Page 134 - SAIT Compendium 2016 Volume1

s 12B
INCOME TAX ACT 58 OF 1962 s 12C
(bA) machinery or plant owned by the taxpayer or acquired by the taxpayer as purchaser 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 and which was or is made available for use by the taxpayer in terms of a contract to another person for no consideration and was or is brought into use for the rst time by that other person for the purposes of that other person’s trade (other than mining or farming) and is used by that other person solely for the bene t of that taxpayer for the purposes of the performance of that other person’s obligations under that contract in a process of manufacture under the Automotive Production and Development Programme administered by the Department of Trade and Industry or Automotive Incentive Scheme administered by that Department;
[Para. (bA) inserted by s. 20 (1) (b) of Taxation Laws Amendment Act, 2015 – date of commencement:
1 January 2016; the inserted paragraph applies iro years of assessment ending on or after that date.]
(c) machinery or plant (other than machinery or plant in respect of which an allowance has been granted to the taxpayer under paragraph (a)) owned by the taxpayer or acquired by the taxpayer as a purchaser 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 and which was or is brought into use for the rst time by any agricultural co-operative registered or deemed to be incorporated under the Co-operatives Act, 1981 (Act 91 of 1981), or registered under the Co-operatives Act, 2005 (Act 14 of 2005) and is used by it directly for storing or packing pastoral, agricultural or other farm products of its members (including any person who is a member of another agricultural co-operative which is itself a member of such agricultural co-operative) or for subjecting such products to a primary process as de ned in section 27 (9);
[Para. (c) substituted by s. 20 (b) of Act 31 of 2005, by s. 14 (1) of Act 8 of 2007 and by s. 32 (1) (a) of Act 31 of 2013 – date of commencement: 12 December 2013.]
(d) machinery, implement, utensil or article (other than any machinery, implement, utensil or article in respect of which an allowance has been granted to the taxpayer under paragraph (e)) owned by the taxpayer or acquired by the taxpayer as purchaser 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 and which was or is brought into use for the rst time by the taxpayer for the purposes of the taxpayer’s trade as hotelkeeper and is used by the taxpayer in a hotel, except any vehicle or equipment for of ces or managers’ or servants’ rooms;
[Para. (d) substituted by s. 20 (b) of Act 31 of 2005 and by s. 32 (1) (a) of Act 31 of 2013 – date of commencement: 12 December 2013.]
(e) machinery, implement, utensil or article (other than any machinery, implement, utensil or article in respect of which an allowance has been granted to the taxpayer under paragraph (d)) owned by the taxpayer or acquired by the taxpayer as purchaser 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 and which was or is let by the taxpayer and was or is brought into use for the rst time by the lessee for the purposes of the lessee’s trade as hotelkeeper and
Prelex
Wording of sub-s. (6) in force until date of promulgation of Taxation Laws Amendment Act, 2015
(6) Where a lessor of any asset under a lease contemplated in subsection (4) (a) has within the period contemplated in subparagraph (ii) of that paragraph, reckoned from the commencement of the period for which the asset is let under that lease, disposed of the whole or a portion of that lessor’s interest in the lease or of his or her right to receive rent under the lease, there must be included in that lessor’s income for the year of assessment during which the disposal is made a sum equal to the aggregate of any deductions allowed to that lessor under this section, section 12 (1) or section 27 (2) (d), less such amount as the Commissioner may allow in respect of the expired portion of the lease or any portion of that interest or right which has not been disposed of by the lessor.
[S. 12B inserted by s. 11 of Act 90 of 1988 and amended by s. 19 (a) of Act 31 of 2005.]
12C Deduction in respect of assets used by manufacturers or hotelkeepers and in respect of aircraft and ships, and in respect of assets used for storage and packing of agricultural products
(1) In respect of any—
(a) machinery or plant (other than machinery or plant
in respect of which an allowance has been granted to the taxpayer under paragraph (b)) owned by the taxpayer or acquired by the taxpayer as purchaser 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 and which was or is brought into use for the rst time by the taxpayer for the purposes of the taxpayer’s trade (other than mining or farming) and is used by the taxpayer directly in a process of manufacture carried on by the taxpayer or any other process carried on by the taxpayer which is of a similar nature;
[Para. (a) substituted by s. 11 (1) of Act 19 of 2001, by s. 8 (a) of Act 9 of 2005, by s. 20 (b) of Act 31 of 2005, by s. 32 (1) (a) of Act 31 of 2013 (date of commencement: 12 December 2013) and by s. 20 (1) (a) of Taxation Laws Amendment Act, 2015 (‘in the opinion of the Commissioner’ deleted before ‘is of a similar nature;’) – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
(b) machinery or plant (other than machinery or plant in respect of which an allowance has been granted to the taxpayer under paragraph (a)) owned by the taxpayer or acquired by the taxpayer as purchaser 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 and which was or is let by the taxpayer and was or is brought into use for the rst time by the lessee for the purposes of the lessee’s trade (other than mining or farming) and is used by the lessee directly in a process of manufacture carried on by the lessee or any other process carried on by the lessee which is of a similar nature;
[Para. (b) substituted by s. 20 (b) of Act 31 of 2005, by s. 32 (1) (a) of Act 31 of 2013 (date of commencement: 12 December 2013) and by s. 20 (1) (a) of Taxation Laws Amendment Act, 2015 (‘in the opinion of the Commissioner’ deleted before ‘is of a similar nature;’) – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
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SAIT CompendIum oF TAx LegISLATIon VoLume 1