after that date.]
(dd) no deduction shall be made under subparagraph (i) (bb) in respect of any contribution relating to any year of assessment which, if such contribution had been made during that year, would not have quali ed for deduction under this paragraph, as applicable in relation to the said year;
(ee)any amount being a portion of a contribution made as contemplated in subparagraph (i) (bb) and which has been disallowed solely by reason of the fact that it exceeds the amount of the deduction allowable in respect of the year of assessment, shall be carried forward and be deemed for the purposes of subparagraph (i) to be a contribution so made in the next succeeding year of assessment;
(nA) so much of any amount, including any voluntary award, received or accrued in respect of services rendered or to be rendered or any amount received or accrued in respect of or by virtue of any employment or the holding of any of ce as was included in the taxable income of that person and is refunded by that person;
[Para. (nA) inserted by s. 18 (1) (g) of Act 60 of 2008.] (nB) so much of any amount contemplated in paragraph (cA) of the de nition of ‘gross income’ received by or accrued to any person as is refunded by that
person;
[Para. (nB) inserted by s. 18 (1) (g) of Act 60 of 2008.] (o) at the election of the taxpayer, an amount by which
the cost to that taxpayer of any depreciable asset— (i) which quali ed for an allowance or deduction in terms of section 11 (e), 11B, 11D, 12B, 12C,
12DA, 12E, 14, 14bis or 37B (2) (a); and [Sub-para. (i) substituted by s. 11 (1) (o) of Act 8 of 2007
and by s. 17 (d) of Act 35 of 2007.]
(ii) the expected useful life of which for tax purposes did not exceed ten years as determined on the
date of original acquisition,
exceeds the sum of the amount received or accrued from the alienation, loss or destruction of that asset and the amount of any allowance or deduction allowed in respect of that asset in that year or any previous year of assessment or which was deemed to have been allowed in terms of section 12B (4B), 12C (4A), 12DA (4) or 37B (4) or taken into account in terms of section 11 (e) (ix), as the case may be: Provided that for the purposes of this paragraph—
(aa) the cost of any plant, machinery, implements,
utensils or articles shall be deemed to be the actual cost plus the amount by which the value of such plant, machinery, implements, utensils or articles has been increased in terms of paragraph (v) of the proviso to paragraph (e);
[Para. (aa) substituted by s. 9 (1) (a) of Act 16 of 2004
and by s. 18 (1) (j) of Taxation Laws Amendment Act, 2015 (‘less the amount by which such value has been reduced in terms of paragraph (iv) of that proviso’ deleted after ‘paragraph (e)’) – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
(bb)the actual cost of any plant, machinery, implement, utensil or article acquired by the taxpayer on or after 15 March 1984 shall be deemed to be the cost of that plant, machinery,
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(ff) the provisions of this paragraph shall apply for the purpose of determining the taxpayer’s total taxable income whether derived from the carrying on of any trade or otherwise;
(gg) where any such contribution was allowed as a deduction to a taxpayer, no deduction in respect of such contribution shall be allowed to such taxpayer’s spouse; and
(ii) for the purposes of subparagraph (i), any contribution contemplated in that subparagraph which has been made by an employer of the taxpayer for the bene t of the taxpayer must, to the extent that the amount has been included in the income of the taxpayer as a taxable bene t in terms of the Seventh Schedule, be deemed to have been made by the taxpayer;
INCOME TAX ACT – SECTIONS