Page 157 - SAIT Compendium 2016 Volume1

s 13 INCOME TAX ACT 58 OF 1962 s 13bis
period as the Commissioner may allow from the date on which the event giving rise to the recovery or recoupment occurred, any other building to which the provisions of subsection (1) apply, not be included in the taxpayer’s income for that year of assessment, but shall be set off against so much of the cost to the taxpayer of that further building purchased or erected by the taxpayer as remains after the deduction of any portion of such cost in respect of which an allowance has been granted to the taxpayer under section 11 (g), whether in the current or any previous year of assessment.
[Sub-s. (3) amended by s. 12 (c) and (d) of Act 90 of 1962 and substituted by s. 17 (1) (b) of Act 55 of 1966, by s. 13 (1) (a) of Act 88 of 1971 and by s. 3 (1) of Act 4 of 2008.]
(4) . . .
[Sub-s. (4) deleted by s. 12 of Act 113 of 1993.]
(4)bis . . .
[Sub-s. (4)bis inserted by s. 14 (1) (a) of Act 88 of 1965 and
deleted by s. 12 of Act 113 of 1993.]
(5) . . .
[Sub-s. (5) amended by s. 12 of Act 90 of 1962 and by s. 11 of Act 72 of 1963, substituted by s. 14 (1) of Act 88 of 1965, by s. 17 (1) of Act 55 of 1966 and by s. 13 (1) of Act 52 of 1970, amended by s. 12 of Act 90 of 1972, by
s. 13 (1) of Act 65 of 1973, by s. 16 of Act 85 of 1974, by s. 13 (1) of Act 69 of 1975, by s. 7 of Act 101 of 1978, by s. 10 of Act 104 of 1980 and by s. 14 of Act 96 of 1981 and deleted by s. 12 of Act 113 of 1993.]
(6) . . .
[Sub-s. (6) amended by s. 12 of Act 90 of 1962 and by s. 5 of Act 6 of 1963, substituted by s. 12 of Act 90 of 1964, by s. 14 (1) of Act 88 of 1965, by s. 17 (1) of Act 55 of 1966 and by s. 13 (1) of Act 52 of 1970, amended by
s. 12 of Act 90 of 1972, by s. 13 (1) of Act 65 of 1973, by s. 16 of Act 85 of 1974, by s. 13 (1) of Act 69 of 1975, by s. 7 of Act 101 of 1978, by s. 10 of Act 104 of 1980, by s. 14 of Act 96 of 1981 and by s. 10 (1) of Act 96 of 1985 and deleted by s. 12 of Act 113 of 1993.]
(6A) . . .
[Sub-s. (6A) inserted by s. 17 (1) of Act 55 of 1966, substituted by s. 13 (1) of Act 52 of 1970, amended by s. 13 (1) of Act 88 of 1971, by s. 13 (1) of Act 65 of 1973, by s. 16 of Act 85 of 1974, by s. 13 (1) of Act 69 of 1975, by s. 7 of Act 101 of 1978, by s. 10 of Act 104 of 1980 and by s. 14 of Act 96 of 1981 and deleted by s. 12 of Act 113 of 1993.]
(7) . . .
[Sub-s. (7) added by s. 14 (1) of Act 88 of 1965, deleted by s. 17 (1) of Act 55 of 1966, inserted by s. 10 (1) of Act 96 of 1985, amended by s. 12 of Act 85 of 1987 and deleted by s. 12 of Act 113 of 1993.]
(7A) . . .
[Sub-s. (7A) inserted by s. 10 (1) (d) of Act 96 of 1985 and deleted by s. 12 of Act 113 of 1993.]
(8) The provisions of this section shall mutatis mutandis apply with reference to any permanent shipbuilding structure the erection of which was commenced by the taxpayer on or after the rst day of January, 1966, and the cost of improvements (other than repairs) effected thereto if such structure was wholly or mainly used during the year of assessment for the purposes of the shipbuilding trade, and for the purposes of this subsection any reference in the said provisions to a building shall be construed as a reference to a shipbuilding structure and any reference therein to improvements to a building shall be construed as a reference to improvements to a shipbuilding structure.
[Sub-s. (8) added by s. 17 (1) (f) of Act 55 of 1966.]
(9) For the purposes of this section— ‘improvements’, in relation to any improvements
commenced on or after the rst day of April, 1971, SAIT CompendIum oF TAx LegISLATIon VoLume 1
means any extension, addition or improvements (other than repairs) to a building which is or are effected for the purpose of increasing or improving the industrial capacity of the building;
‘shipbuilding structure’ means any launching way, tting-out quay or craneway which is not part of a building.
[Sub-s. (9) added by s. 17 (1) (f) of Act 55 of 1966 and substituted by s. 13 (1) (c) of Act 88 of 1971.]
[S. 13 amended by s. 30 of Act 60 of 2001.]
13bis Deductions in respect of buildings used by hotel keepers
(1) Notwithstanding anything to the contrary contained in paragraph (ii) of the proviso to paragraph (e) of section eleven, there shall be allowed to be deducted from the income of any taxpayer for any year of assessment ending on or after the rst day of January, 1964, an allowance equal to two per cent, of the cost (after the set-off of any amount as provided in subsection (6)) to the taxpayer— (a) . . .
[Para. (a) deleted by s. 46 (1) (a) of Act 31 of 2013 – date
of commencement: 1 January 2014; the deletion applies in respect of years of assessment commencing on or after that date.]
(b) . . .
[Para. (b) deleted by s. 46 (1) (a) of Act 31 of 2013 – date of commencement: 1 January 2014; the deletion applies
in respect of years of assessment commencing on or after that date.]
(c) of any building the erection of which was commenced by the taxpayer on or after the rst day of January, 1964, and of any improvements (other than repairs) thereto commenced not later than the thirtieth day of June, 1965, if such building—
(i) was brought into use not later than the thirtieth day of June, 1965; and
(ii) was during the year of assessment wholly or mainly used by the taxpayer for the purpose of carrying on therein his trade of hotel keeper or was during such year let by the taxpayer and wholly or mainly used by the lessee for the purpose of carrying on therein the lessee’s trade of hotel keeper;
(d) of such portion—
(i) of any building (other than a building in respect
of the cost of which an allowance under the preceding provisions of this subsection is or was deductible from the income of the taxpayer for the current or any previous year of assessment) the erection of which was commenced by the taxpayer on or after the rst day of January, 1964; or
(ii) of any improvements (other than repairs) to any building referred to in this paragraph, if such improvements were commenced on or after the rst day of January, 1964; or
[Sub-para. (ii) substituted by s. 31 (1) (a) of Taxation Laws Amendment Act, 2015 (‘or paragraph (a) or (b)’ deleted after ‘in this paragraph’) – date of commencement: 1 January 2016; the substituted subparagraph applies iro years of assessment commencing on or after that date.]
(iii) of any improvements (other than repairs) to any building referred to in paragraph (c), if such improvements were commenced on or after the rst day of July, 1965,
as—
(aa) was during the year of assessment used by the
taxpayer for the purpose of carrying on therein his trade of hotel keeper; or
149
INCOME TAX ACT – SECTIONS