Page 140 - SAIT Compendium 2016 Volume1

s 12F INCOME TAX ACT 58 OF 1962 s 12H
any earthworks or supporting structures forming part of such aircraft hangar, apron, runway or taxiway and any improvements to such aircraft hangar, apron, runway or taxiway; and
[De nition of ‘airport asset’ substituted by s. 26 (1) (b) of Act 35 of 2007 and by s. 22 (a) of Act 17 of 2009.]
‘designated airport’ means an airport approved by the Minister, in consultation with the Minister of Transport, as a designated airport by notice in the Gazette for purposes of this section; and
‘effective date’ . . .
[De nition of ‘effective date’ deleted by s. 26 (1) (c) of Act
35 of 2007.]
‘port asset’ means any port terminal, breakwater, sand trap, berth, quay wall, bollard, graving dock, slipway, single point mooring, dolos, fairway, surfacing, wharf, seawall, channel, basin, sand bypass, road, bridge, jetty or off-dock container depot, and includes any earthworks or supporting structures forming part of such terminal, breakwater, sand trap, berth, quay wall, bollard, graving dock, slipway, single point mooring, dolos, fairway, surfacing, wharf, seawall, channel, basin, sand bypass, road, bridge, jetty or depot and any improvements thereto. [De nition of ‘port asset’ added by s. 26 (1) (d) of Act 35 of
2007 and substituted by s. 22 (b) of Act 17 of 2009.] (2) In respect of any new and unused airport asset or
port asset which—
(a) is brought into use for the rst time by such taxpayer;
and
(b) is used directly by such taxpayer solely for the
purposes of carrying on the taxpayer’s business as
airport, terminal or transport operator or port authority, there shall be allowed to be deducted an allowance in respect of the cost actually incurred by the taxpayer in respect of the acquisition (including the construction, erection or installation) of such asset to the extent that such asset is used in the production of the taxpayer’s income.
[Sub-s. (2) substituted by s. 26 (1) (e) of Act 35 of 2007 and by s. 22 (c) of Act 17 of 2009.]
(2A) For the purposes of this section where a taxpayer completes improvements as contemplated in section 12N, the expenditure incurred by the taxpayer to complete that improvement shall be deemed to be the cost actually incurred by that taxpayer in respect of the acquisition of a new and unused airport asset or port asset contemplated in subsection (2).
[Sub-s. (2A) inserted by s. 24 (1) of Act 7 of 2010.]
(3) The allowance contemplated in subsection (2) in respect of an asset shall, in respect of any one year of assessment, be ve per cent of the cost incurred in respect of that asset.
[Sub-s. (3) substituted by s. 26 (1) (e) of Act 35 of 2007.] (3A) Where any asset in respect of which any deduction is claimed in terms of this section was during any previous year of assessment used by the taxpayer 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, any deduction which could have been allowed in terms of this section during such year or any subsequent year in which such asset was used by the taxpayer shall for the purposes of this section be deemed to have been allowed during such previous year or years as if the receipts and accruals of such trade had been
included in the income of such taxpayer.
[Sub-s. (3A) inserted by s. 26 (1) (e) of Act 35 of 2007 and substituted by s. 24 of Act 60 of 2008.]
(4) For the purposes of this section the cost to a taxpayer of any asset shall be deemed to be the lesser of the actual cost to the taxpayer or the cost which a person would, if
he had acquired the said asset under a cash transaction concluded at arm’s length on the date on which the transaction for the acquisition of the said asset was in fact concluded, have incurred in respect of the direct cost of acquisition of the asset, including the direct cost of the installation or erection thereof or, where the asset has been acquired to replace an asset which has been damaged or destroyed, such cost less any amount which has been recovered or recouped in respect of the damaged or destroyed asset and has been excluded from the taxpayer’s income in terms of section 8 (4) (e), whether in the current or any previous year of assessment.
(5) No deduction shall be allowed under this section in respect of any asset which has been disposed of by the taxpayer during any previous year of assessment.
[Sub-s. (5) substituted by s. 26 (1) (f) of Act 35 of 2007.] (6) The deductions which may be allowed or deemed to have been allowed in terms of this section and any other provision of this Act in respect of the cost of any asset shall not in the aggregate exceed the amount of such cost.
[Sub-s. (6) substituted by s. 26 (1) (f) of Act 35 of 2007.] [S. 12F inserted by s. 12 of Act 19 of 2001.]
12G . . .
[S. 12G inserted by s. 12 of Act 19 of 2001, amended by s. 29 (1) (a), (b) and (c) of Act 60 of 2001, by s. 22 (1) (a), (b), (c), (d),(f)and(g)ofAct74of2002,bys.27ofAct35of2007,by s. 35 (1) (a) and (b) of Act 24 of 2011, by s. 2 (1) (a) and (b) of Act 25 of 2011 and by s. 271 of Act 28 of 2011 and repealed by s. 26 (1) of Act 22 of 2012 – date of commencement:
1 January 2013; the repeal applies in respect of years of assessment commencing on or after that date.]
12H Additional deduction in respect of learnership agreements
(1) For the purposes of this section—
‘associated institution’, in relation to any single employer, means—
(a) where the employer is a company, any other company
which is associated with the employer company by reason of the fact that both companies are managed or controlled directly or indirectly by substantially the same persons;
(b) where the employer is not a company, any company which is managed or controlled directly or indirectly by the employer or by any partnership of which the employer is a member; or
(c) any fund established solely or mainly for providing bene ts for employees or former employees of the employer or for employees or former employees of the employer and any company which is in terms of paragraph (a) or (b) an associated institution in relation to the employer, but excluding any fund established by a trade union or industrial council and any fund established for postgraduate research otherwise than out of moneys provided by the employer or by any associated institution in relation to the employer;
[De nition of ‘associated institution’ inserted by s. 27 (1) (a) of Act 22 of 2012 – date of commencement: 1 January 2013; this de nition applies in respect of learnership agreements entered into on or after that date.]
‘employer’ means—
(a) where only one employer is party to a registered
learnership agreement, that employer; or
(b) in the case where more than one employer is a party to a registered learnership agreement, the employer which
is identi ed in that agreement as the lead employer; ‘learner’ means a learner as de ned in section 1 of the
Skills Development Act, 1998;
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