Page 144 - SAIT Compendium 2016 Volume1

s 12I
INCOME TAX ACT 58 OF 1962 s 12I
industrial projects (other than those projects where the approval thereof has been withdrawn under subsection (12)), will in the aggregate exceed R20 billion.
[Sub-s. (9) substituted by s. 37 (1) (d) of Act 24 of 2011 – date
of commencement deemed to have been 5 January 2009.] (10) The Minister of Finance, in consultation with the Minister of Trade and Industry, must make regulations
prescribing—
(a) the factors to be taken into account in determining
whether the industrial project will signi cantly contribute to the Industrial Policy Programme within the Republic;
(b) the factors to be taken into account in determining whether the project will provide general business linkages within the Republic;
(c) the factors to be taken into account in determining whether goods or services will be acquired from small, medium and micro enterprises;
(d) . . .
[Para. (d) deleted by s. 22 (1) (i) of Act 43 of 2014 – date of commencement: 1 January 2015.]
(e) the extent to which the project must provide skills development in the Republic and the factors to be taken into account in determining whether the project provides skills development in the Republic;
(f) the factors to be taken into account in determining the location of the project within an Industrial Development Zone;
[NB: Para. (f) has been substituted by s. 22 (1) (j) of Act 43 of 2014, a provision that will come into operation on the date on which the Special Economic Zones Act 16 of 2014 comes into operation. See Pendlex below.]
(g) the extent to which the project must improve energy ef ciency and the factors to be taken into account in determining the extent to which the project must utilise new technology that results in improved energy ef ciency and cleaner production technology; and
(h) what constitutes an industrial participation project and a concurrent industrial incentive.
(11) Within 12 months after the close of each year of assessment, starting with the year in which approval is granted in terms of subsection (8), a company carrying on an industrial policy project must report until the end of the compliance period to the adjudication committee with respect to the progress of the industrial policy project in terms of the requirements of subsections (7) and (8) within such time, in such form and in such manner as the Minister of Finance may prescribe.
[Sub-s. (11) substituted by s. 6 (1) of Act 21 of 2012 (date of commencement: 1 January 2012; the substitution applies in respect of industrial policy projects approved on or after that date) and by s. 22 (1) (e) of Taxation Laws Amendment Act, 2015 (‘until the end of the compliance period’ retrospectively inserted by the said s. 22 (1) (e) – date of commencement deemed to have been 8 January 2009.]
(12) Where in respect of any company carrying on an industrial policy project—
(a) (i) during any year of assessment—
Prelex
Wording of sub-para. (iv) in force until its retrospective deletion, wef 8 January 2009, by s. 22 (1) (c) of Taxation Laws Amendment Act, 2015
(iv) the project will upgrade an industry within the Republic by—
(aa) providing skills development; and (bb)utilising new technology that results in
improved energy ef ciency;
(b) . . .
[Para. (b) amended by s. 24 (1) (d) of Act 17 of 2009
and deleted by s. 28 (1) (b) of Act 22 of 2012 – date of commencement deemed to have been 1 January 2012; the deletion applies in respect of industrial policy projects approved on or after that date.]
(c) more than 50 per cent of the manufacturing assets to be acquired by the company for the purposes of the project will be brought into use by that company within four years from the date of approval; and
(d) the application for approval of the project by the company is received by the Minister of Trade and Industry not later than 31 December 2017, in such form and containing such information as the Minister of Trade and Industry may prescribe.
[Para. (d) substituted by s. 26 (1) (b) of Act 7 of 2010 and by s. 22 (1) (d) of Taxation Laws Amendment Act, 2015 (‘31 December 2015’ replaced by ‘31 December 2017’) – date of commencement: 1 January 2016.]
(8) The Minister of Trade and Industry must, after taking into account the recommendations of the adjudication committee, approve an industrial project as an industrial policy project, either with or without preferred status, where that Minister is satis ed that the industrial policy project will signi cantly contribute to the Industrial Policy Programme within the Republic having regard to—
(a) the extent to which the project will upgrade an
industry within the Republic by— (i) utilising innovative processes;
(ii) utilising new technology that results in— (aa) improved energy ef ciency; and (bb) cleaner production technology; and
(iii) providing skills development;
(b) the extent to which the project will provide general
business linkages within the Republic;
(c) the extent to which the project will acquire goods or
services from small, medium and micro enterprises;
(d) . . .
[Para. (d) deleted by s. 22 (1) (g) of Act 43 of 2014 – date of commencement: 1 January 2015.]
(e) the extent to which the project will provide skills development in the Republic; and
(f) in the case of a green eld project, the location of the project within an Industrial Development Zone.
[NB: Para. (f) has been substituted by s. 22 (1) (h) of Act
43 of 2014, a provision that will come into operation on the date on which the Special Economic Zones Act 16 of 2014 comes into operation. See Pendlex below.]
(9) Notwithstanding subsection (8), the Minister of Trade and Industry may not approve any industrial project where the potential additional investment and training allowances in respect of that project and all other approved
(aa) any material fact changes; or
136 SAIT CompendIum oF TAx LegISLATIon VoLume 1
Pendlex (to come into operation on the date on which the Special Economic Zones Act 16 of 2014 comes into operation)
(f) the factors to be taken into account in determining
the location of the project within a special economic zone;
Pendlex (to come into operation on the date on which the Special Economic Zones Act 16 of 2014 comes into operation)
(f) in the case of a green eld project, the location of the
project within a special economic zone.