Page 202 - SAIT Compendium 2016 Volume1

s 24J INCOME TAX ACT 58 OF 1962 s 24J
(c) any combination of amounts referred to in paragraph (a) or (b);
‘holder’, in relation to an income instrument—
(a) means any person who has become entitled to any interest or amount receivable in terms of such income
instrument; or
[Para. (a) substituted by s. 24 (1) (b) of Act 32 of 2004.] (b) at any particular time, means any person who, if any interest payable in terms of such income instrument was due and payable at that time, would be entitled to
receive payment of such interest; ‘income instrument’ means—
(a) in the case of any person other than a company, any instrument—
(i) the term of which will, or is reasonably likely to, exceed one year; and
(ii) which is issued or acquired at a discount or premium or bears deferred interest; and
(b) in the case of any company, any instrument;
[De nition of ‘income instrument’ substituted by s. 14 (1) (c) of Act 36 of 1996.]
‘initial amount’ means the issue price or transfer price, as the case may be, in relation to an instrument’;
‘instrument’ means—
[Words in de nition of ‘instrument’ preceding para. (a) substituted by s. 54 (1) (c) of Act 22 of 2012 – date of
commencement deemed to have been 29 February 2012.]
(a) . . .
[Para. (a) substituted by s. 53 (1) (c) of Act 24 of 2011
and deleted by s. 54 (1) (d) of Act 22 of 2012 – date of commencement: 1 January 2013.]
(b) . . .
[Para. (b) deleted by s. 54 (1) (d) of Act 22 of 2012 – date
of commencement: 1 January 2013.]
(c) any interest-bearing arrangement or debt;
[Para. (c) substituted by s. 53 (1) (c) of Act 24 of 2011, by s. 54 (1) (e) and (f) of Act 22 of 2012 and by s. 69 (1) (a) of
Act 31 of 2013 – substitution deemed to have come into operation on 1 April 2013 and applies in respect of years of assessment commencing on or after that date.]
(d) any acquisition or disposal of any right to receive interest or the obligation to pay any interest, as the case may be, in terms of any other interest bearing arrangement; or
(e) any repurchase agreement or resale agreement,
which was—
(i) issued or deemed to have been issued after 15 March 1995;
(ii) issued on or before 15 March 1995 and transferred on or after 19 July 1995; or
(iii) in so far as it relates to the holder thereof, issued on or before 15 March 1995 and was unredeemed on 14 March 1996 (excluding any arrangement contemplated in subparagraphs (i) and (ii)),
but excluding any lease agreement (other than a sale and leaseback arrangement as contemplated in section 23G) or any policy issued by an insurer as de ned in section 29A; [Words following sub-para. (iii) substituted by s. 41 (1) (a) of Act 43 of 2014 – date of commencement deemed to have been 1 January 1996; the substitution applies iro years of assessment commencing on or after that date.] [De nition of ‘instrument’ amended by s. 14 (1) (d) of Act 36 of 1996 and by s. 19 (1) (c) of Act 28 of 1997.]
‘interest’ includes the—
(a) gross amount of any interest or related finance
represents compensation for any amount to which the lender would, but for such lending arrangement, have been entitled; and
[Para. (b) substituted by s. 27 (1) (a) of Act 53 of 1999.] (c) absolute value of the difference between all amounts receivable and payable by a person in terms of a sale and leaseback arrangement as contemplated in section 23G throughout the full term of such arrangement, to
which such person is a party, irrespective of whether such amount is—
(i) calculated with reference to a xed rate of interest or a variable rate of interest; or
(ii) payable or receivable as a lump sum or in unequal instalments during the term of the nancial arrangement;
[De nition of ‘interest’ substituted by s. 19 (1) (a) of Act 28 of 1997.]
‘interest rate agreement’ means an interest rate agreement as de ned in section 24K;
[De nition of ‘interest rate agreement’ inserted by s. 19 (1) (b) of Act 28 of 1997.]
‘issue’, in relation to an instrument, means the creation of the liability to pay or the right to receive an amount or amounts in terms of such instrument;
‘issue price’, in relation to an instrument, means the market value of the consideration given or received, as the case may be, for the issue of the instrument as determined on the date on which that instrument is issued;
[De nition of ‘issue price’ substituted by s. 24 (1) (c) of Act 32 of 2004.]
‘issuer’, in relation to any instrument—
(a) means any person who has incurred any interest or
has any obligation to repay any amount in terms of
such instrument; or
[Para. (a) substituted by s. 24 (1) (d) of Act 32 of 2004.] (b) at any particular time, means any person who, if any interest payable in terms of such instrument was due and payable at that time, would be liable to pay such
interest;
‘lending arrangement’ means any arrangement or
agreement in terms of which—
(a) a person (in this section referred to as the lender)
lends any instrument to another person (in this section
referred to as the borrower); and
(b) the borrower in return undertakes to return any
instrument of the same kind and of the same or
equivalent quantity and quality to the lender;
[De nition of ‘lending arrangement’ inserted by s. 27 (1) (b) of Act 53 of 1999.]
‘redemption’, in relation to an instrument, means the discharging of all liability to pay all amounts in terms of such instrument;
‘redemption payment’, in relation to an instrument, means any payment made or received which has the effect of redeeming such instrument;
‘repurchase agreement’ means the obtaining of money (which money shall for the purposes of this section be deemed to have been so obtained by way of a loan) through the disposal of an asset by any person to any other person subject to an agreement in terms of which such person undertakes to acquire from such other person at a future date the asset so disposed of or any other asset issued by the issuer of, and which has been so issued subject to the same conditions regarding term, interest rate and price as, the asset so disposed of;
‘resale agreement’ means the provision of money (which money shall for the purposes of this section be deemed to have been so provided in the form of a loan)
(b)
charges, discount or premium payable or receivable in terms of or in respect of a financial arrangement;
amount (or portion thereof) payable by a borrower to the lender in terms of any lending arrangement as
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SAIT CompendIum oF TAx LegISLATIon VoLume 1