Page 213 - SAIT Compendium 2016 Volume1

s 24P
INCOME TAX ACT 58 OF 1962 s 25A
(5) A deceased estate must, other than for the purposes of section 6, section 6A and section 6B, be treated as if that estate were a natural person.
(6) Where—
(a) the tax determined in terms of this Act, which relates
to the taxable capital gain derived by a deceased person from assets disposed of by that person as contemplated in section 9HA, exceeds 50 per cent of the net value of the estate of that person, as determined in terms of section 4 of the Estate Duty Act for purposes of that Act, before taking into account the amount of that tax so determined; and
(b) the executor of the estate is required to dispose of any asset of the estate for purposes of paying the amount of the tax contemplated in paragraph (a),
any heir or legatee of the estate who would have been entitled to that asset contemplated in paragraph (b) had there been no liability for tax, may elect that that asset be distributed to that heir or legatee if the amount of tax which exceeds 50 per cent of that net value be paid by that heir or legatee within a period of three years after the date that the estate has become distributable in terms of section 35 (12) of the Administration of Estates Act, 1965 (Act 66 of 1965).
(7) Any amount of tax payable by an heir or legatee as contemplated in subsection (6), becomes a debt due to the state and must be treated as an amount of tax chargeable in terms of this Act which is due by that person.
[S. 25 substituted by s. 22 of Act 113 of 1993 and by s. 48 (1) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 March 2016; the substituted section applies iro persons who die on or after that date.]
(2) In determining the amount of the deduction under subsection (1) the Commissioner must have regard to— (a) the estimated cost of those repairs; and
(b) the date on which those costs are likely to be
incurred.
(3) The amount of the deduction allowed to a person under subsection (1) in respect of any year of assessment must be included in the income of that person in the following year of assessment.
[S. 24P inserted by s. 44 (1) of Act 43 of 2014 – date of commencement deemed to have been 12 December 2013.]
25 Taxation of deceased estates
(1) Any—
(a) income received by or accrued to or in favour of any
person in his or her capacity as the executor of the
estate of a deceased person; and
(b) amount received or accrued as contemplated in
paragraph (a) which would have been income in the hands of that deceased person had that amount been received by or accrued to or in favour of that deceased person during his or her lifetime,
must be treated as income of the deceased estate of that deceased person.
(2) Where the deceased estate of a person acquires an asset from that person, that deceased estate must, if that asset is an asset—
(a) other than an asset contemplated in section 9HA (2),
be treated as having acquired that asset for an amount of expenditure incurred equal to the market value of that asset as at the date of the death of that deceased person; and
(b) contemplated in section 9HA (2), be treated as having acquired that asset for an amount of expenditure incurred equal to the amount contemplated in section 9HA (2) (b).
(3) Where the deceased estate of a person disposes of an asset to an heir or legatee of that person—
(a) that deceased estate must be treated as having
disposed of that asset for an amount received or accrued equal to the amount of expenditure incurred by the deceased estate in respect of that asset; and
(b) the heir or legatee must be treated as having acquired that asset for an amount of expenditure incurred equal to the expenditure incurred by the deceased estate in respect of that asset.
(4) Where the deceased estate of a person disposes of an asset contemplated in section 9HA (2) to the surviving spouse of that person, that spouse must be treated as having—
(a) acquired that asset on the date that the deceased
person acquired that asset; and (b) incurred—
(i) the expenditure incurred by that deceased person in respect of that asset as contemplated in section 9HA (2) (b); and
(ii) any expenditure, other than the expenditure contemplated in subsection (2) (b), incurred by that deceased estate in respect of that asset,
on the same date and in the same currency in which it was incurred by the deceased person or the deceased estate, as the case may be; and
(c) used that asset in the same manner as the manner in which that asset had been used by the deceased person and the deceased estate.
25A Determination of taxable incomes of permanently separated spouses
Where during any period of assessment any taxpayer who is married in community of property has lived apart from his or her spouse in circumstances which indicate that the separation is likely to be permanent, his or her taxable
Prelex
Wording of s. 25 in force until 1 March 2016
25 Income of bene ciaries and estates of deceased persons
(1) Any income received by or accrued to or in favour of any person in his capacity as the executor of the estate of a deceased person, and any amount so received or accrued which would have been income in the hands of the deceased person had it been received by or accrued to or in favour of such deceased person during his lifetime, shall, to the extent to which such income or amount has been derived for the immediate or future bene t of any ascertained heir or legatee of such deceased person, be deemed to be income received by or accrued to such heir or legatee, and shall, to the extent to which such income or amount is not so derived, be deemed to be income of the estate of such deceased person.
(2) Any deduction or allowance which may be granted under the provisions of this Act in the determination of the taxable income derived by way of any income or amount referred to in subsection (1) shall, to the extent to which such income or amount is under the provisions of that subsection deemed to be income which has accrued to an heir or legatee or the estate of such deceased person, be deemed to be a deduction or allowance which may be made in the determination of the taxable income derived by such heir or legatee or such estate, as the case may be.
SAIT CompendIum oF TAx LegISLATIon VoLume 1 205
INCOME TAX ACT – SECTIONS