Page 162 - SAIT Compendium 2016 Volume1

s 13quat INCOME TAX ACT 58 OF 1962 s 13quat
(b)
[Para. (a) substituted by s. 23 (f) of Act 31 of 2005.]
the total amount of the costs to the taxpayer (other than a taxpayer contemplated in paragraph (d)) of the erection, extension, addition or improvement and the extent that those costs relate to any portion of a building;
industrial activity or residential settlements to support
such activity;
[Para. (c) substituted by s. 19 (1) (a) of Act 32 of 2004.] (d) that area proportionately contributes or previously contributed a signi cant portion of the total revenue collections for all areas located within the current boundaries of that municipality, as measured in the
form of—
(i) property rates; or
(ii) assessed property values,
and where the contribution from that area is undergoing a sustained real or nominal decline; and
[Para. (d) substituted by s. 19 (1) (b) of Act 32 of 2004.]
[Para. (b) substituted by s. 23 (f) of Act 31 of 2005 and by s. 33 (1) (b) of Act 7 of 2010.]
(c)
(d)
particulars as to whether the costs referred to in paragraph (b) were incurred in respect of the erection or extension of or addition to a building as contemplated in subsection (3) (a) or the improvement of a building as contemplated in subsection (3) (b); and
[Para. (c) substituted by s. 23 (f) of Act 31 of 2005.]
in the case of a taxpayer who purchased the building or part of a building from a developer—
(i) the purchase price of that building or part;
(ii) the amount of the purchase price deemed to be a cost incurred by the taxpayer in terms of
subsection (3A); and
(iii) a certi cate from the developer in the form
prescribed by the Commissioner con rming that the requirements in subsection (2) (b), (c) and (d) have been met.
[Para. (d) added by s. 23 (g) of Act 31 of 2005.] [Sub-s. (4) amended by s. 5 (1) of Act 4 of 2008.]
(e)
signi cant scal measures have been implemented by that municipality to support the regeneration of that area, including—
(i)the appropriation of signi cant funds for developing the area in the annual budget of the municipality;
(ii) special tariffs for categories of residential,
(5) No deduction shall be allowed under this section in respect of any building or part of a building—
(a) where that taxpayer ceased to use that building or part
solely for purposes of that taxpayer’s trade during any previous year of assessment in or prior to which an allowance contemplated in subsection (2) was claimed;
[Para. (a) substituted by s. 23 (h) of Act 31 of 2005 and by s. 16 of Act 8 of 2007.]
(b) which has been disposed of by the taxpayer during any previous year of assessment; or
(c) which is brought into use by the taxpayer after 31 March 2020.
[Para. (c) added by s. 23 (j) of Act 31 of 2005 and
substituted by s. 29 (1) (f) of Act 60 of 2008 and by s. 34 (1) of Act 22 of 2012 – date of commencement: 30 March 2014; the substitution applies in respect of any building, part thereof or improvement thereto that is brought into use on or after that date.]
[Sub-s. (5) amended by s. 23 (h) of Act 31 of 2005.]
(6) For the purposes of this section, one area may be demarcated by a municipality where—
(a) that area is a developed urban location with the
municipality of Buffalo City, Cape Town, Ekurhuleni, Emalahleni, Emfuleni, eThekwini, Johannesburg, Mahikeng, Mangaung, Matjhabeng, Mbombela, Msunduzi, Nelson Mandela, Polokwane, Sol Plaatje or Tshwane;
[Para. (a) substituted by s. 32 (1) (a) of Taxation Laws Amendment Act, 2015 (‘Ekuthuleni’ replaced by ‘Ekurhuleni’ and ‘Ma keng’ by ‘Mahikeng’) – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
[Para. (f) deleted by s. 19 (1) (c) of Act 32 of 2004.]
(7) (a) Subject to paragraph (d), the area demarcated in
(b) (c)
that area is demarcated through formal resolution by the relevant municipal council;
[Para. (b) substituted by s. 12 of Act 16 of 2004.]
that area is prioritised in that municipality’s integrated development plan adopted and undertaken in terms of Chapter 5 of the Local Government: Municipal Systems Act, 2000 (Act 32 of 2000), as a priority area for further investments to promote business or
(bA) Where a municipality has a population of less than 1 million persons the Minister may by notice in the Gazette approve that municipality for the purposes of paragraph (b).
[Para. (bA) inserted by s. 32 (1) (c) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 January 2016.]
(c) For purposes of this subsection, the population of a municipality shall be the population gures as determined by Statistics South Africa in the Census for 2011 and the total population of that municipality must be rounded to the nearest multiple of 100 000.
[Para. (c) substituted by s. 32 (1) (d) of Taxation Laws Amendment Act, 2015 (‘Census for 2001’ replaced by ‘Census for 2011’) – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
(f)
. . .
the business community for the promotion of urban
development within that area.
commercial or industrial users; or (iii) partnership arrangements with
terms of subsection (6) may not exceed—
(i) where that municipality has a population of not more
than 500 000 persons, a total area of 150 hectares; or
(ii) where that municipality has a population of more than 500 000 persons, 150 hectares plus 20 hectares for each
additional 100 000 persons included in that population.
(b) Where that municipality has a population of 1 million persons or more, the municipal council may demarcate two areas in lieu of the one area demarcated in
terms of subsection (6): Provided that—
[Words in para. (b) preceding sub-para. (i) substituted by s. 32 (1) (b) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 January 2016.]
Prelex
Words in para. (b) preceding sub-para. (i) in force until 1 January 2016
(b) Where that municipality has a population of 2 million persons or more, the municipal council may demarcate two areas in lieu of the one area demarcated in terms of subsection (6) provided that—
(i) (ii)
the two areas do not in total exceed the one area contemplated in paragraph (a) (ii); and
each area otherwise satis es the requirements of subsection (6).
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SAIT CompendIum oF TAx LegISLATIon VoLume 1