Page 208 - SAIT Compendium 2016 Volume1

s 24JA INCOME TAX ACT 58 OF 1962 s 24JB
(ii) ‘A’ represents the total amount of the instalment payable by the client to the bank;
(iii) ‘B’ represents the expenditure incurred by the bank to acquire the portion of the interest in the asset transferred to the client in exchange for the instalment payable by the client to the bank.
[Sub-s. (6) substituted by s. 54 (1) (f) of Act 24 of 2011 – date of commencement: 1 January 2013.]
(7) Where any sukuk is entered into—
(d)
(ii) branch;
(iii) branch of a bank; or
(iv) controlling company,
as de ned in section 1 of the Banks Act;
any company or trust that forms part of a banking group as de ned in section 1 of the Banks Act, excluding—
(i) a company that is a long-term insurer as de ned in section 1 of the Long-term Insurance Act;
(ii) a company that is a short-term insurer as de ned in section 1 of the Short-term Insurance Act;
(iii) a company of which more than 50 per cent of
the shares are directly or indirectly held by a company contemplated in subparagraph (i) or (ii) if that company does not form part of the same group of companies as a bank;
(a)
the trust is deemed not to have acquired the asset from the government of the Republic, the public entity that is listed in Schedule 2 to the Public Finance Management Act or the listed company under the sharia arrangement;
[Para. (a) substituted by s. 45 (1) (f) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 January 2016; the substituted paragraph applies iro years of assessment commencing on or after that date.]
(b) the government, that public entity or that listed company is deemed not to have disposed of or reacquired the asset; and
[Para. (b) substituted by s. 45 (1) (f) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 January 2016; the substituted paragraph applies iro years of assessment commencing on or after that date.]
‘derivative’ means a derivative as de ned in and within the scope of International Accounting Standard 39 of IFRS or any other International Accounting Standard that replaces International Accounting Standard 39;
‘ nancial asset’ means—
(a) a nancial asset de ned in and within the scope of
International Accounting Standard 32 of IFRS or any other International Accounting Standard that replaces International Accounting Standard 32; and
(b) a commodity taken into account in terms of IFRS at fair value less cost to sell in pro t or loss in the statement of comprehensive income;
‘ nancial instrument’ . . .
[De nition of ‘ nancial instrument’ deleted by s. 43 (1) (b)
of Act 43 of 2014 – date of commencement deemed to have been 1 January 2014; the deletion applies iro years of assessment ending on or after that date.]
‘ nancial liability’ means a nancial liability de ned in and within the scope of International Accounting Standard 32 of IFRS or any International Accounting Standard that replaces International Accounting Standard 32;
‘ nancial reporting value’, in relation to a nancial asset or a nancial liability, means the value, as determined for the purposes of nancial reporting pursuant to IFRS, of that nancial asset or nancial liability;
‘post-realisation years’, in relation to a covered person, means—
(a) the year of assessment immediately succeeding the
realisation year;
(b) the year of assessment immediately succeeding the
year of assessment contemplated in paragraph (a);
and
(c) the year of assessment immediately succeeding the
year of assessment contemplated in paragraph (b);
‘realisation year’, in relation to a person, means—
(a) where that person is a covered person, the year of assessment of that person immediately preceding the year of assessment ending on or after 1 January 2014; or
(b) where that person becomes a covered person during any year of assessment ending after 1 January 2014, the year of assessment of that person that precedes the rst year of assessment of that person in which that person becomes a covered person;
‘tax base’ means tax base as de ned in International Accounting Standard 12 of IFRS or any International Accounting Standard replacing International Accounting Standard 12.
(2) Subject to subsection (4), there must be included in or deducted from the income, as the case may be, of any covered person for any year of assessment all amounts in respect of nancial assets and nancial liabilities of that covered person that are recognised in pro t or loss in the statement of comprehensive income in respect of nancial
(c)
any consideration paid by the government, that public entity or that listed company in respect of the use of the asset held by the trust is deemed to be interest as contemplated in paragraph (a) of the de nition of ‘interest’ in section 24J (1).
[Para. (c) substituted by s. 45 (1) (f) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 January 2016; the substituted paragraph applies iro years of assessment commencing on or after that date.]
Prelex
Wording of paras. (a), (b) and (c) in force until 1 January 2016
(a) the trust is deemed not to have acquired the asset
from the government of the Republic or the public entity that is listed in Schedule 2 to the Public Finance Management Act under the sharia arrangement;
(b) the government or that public entity is deemed not to have disposed of or reacquired the asset; and
(c) any consideration paid by the government or that
public entity in respect of the use of the asset held by the trust is deemed to be interest as de ned in section 24J (1).
[Sub-s. (7) added by s. 54 (1) (g) of Act 24 of 2011 (date of commencement: 1 January 2013) and substituted by
s. 42 (1) (b) of Act 43 of 2014 – date of commencement: 1 April 2015.]
[S. 24JA inserted by s. 48 (1) of Act 7 of 2010 – date of commencement: 1 January 2013.]
24JB Taxation in respect of nancial assets and liabilities of certain persons
[Heading substituted by s. 43 (1) (a) of Act 43 of 2014 – date of commencement deemed to have been 1 January 2014; the substitution applies iro years of assessment ending on or after that date.]
(1) For the purposes of this section—
‘covered person’ means—
(a) any authorised user as de ned in section 1 of the
Financial Markets Act that is a company; (b) the South African Reserve Bank;
(c) any—
(i) bank;
200
SAIT CompendIum oF TAx LegISLATIon VoLume 1