Page 167 - SAIT Compendium 2016 Volume1

s 18A INCOME TAX ACT 58 OF 1962 s 18A
(c)
(ii) furnishes the Commissioner with a written undertaking that such agency will comply with the provisions of this section; and
(iii) waives diplomatic immunity for the purposes of subsection (5) (i); or
[Para. (bA) inserted by s. 34 (1) (a) of Act 60 of 2008.] any department of government of the Republic in the national, provincial or local sphere as contemplated in section 10 (1) (a) to be used for purpose of any activity contemplated in Part II of the Ninth Schedule,
in Parliament within a period of 12 months after the date of publication by the Minister of that activity or those requirements, as the case may be, in the Gazette, for incorporation into this Act.
[Sub-s. (1B) inserted by s. 20 (e) of Act 30 of 2002.] (1C) The constitution or founding document of a public bene t organisation carrying on the activity contemplated in paragraph 4 (d) of Part II of the Ninth Schedule, must
expressly provide that the organisation—
(a) may not issue any receipt contemplated in subsection
(2) in respect of any donation made by a person to that public bene t organisation, unless—
(i) that donation is made by that person on or after 1 August 2002; and
[Sub-para. (i) substituted by s. 26 (1) (c) of Act 31 of 2005 and by s. 37 (1) (c) of Act 7 of 2010.]
(ii) that person (in the case of a company, together with any other company in the same group of companies as that company) has during the relevant year of assessment of that person donated an amount of at least R1 million to that organisation;
[Sub-para. (ii) amended by s. 2 (2) (b) of Act 8 of 2007 and by s. 1 (2) (c) of Act 3 of 2008.]
(b) must ensure that every donation contemplated in paragraph (a), in respect of which such a receipt has been issued, will be matched by a donation to that organisation of the same amount made by a person who is not a resident and which is made from funds generated and held outside the Republic; and
(c) must utilise the amount of—
(i) all donations contemplated in paragraph (a),
in respect of which such a receipt has been issued, and all income derived therefrom, in the Republic in carrying on that activity; and
(ii) all donations contemplated in paragraph (b), either in the Republic in carrying on that activity, or in respect of a transfrontier conservation area of which the Republic forms part.
[Sub-s. (1C) inserted by s. 34 (1) (g) of Act 45 of 2003 and amended by s. 16 (e) of Act 20 of 2006.]
(2) Any claim for a deduction in respect of any donation under subsection (1) shall not be allowed unless supported by—
(a) a receipt issued by the public bene t organisation,
institution, board, body or agency or the department concerned, on which the following details are given, namely—
(i) the reference number of the public bene t organisation, institution, board, body or agency issued by the Commissioner for the purposes of this section;
(ii) the date of the receipt of the donation;
(iii) the name of the public bene t organisation, institution, board, body or agency or the department which received the donation, together with an address to which enquiries may
be directed in connection therewith;
(iv) the name and address of the donor;
(v) the amount of the donation or the nature of the donation (if not made in cash);
(vi) a certi cation to the effect that the receipt is issued for the purposes of section 18A of the Income Tax Act, 1962, and that the donation has been or will be used exclusively for the object of the public bene t organisation, institution, board, body or agency concerned or, in the case of a department in carrying on the relevant public bene t activity; or
[Para. (c) inserted by s. 34 (1) (b) of Act 45 of 2003 and substituted by s. 16 (c) of Act 20 of 2006 and by s. 37 (1) (a) of Act 7 of 2010.]
as does not exceed—
(A) where the taxpayer is a portfolio of a collective
investment scheme, an amount determined in accordance with the following formula:
A = B × 0,005 in which formula:
(AA) ‘A’ represents the amount to be determined; (BB) ‘B’ represents the average value of the aggregate of all of the participatory interests held by investors in the portfolio for the year of assessment, determined by using the aggregate value of all of the participatory interests in the portfolio at the end of each day
during that year; or
(B) in any other case, ten per cent of the taxable income
(excluding any retirement fund lump sum bene t, retirement fund lump sum withdrawal bene t and severance bene t) of the taxpayer as calculated before allowing any deduction under this section: Provided that any amount of a donation made as contemplated in this subsection and which has been disallowed solely by reason of the fact that it exceeds the amount of the deduction allowable in respect of the year of assessment shall be carried forward and shall, for the purposes of this section, be deemed to be a donation actually paid or transferred in the next succeeding year of assessment.
[Proviso added by s. 52 (1) (c) of Act 31 of 2013 – date of commencement: 1 March 2014; the proviso applies in respect of donations paid or transferred during years of assessment commencing on or after that date.]
[Para. (B) substituted by s. 52 (1) (a) of Act 31 of 2013 – date of commencement: 12 December 2013 and by s. 52 (1) (b) of Act 31 of 2013 – date of commencement: 1 March 2014; the substituted paragraph applies in respect of years of assessment commencing on or after that date.]
[Sub-s. (1) amended by s. 20 (a) and (d) of Act 30 of 2002, by s. 34 (1) (a) of Act 45 of 2003, by s. 18 of Act 8 of 2007, by s. 34 (1) (b) of Act 60 of 2008 and by s. 44 (1) of Act 24 of 2011 – commencement date: 1 January 2012. This amendment applies in respect of amounts paid or transferred during years of assessment commencing on or after that date.]
(1A) The Minister may, by regulation, prescribe additional requirements with which a public bene t organisation, institution, board or body or the department carrying on any speci c public bene t activity identi ed by the Minister in the regulations, must comply before any donation made to that public bene t organisation, institution, board or body or the department shall be allowed as a deduction under subsection (1).
[Sub-s. (1A) inserted by s. 20 (e) of Act 30 of 2002 and substituted by s. 34 (1) (f) of Act 45 of 2003, by s. 16 (d) of Act 20 of 2006 and by s. 37 (1) (b) of Act 7 of 2010.]
(1B) Any activity determined by the Minister in terms of subsection (1) (a) or any requirements prescribed by the Minister in terms of subsection (1A), must be tabled
SAIT CompendIum oF TAx LegISLATIon VoLume 1
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INCOME TAX ACT – SECTIONS