Page 155 - SAIT Compendium 2016 Volume1
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s 12T INCOME TAX ACT 58 OF 1962 s 13
(3) In determining the aggregate capital gain or aggregate capital loss of a person in respect of any year of assessment, any capital gain or capital loss in respect of the disposal of a tax free investment shall be disregarded.
(4) Contributions in respect of tax free investments shall be—
(a) limited to an amount of R30 000 in aggregate during any year of assessment;
(b) an amount in cash; and
(c) limited to an amount of R500 000 in aggregate.
(5) Any amount contemplated in subsection (2) shall not be taken into account in determining whether a person contributed in excess in respect of the amounts contemplated in subsections (4) (a) and (c).
(6) Any—
(a) transfer of an amount in respect of a tax free
investment of a person to another tax free investment
of that person; or
(b) amount received by or accrued in respect of a tax free
investment,
shall not be taken into account in determining whether that person contributed in excess of the amounts contemplated in subsections (4) (a) and (c) as a contribution in respect of that other tax free investment.
(7) (a) If during any year of assessment any person contributes in excess of the amount of R30 000 in respect of tax free investments, an amount equal to 40 per cent of that excess is deemed to be an amount of normal tax payable by the person contemplated in subsection (1) (b) in respect of that year of assessment.
[Para. (a) substituted by s. 29 (1) (b) of Taxation Laws Amendment Act, 2015 – date of commencement deemed to have been 1 March 2015, the date on which the original s. 12T came into operation.]
(b) If any person contributes in excess of R500 000 in aggregate in respect of tax free investments, an amount equal to 40 per cent of so much of that excess as has not previously been taken into account in terms of this subsection shall be deemed to be an amount of normal tax payable by the person contemplated in subsection (1) (b) in respect of the year of assessment in which the excess is contributed.
[Para. (b) substituted by s. 29 (1) (c) of Taxation Laws Amendment Act, 2015 – date of commencement deemed to have been 1 March 2015, the date on which the original s. 12T came into operation.]
(8) The Minister shall make regulations prescribing the requirements—
(a) to which any nancial instrument or policy as de ned
in section 29A shall conform for the purposes of
constituting a tax free investment;
(b) that must be complied with when a tax free investment
is transferred; and
(c) in respect of disclosure by any person contemplated
in paragraph (a) of the de nition of ‘tax free investment’ in subsection (1) in respect of a tax free investment.
(9) (a) The Financial Services Board established under the Financial Services Board Act (hereafter Financial Services Board) shall be responsible for supervising and enforcing compliance with any regulations made by the Minister in terms of subsection (8).
(b) The supervising and enforcing compliance contemplated in paragraph (a) shall form part of the legislative mandate of the Financial Services Board.
(c) The Financial Services Board, acting through the Registrar, as de ned in section 1 of the Financial Institutions (Protection of Funds) Act, 2001 (Act 28 of 2001), in supervising and enforcing compliance as contemplated in paragraph (a), shall exercise any power afforded to the Registrar as de ned in section 1 of that Act and in any of the Acts contemplated in the de nition of ‘law’ in section 1 of that Act.
[S. 12T inserted by s. 28 (1) of Act 43 of 2014 – date of commencement: 1 March 2015.]
13 Deductions in respect of buildings used in a process of manufacture
(1) Notwithstanding anything to the contrary contained in paragraph (ii) of the proviso to section 11 (e), there shall be allowed to be deducted from the income of the taxpayer an allowance equal to two per cent of the cost (after the deduction of any amount referred to in subsection (3) or (7) or the corresponding provisions of any previous Income Tax Act) to the taxpayer of—
(a) . . .
[Para. (a) deleted by s. 45 (a) of Act 31 of 2013 – date of commencement: 12 December 2013.]
(b) any building the erection of which was commenced by the taxpayer on or after the fteenth day of March, 1961, if such building was wholly or mainly used by the taxpayer during the year of assessment for the purpose of carrying on therein in the course of his trade (other than mining or farming) any process of manufacture, research and development or any other process which is of a similar nature, or such building was let by the taxpayer and was wholly or mainly used by a tenant or subtenant for the purpose of carrying on therein any process as aforesaid in the course of any trade (other than mining or farming); or
[Para. (b) substituted by s. 40 (1) (a) of Act 24 of 2011 (date of commencement: 1 April 2012; this paragraph applies in respect of buildings in which research and development is carried on on or after 1 April 2012 but before 1 April 2022) and by s. 30 of Taxation Laws Amendment Act, 2015 (‘process which in the opinion of the Commissioner
is of a similar nature’ replaced by ‘process which is of a similar nature’) – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
(c) . . .
[Para. (c) deleted by s. 45 (a) of Act 31 of 2013 – date of
commencement: 12 December 2013.]
(d) any building the erection of which was commenced on or after the fteenth day of March, 1961, if such building has been acquired by the taxpayer by
Prelex
Wording of para. (a) in force until its retrospective substitution, wef 1 March 2015, by s. 29 (1) (b) of Taxation Laws Amendment Act, 2015
(a) If during any year of assessment any person contributes in excess of the amount of R30 000 in respect of tax free investments, an amount equal to 40 per cent of that excess is deemed to be an amount of normal tax payable by that person in respect of that year of assessment.
Prelex
Wording of para. (b) in force until its retrospective substitution, wef 1 March 2015, by s. 29 (1) (c) of Taxation Laws Amendment Act, 2015
(b) If any person contributes in excess of R500 000 in aggregate in respect of tax free investments, an amount equal to 40 per cent of so much of that excess as has not previously been taken into account in terms of this subsection shall be deemed to be an amount of normal tax payable in respect of the year of assessment in which the excess is contributed.
SAIT CompendIum oF TAx LegISLATIon VoLume 1 147
INCOME TAX ACT – SECTIONS