Page 206 - SAIT Compendium 2016 Volume1

s 24J INCOME TAX ACT 58 OF 1962 s 24JA
(ii) in respect of any other company, during any year of assessment commencing on or after 1 April 2014.
[Para. (g) added by s. 69 (1) (e) of Act 31 of 2013 – date of commencement: 1 April 2014.]
[NB: Sub-s. (9) has been deleted by s. 54 (1) (i) of Act 22 of 2012, a provision that was to have come into operation on 1 January 2014; however, the said s. 54 (1) (i) has been deleted by s. 198 of Act 31 of 2013, with retrospective effect from 1 February 2013.]
(9A) (a) Any company that made an election contemplated in subsection (9) and in respect of which the Commissioner granted an approval as contemplated in that subsection is deemed to have—
(i) disposed of all instruments, interest rate agreements or option contracts contemplated in subsection (9); and
(ii) reacquired the instruments, interest rate agreements or option contracts,
held and not disposed of at the end of the year of assessment for an amount equal to the market value, as contemplated in subsection (9) (c), on the last day of that year of assessment.
(b) Paragraph (a) applies—
(i) in the case of a company that is a covered person
as de ned in section 24JB, in respect of the year of assessment of that covered person immediately preceding the year of assessment ending on or after 1 January 2014; and
[Sub-para. (i) substituted by s. 41 (1) (c) of Act 43 of 2014 – date of commencement deemed to have been 1 January 2014; the substitution applies iro years of assessment commencing on or after that date.]
(ii) in the case of any other company, in respect of the year of assessment of the company immediately preceding the year of assessment commencing on or after 1 April 2014.
[Sub-s. (9A) inserted by s. 69 (1) (f) of Act 31 of 2013 – date of commencement: 1 April 2014.]
(10) Any reference in this section to any payment made or an amount paid or payable, consideration given or received or any payment received or an amount received or receivable, as the case may be, shall be construed as including a payment or an amount or consideration otherwise than in cash.
(11) . . .
[Sub-s. (11) deleted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(12) This section must not apply to an instrument if—
(a) the holder of that instrument has, throughout any period during a year of assessment during which that holder holds that instrument, a right to require the redemption
of that instrument at any time during that period; and
(b) that instrument does not provide for the payment of
any deferred interest.
[Sub-s. (12) added by s. 54 (1) (j) of Act 22 of 2012 – date of commencement deemed to have been 1 April 2012; the subsection applies in respect of amounts received by or accrued to or incurred by any person during years of assessment commencing on or after that date.]
[S. 24J inserted by s. 21 (1) of Act 21 of 1995.]
24JA Sharia compliant nancing arrangements
(1) For the purposes of this section—
‘bank’ means any—
(a) bank as de ned in section 1 of the Banks Act;
[Para. (a) substituted by s. 70 of Act 31 of 2013 – date of commencement: 12 December 2013.]
‘diminishing musharaka’ means a sharia arrangement between a bank and a client of that bank whereby—
(b) (c)
mutual bank as de ned in section 1 of the Mutual Banks Act, 1993 (Act 124 of 1993); or
co-operative bank as de ned in section 1 of the Co- operative Banks Act, 2007 (Act 40 of 2007);
‘listed company’ means a listed company as contemplated in paragraph (a) of the de nition of ‘listed company’ in section 1 (1);
[De nition of ‘listed company’ inserted by s. 45 (1)
(a) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 January 2016; the inserted de nition applies iro years of assessment commencing on or after that date.]
‘mudaraba’ means a sharia arrangement between a bank and a client of that bank whereby—
(a) funds are deposited with the bank by the client;
(b) the anticipated return in respect of the sharia
arrangement is dependent on the amount deposited by the client in combination with the duration of the period for which the funds are deposited;
(c) the bank invests the funds deposited by the client in other sharia arrangements;
(d) the client bears the risk of the loss in respect of the sharia arrangements contemplated in paragraph (c); and (e) the return in respect of the sharia arrangements contemplated in paragraph (c) is divided between the client and the bank as agreed at the time that the client
deposits the funds with the bank;
‘murabaha’ means a sharia arrangement between a
nancier and a client of that nancier, one of which is a bank or a listed company, whereby—
[Words preceding para. (a) substituted by s. 45 (1) (b) of Taxation Laws Amendment Act, 2015 (‘or a listed company’ inserted) – date of commencement: 1 January 2016; the substitution applies iro years of assessment commencing on or after that date.]
(a) the nancier will acquire an asset from a third party (the seller) for the bene t of the client on such terms and conditions as are agreed upon between the client and the seller;
(b) the client—
(i) will acquire the asset from the nancier within
180 days after the acquisition of the asset by the
nancier contemplated in paragraph (a); and
(ii) agrees to pay to the nancier a total amount
that—
(aa) exceeds the amount payable by the nancier
to the seller as consideration to acquire the
asset;
(bb)is calculated with reference to the
consideration payable by the nancier to the seller in combination with the duration of the sharia arrangement; and
(cc) may not exceed the amount agreed upon between the nancier and the client when the sharia arrangement is entered into; and
(c) no amount is received by or accrues to the nancier in respect of that asset other than an amount contemplated in paragraph (b)(ii);
[De nition of ‘murabaha’ substituted by s. 54 (1) (a) of Act 24 of 2011 – date of commencement: 1 January 2013.]
(a)
(b) (c)
(i) the bank and the client jointly acquire an asset from a third party (the seller); or
(ii) the bank acquires an interest in an asset from the client;
the client will acquire the bank’s interest in the asset after the acquisition of the asset by the bank as contemplated in paragraph (a); and
the amount of consideration payable by the client to the bank for the acquisition of the interest of the bank in the asset will be paid over a period of time as agreed between the client and the bank;
198
SAIT CompendIum oF TAx LegISLATIon VoLume 1