Page 187 - SAIT Compendium 2016 Volume1

s 23K INCOME TAX ACT 58 OF 1962 s 23M
(i) there is any material change in respect of any fact or circumstance which in uenced any decision of the Commissioner relating to the issuing of that directive; and
(ii) that change would, had the change been anticipated by the Commissioner at the time of issuing the directive, have resulted in the Commissioner not issuing the directive or issuing the directive on terms that are less favourable to that acquiring company,
the directive will cease to apply with effect from the date on which that change takes effect.
(b) Where any decision relating to the issuing of a directive by the Commissioner in terms of subsection (3) was made by the Commissioner as a direct or indirect result of fraud, misrepresentation or non-disclosure of material facts, that directive will cease to apply with effect from the date that the directive took effect.
(9) The Minister may make regulations prescribing circumstances in which subsection (2) does not apply.
(10) Subsection (2) does not apply in respect of any amount of interest incurred by an acquiring company—
(a) in terms of a debt if that debt was issued, assumed or
used directly or indirectly for the purpose of—
(i) procuring, enabling, facilitating or funding the acquisition by that acquiring company of any asset in terms of a reorganisation transaction
entered into on or after 1 April 2014; or
(ii) redeeming, re nancing, substituting or settling, on or after 1 April 2014, a debt issued, assumed or used directly or indirectly for the purpose of procuring, enabling, facilitating or funding the acquisition by that acquiring company of any asset in terms of a reorganisation transaction entered into on or after 3 June 2011 and on or
before 31 March 2014; or
(b) in terms of a debt—
(i) issued, assumed or used in terms of an acquisition transaction entered into on or after 1 April 2014; or
(ii) issued, assumed or used, on or after 1 April 2014, directly or indirectly for the purpose of redeeming, re nancing, substituting or settling a debt that was issued, assumed or used in terms of an acquisition transaction entered into on or after 1 January 2013 and on or before 31 March
2014. (c) . . .
[Para. (c) deleted by s. 39 (c) of Taxation Laws Amendment Act, 2015 – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
[Sub-s. (10) added by s. 59 (1) (c) of Act 31 of 2013 – date of commencement: 1 April 2014.]
[S. 23K inserted by s. 49 (1) of Act 24 of 2011 – date of commencement deemed to have been 3 June 2011. This section applies in respect of any amount of interest incurred in terms of a debt instrument where that debt instrument was issued or used for the purpose of procuring, enabling, facilitating or funding the acquisition by an acquiring company of an asset in terms of a reorganisation transaction entered into on or after that date and on or before 31 March 2014.]
23L Limitation of deductions in respect of certain short-term insurance policies
[Heading substituted by s. 60 (1) (a) of Act 31 of 2013 – date of commencement: 1 April 2014 – the substitution applies in respect of premiums incurred on or after that date.]
(1) For the purposes of this section— ‘investment policy’ . . .
[De nition of ‘investment policy’ deleted by s. 60 (1) of Act 31 of 2013 – date of commencement: 1 April 2014 – the substitution applies in respect of premiums incurred on or after that date.]
‘policy’ means a policy of insurance or reinsurance other than a long-term policy as de ned in section 1 of the Long-term Insurance Act;
[De nition of ‘policy’ substituted by s. 60 (1) (c) of Act 31 of 2013 – date of commencement: 12 December 2013.]
‘policy bene ts’ means any amount, in cash or otherwise, received or accrued under a policy;
‘premium’ means the consideration given or to be given in return for an undertaking to provide policy bene ts.
(2) No deduction is allowed in respect of any premium incurred by a person in terms of a policy to the extent that the premium is not taken into account as an expense for the purposes of nancial reporting pursuant to IFRS in either the current year of assessment or a future year of assessment.
[Sub-s. (2) substituted by s. 60 (1) (d) of Act 31 of 2013 – date of commencement: 1 April 2014 – the substituted subsection applies in respect of premiums incurred on or after that date.]
(3) Where policy bene ts are received by or accrue to a person in terms of a policy during a year of assessment, there must be included in the gross income of that person an amount equal to the aggregate amount of all policy bene ts received by or accrued to that person during that year of assessment and previous years of assessment in respect of that policy, less—
(a) the aggregate amount of premiums incurred in terms
of that policy that were not deductible in terms of
subsection (2); and
(b) the aggregate amount of policy bene ts in respect of
that policy that were included in the gross income of
that person during previous years of assessment.
[Sub-s. (3) substituted by s. 60 (1) (d) of Act 31 of 2013 – date of commencement: 1 April 2014 – the substituted subsection applies in respect of premiums incurred on or after that date.]
[S. 23L inserted by s. 50 (1) of Act 22 of 2012 – date of commencement: 31 March 2014 (the original commencement date of s. 23L (‘1 January 2013’) was retrospectively replaced by s. 196 of Act 31 of 2013); s. 23L applies in respect of premiums incurred and policy bene ts received or accrued after 31 March 2014.]
23M Limitation of interest deductions in respect of debts owed to persons not subject to tax under this Chapter
(1) For the purposes of this section—
‘adjusted taxable income’ means taxable income—
Prelex
Wording of para. (c) in force until its deletion wef date of promulgation of Taxation Laws Amendment Act, 2015
(c) if a directive contemplated in subsection (3) has
been issued by the Commissioner in respect of that amount of interest.
(a)
(b)
reduced by—
(i) any amount of interest received or accrued;
(ii) any amount included in the income of a person as contemplated in section 9D (2);
(iii) any amount recovered or recouped in respect of an allowance contemplated in this Act in respect of a capital asset as de ned in section 19; and
with the addition of—
(i) any amount of interest incurred;
SAIT CompendIum oF TAx LegISLATIon VoLume 1
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INCOME TAX ACT – SECTIONS