Page 165 - SAIT Compendium 2016 Volume1

s 13sept INCOME TAX ACT 58 OF 1962 s 16
to dispose of the low-cost residential unit to the taxpayer (or an associated institution, as de ned in the Seventh Schedule, in relation to the taxpayer) for an amount equal to the actual cost (other than borrowing or nance costs) to the employee of the unit and the land on which the unit is erected;
(b) the employee must pay interest to the taxpayer in respect of the amount owing to the taxpayer by the employee in respect of the unit; or
(c) the disposal is for an amount that exceeds the actual cost (other than borrowing or nance costs) to the taxpayer of the unit and the land on which the unit is erected.
(4) If the amount owing contemplated in subsection (2) or any part thereof is paid to the taxpayer, the taxpayer is deemed to have recovered or recouped an amount equal to the lesser of—
(a) the amount so paid; or
(b) the amount allowed as a deduction in terms of this
section in the current and any previous year of assessment.
[S. 13sept inserted by s. 32 (1) of Act 60 of 2008.]
14 . . .
[S. 14 amended by s. 13 of Act 90 of 1962, substituted by s. 19 (1) of Act 55 of 1966, amended by s. 17 (a), (b) and (c) of Act 85 of 1974, by s. 12 (a), (b) and (c) of Act 103 of 1976, by s. 11 of Act 104 of 1979, by s. 10 of Act 65 of 1986, by s. 14 (1) of Act 113 of 1993, by s. 8 (1) of Act 140 of 1993, by s. 14 (a), (b), (c) and (d) of Act 21 of 1995, by s. 14 of Act 28 of 1997, by s. 23 (a), (b) and (c) of Act 59 of 2000, by s. 14 of Act 3 of 2008 and by s. 42 of Act 24 of 2011 and repealed by s. 49 of Act 31 of 2013 – date of commencement: 12 December 2013.]
14bis . . .
[S. 14bis inserted by s. 16 (1) of Act 88 of 1965, amended by s. 15 (a), (b), (c) and (d) of Act 141 of 1992, by s. 15 (1) of Act 113 of 1993, by s. 9 (1) of Act 140 of 1993, by s. 15 of Act 21 of 1995 and by s. 24 (a), (b) and (d) of Act 59 of 2000 and repealed by s. 50 of Act 31 of 2013 – date of commencement: 12 December 2013.]
15 Deductions from income derived from mining operations
There shall be allowed to be deducted from the income derived by the taxpayer from mining operations—
(a) an amount to be ascertained under the provisions of
section 36, in lieu of the allowances in sections 11 (e),
(f), (gA), (gC), (o), 12D, 12DA, 12F and 13quin; [Para. (a) substituted by s. 20 of Act 55 of 1966, by s. 18 of Act 129 of 1991, by s. 24 of Act 31 of 2005 and by s. 29 of Act 35 of 2007.]
(b) any expenditure incurred by the taxpayer during the year of assessment on prospecting operations (including surveys, boreholes, trenches, pits and other prospecting work preliminary to the establishment of a mine) in respect of any area within the Republic together with any other expenditure which is incidental to such operations: Provided that—
(i) except in the case of any person who derives income from mining for diamonds in the Republic, the Commissioner may determine that any expenditure referred to in this paragraph shall be deducted in a series of annual instalments, so that only a portion of such expenditure is deducted in the year of assessment in which it is incurred, and the residue in such subsequent years of assessment and in such proportions
as the Commissioner may determine, until the
expenditure is extinguished;
(ii) in the case of any company which derives
income from different classes of mining operations, the deduction under this paragraph shall be made from the income derived from such class or classes of mining operations and in such proportions as the Commissioner may determine;
[NB: Paras. (i) and (ii) of the proviso to para. (b) have been substituted by s. 33 (1) of Taxation Laws Amendment Act, 2015, a provision that is to come into operation on a date to be determined by the Minister of Finance in the Gazette. See Pendlex below.]
(iii) any expenditure which has been allowed to be deducted from the income of any person in terms of this paragraph shall not be included in such person’s capital expenditure as de ned in subsection (11) of section thirty-six.
[Para. (b) amended by s. 16 of Act 141 of 1992 and by s. 15 of Act 20 of 2006.]
15A Amounts to be taken into account in respect of trading stock derived from mining operations
For the purposes of section 22, trading stock related to mining operations—
(a) includes anything that is—
(i) won or in any other manner acquired during the course of mining operations by a taxpayer for the purposes of extraction, processing, separation, re ning, bene ciation, manufacture, sale or exchange by the taxpayer or on the taxpayer’s behalf; and
(ii) taken into account as inventory in terms of South African Generally Accepted Accounting Practice; and
(b) must not be valued at an amount less than the amount so taken into account.
[S. 15A inserted by s. 15 (1) of Act 69 of 1975, amended by s. 11 of Act 104 of 1980, repealed by s. 15 of Act 101 of 1990 and inserted by s. 30 (1) of Act 17 of 2009.]
16 . . .
[S. 16 substituted by s. 16 (1) of Act 89 of 1969, amended by s. 15 of Act 94 of 1983 and repealed by s. 13 of Act 21 of 1994.]
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Pendlex iro paras. (i) and (ii) of proviso to para. (b) (to come into operation on a date to be determined by the Minister of Finance in the Gazette)
(i) except in the case of any person who derives income from mining for diamonds in the Republic, any expenditure referred to in this paragraph shall be deducted in a series of annual instalments, so that only a portion of such expenditure is deducted in the year of assessment in which it is incurred, and the residue in such subsequent years of assessment and in such proportions as may be determined by public notice issued by the Commissioner, until the expenditure is extinguished;
(ii) in the case of any company which derives income from different classes of mining operations, the deduction under this paragraph shall be made from the income derived from such class or classes of mining operations and in such proportions as may be determined by public notice issued by the Commissioner;
INCOME TAX ACT – SECTIONS