Page 195 - SAIT Compendium 2016 Volume1

s 24G INCOME TAX ACT 58 OF 1962 s 24I
tolling period (for which purpose a portion of a year shall be regarded as a year) and—
(a) in the case of expenditure incurred on permanent
works or the erection or construction of ancillary
services, 25 years; and
(b) in the case of such expenditure incurred on road
pavements or major rehabilitation of road pavements,
8 years.
(4) No deduction or allowance shall be granted under this
Act in respect of expenditure contemplated in subsection (2) otherwise than as provided in that subsection.
[Sub-s. (4) substituted by s. 14 (1) (f) of Act 16 of 2004.] (5) The allowances which may be granted under subsection (2) (a), (b) and (d) in any year of assessment in respect of any single toll road shall not in the aggregate exceed the taxable income (as determined before the deduction of the said allowances) derived by the taxpayer
during such year from—
(a) the exploitation of such toll road or any ancillary
service in relation to such toll road; and
(b) any interest derived in the ordinary course of such exploitation and the nancing of any expenditure contemplated in subsection (3) which relates to such
toll road.
[S. 24G inserted by s. 20 (1) of Act 90 of 1988.]
24H Persons carrying on trade or business in partnership
(1) For the purposes of this section, ‘limited partner’ means any member of a partnership en commandite, an anonymous partnership, any similar partnership or a foreign partnership, if such member’s liability towards a creditor of the partnership is limited to the amount which the member has contributed or undertaken to contribute to the partnership or is in any other way limited.
[Sub-s. (1) substituted by s. 46 (1) (a) of Act 7 of 2010.] (2) Where any trade or business is carried on in partnership, each member of such partnership shall, notwithstanding the fact that he may be a limited partner, be deemed for the purposes of this Act to be carrying on
such trade or business.
(3) Notwithstanding anything to the contrary in this
Act contained, the amount of any allowance or deduction which may be granted to any taxpayer under any provision of this Act in respect of or in connection with any trade or business carried on by him in a partnership in relation to which he is a limited partner shall not in the aggregate exceed the sum of—
(a) the amount, whether it consists of the taxpayer’s contribution to the partnership or of any other amount, for which the taxpayer is or may be held liable to any creditor of the partnership; and
(b) any income received by or accrued to the taxpayer from such trade or business.
[Sub-s. (3) amended by s. 26 of Act 74 of 2002.]
(4) Any allowance or deduction which has been disallowed under the provisions of subsection (3) shall be carried forward and be deemed to be an allowance or deduction to which the taxpayer is entitled in the succeeding year of assessment.
(5) (a) Where any income has in common been received by or accrued to the members of any partnership or foreign partnership, a portion (determined in accordance with any agreement between such members as to the ratio in which the pro ts or losses of the partnership are to be shared) of such income shall, notwithstanding anything to the contrary contained in any law or the relevant agreement of partnership, be deemed to have been received by or to
have accrued to each such member individually on the date upon which such income was received by or accrued to them in common.
[Para. (a) substituted by s. 46 (1) (b) of Act 7 of 2010.] (b) Where a portion of any income is under the provisions of paragraph (a) deemed to have been received by or to have accrued to a taxpayer, a portion (determined as aforesaid) of any deduction or allowance which may be granted under the provisions of this Act in the determination of the taxable income derived from such income shall be granted in the determination of the
taxpayer’s taxable income so derived.
[S. 24H inserted by s. 21 of Act 90 of 1988.]
24I Gains or losses on foreign exchange transactions
(1) For the purposes of this section—
‘acquisition rate’ means the exchange rate in respect of an exchange item obtained by dividing the amount of the expenditure incurred for the acquisition of such exchange item by the foreign currency amount in respect of such exchange item;
‘affected contract’ means any foreign currency option contract or forward exchange contract which has been entered into by any person during any year of assessment to serve as a hedge in respect of a debt, where—
(a) such debt has not yet been incurred by, or the amount payable in respect of such debt has not yet accrued to, such person during such year of assessment; and
(b) such debt—
(i) is to be utilised by such person to acquire any
asset or to nance any expense; or
(ii) will arise from the sale of any asset or the supply
of any services,
in the ordinary course of the person’s trade in terms of an agreement entered into by such person prior to the end of such year of assessment;
[De nition of ‘affected contract’, previously de nition of ‘affected forward exchange contract’, inserted by s. 18 (1) (a) of Act 21 of 1994 and substituted by s. 13 (1) (a) of Act 36 of 1996, by s. 35 (1) (a) of Act 30 of 1998 and by s. 53 (1) (a) of Act 22 of 2012.]
‘disposal rate’ means the exchange rate in respect of an exchange item obtained by dividing the amount received or accrued in respect of the disposal of such exchange item by the foreign currency amount in respect of such exchange item;
‘exchange difference’ means the foreign exchange gain or foreign exchange loss in respect of an exchange item during any year of assessment determined by multiplying such exchange item by the difference between—
(a)
(b)
the ruling exchange rate on transaction date in respect of such exchange item during that year of assessment, and—
(i) the ruling exchange rate at which such exchange item is realised during that year of assessment; or (ii) the ruling exchange rate at which such exchange item is translated at the end of that year of
assessment; or
the ruling exchange rate at which such exchange item was translated at the end of the immediately preceding year of assessment or at which it would have been translated had this section been applicable at the end of that immediately preceding year of assessment, and—
(i) the ruling exchange rate at which such exchange item is realised during that year of assessment; or (ii) the ruling exchange rate at which such exchange item is translated at the end of that year of
assessment;
SAIT CompendIum oF TAx LegISLATIon VoLume 1
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INCOME TAX ACT – SECTIONS