Page 149 - SAIT Compendium 2016 Volume1

s 12K INCOME TAX ACT 58 OF 1962 s 12N
its rst session, held at Montreal from 28 November to 10 December 2005 (FCCC/KP/CMP/2005/8 Add.1);
‘qualifying CDM project’ means a Clean Development Mechanism project—
(a) in respect of which a letter of approval as
contemplated in regulations 3 (1) (a) and 7 (3) of the Regulations has been issued by the Designated National Authority; and
(b) that has been registered as contemplated in paragraph 36 of the Modalities on or before 31 December 2020;
[Para. (b) substituted by s. 37 (1) (a) of Act 31 of 2013 – substitution deemed to have come into operation on
1 January 2013 and applies in respect of disposals made on or after that date.]
‘Regulations’ means the Regulations for the Establishment of a Designated National Authority for the Clean Development Mechanism, 2005 (Government Notice R721 published in Government Gazette 27788 of 22 July 2005), made by the Minister responsible for environmental affairs in terms of section 25 (3) of the National Environmental Management Act, 1998 (Act 107 of 1998).
(2) There must be exempt from normal tax any amount received by or accrued to or in favour of any person in respect of the disposal by that person of any certi ed emission reduction derived by that person in the furtherance of a qualifying CDM project carried on by that person.
[S. 12K inserted by s. 26 (1) of Act 17 of 2009.]
12L Deduction in respect of energy ef ciency savings
(1) For the purpose of determining the taxable income derived by any person from carrying on any trade in respect of any year of assessment ending before 1 January 2020, there must be allowed as a deduction from the income of that person an amount in respect of energy ef ciency savings by that person in respect of that year of assessment determined in accordance with subsection (2), subject to subsection (3).
(2) The amount of the deduction contemplated in subsection (1) must be calculated at 95 cents per kilowatt hour or kilowatt hour equivalent of energy ef ciency savings.
[Sub-s. (2) substituted by s. 38 (1) (a) of Act 31 of 2013 (date of commencement: 1 November 2013) and by s. 24 (1) of Taxation Laws Amendment Act, 2015 (‘45 cents’ replaced by ‘95 cents’) – date of commencement deemed to have been 1 March 2015; the substituted subsection applies iro years of assessment commencing on after that date.]
(3) A person claiming the deduction allowed in terms of subsection (1) during any year of assessment must obtain a certi cate issued by an institution, board or body prescribed by the regulations contemplated in subsection (5) in respect of the energy ef ciency savings for which a deduction is claimed in respect of that year of assessment containing—
[Words preceding para. (a) substituted by s. 38 (1) (b) of Act 31 of 2013 – date of commencement: 1 November 2013.]
(a) the baseline at the beginning of the year of assessment;
(b) the reporting period energy use at the end of the year
of assessment;
(c) the annual energy ef ciency savings expressed in
kilowatt hours or kilowatt hours equivalent for the year of assessment including the full criteria and methodology used to calculate the energy ef ciency savings; and
(d) any other information prescribed by the regulations contemplated in subsection (5).
(4) A deduction must not be allowed in terms of this section if the person claiming the allowance receives any concurrent bene t in respect of energy ef ciency savings.
(5) The Minister of Finance, in consultation with the Minister of Energy and the Minister of Trade and Industry, must make regulations prescribing—
(a) the institution, board or body that must issue the
certi cate contemplated in subsection (3);
(b) the powers and responsibilities of the institution,
board or body contemplated in paragraph (a);
(c) the information that must be contained in the certi cate contemplated in subsection (3) in addition
to the information contemplated in that subsection; (d) those bene ts that constitute concurrent bene ts for
the purpose of subsection (4); and
(e) any limitation of energy sources in respect of which
the allowance may be claimed.
[S. 12L inserted by s. 27 (1) of Act 17 of 2009, amended by s. 27 (1) of Act 7 of 2010 and substituted by s. 29 (1) of Act 22 of 2012.]
[Date of commencement of s. 12L: 1 November 2013.]
12M Deduction of medical lump sum payments
(1) For the purposes of this section—
‘dependant’, in relation to a former employee, means a spouse or any dependant (as de ned in section 1 of the Medical Schemes Act);
[De nition of ‘dependant’ substituted by s. 39 of Act 31 of 2013 – date of commencement: 12 December 2013.]
‘insurer’ means an insurer as de ned in section 29A.
(2) In determining the taxable income derived by any taxpayer in any year of assessment from carrying on any trade, there must be allowed as a deduction from the income of that taxpayer so derived any amount paid by way of a lump sum during the year of assessment by that taxpayer— (a) to any former employee of the taxpayer who has
retired from the taxpayer’s employ on grounds of old age, ill health or in rmity or to any dependant of that former employee; or
(b) under any policy of insurance taken out with an insurer solely in respect of one or more former employees or dependants contemplated in paragraph (a),
but only to the extent that the amount is paid for the purposes of making any contribution, in respect of any former employee or dependant contemplated in paragraph (a), to any medical scheme or fund contemplated in section 6A (2) (a) (i) or (ii): Provided that no deduction may be allowed in terms of this section if the taxpayer making the payment, or a connected person in relation to that taxpayer, retains any further obligation, whether actual or contingent, relating to the mortality risk of any former employee or dependant contemplated in paragraph (a).
[Words following on para. (b) and preceding the proviso substituted by s. 30 (1) of Act 22 of 2012 – date of commencement: 1 March 2014; the substitution applies in respect of contributions made on or after that date.]
[Sub-s. (2) amended by s. 28 (1) of Act 7 of 2010.] [S. 12M inserted by s. 28 (1) of Act 17 of 2009.]
12N Deductions in respect of improvements not owned by taxpayer
(1) If a taxpayer—
(a) holds a right of use or occupation of land or a
building;
SAIT CompendIum oF TAx LegISLATIon VoLume 1
141
INCOME TAX ACT – SECTIONS