Page 214 - SAIT Compendium 2016 Volume1

s 25A INCOME TAX ACT 58 OF 1962 s 25BA
income for such period shall be determined at the amount at which such taxpayer’s taxable income would have been determined under the provisions of this Act if such taxpayer had not been married in community of property.
[S. 25A inserted by s. 21 (1) of Act 55 of 1966, amended by s. 271 of Act 28 of 2011 and substituted by s. 49
of Taxation Laws Amendment Act, 2015 – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
(b) the trust, be deemed to be a deduction or allowance which may be made in the determination of the taxable income derived by that trust.
(4) The deduction or allowance contemplated in subsection (3) which is deemed to be made in the determination of the taxable income of a bene ciary of a trust during any year of assessment, shall be limited to so much of the amount deemed to have been received by or accrued to that bene ciary in terms of subsection (1), as is included in the income of that bene ciary during that year of assessment.
(5) The amount by which the sum of the deductions and allowances contemplated in subsection (4) exceeds the amount included in the income of the bene ciary during a year of assessment as contemplated in that subsection—
(a) is deemed to be a deduction or allowance which may
be made in the determination of the taxable income of the trust during that year: Provided that the sum of those deductions and allowances shall be limited to the taxable income of that trust during that year of assessment as calculated before allowing any deduction or allowance under this subsection; or
(b) where the trust is not subject to tax in the Republic, must be carried forward and be deemed to be a deduction or allowance which may be made in the determination of the taxable income derived by that bene ciary by way of amounts referred to in subsection (1) during the immediately succeeding year of assessment.
(6) The amount by which the sum of the deductions and allowances contemplated in subsection (4) exceeds the sum of the amount included in the income of the bene ciary as contemplated in subsection (4) and the taxable income of the trust as contemplated in subsection (5) (a), must be deemed to be a deduction or allowance for purposes of subsection (3), which may be made in the determination of the taxable income derived by that bene ciary by way of any amount referred to in subsection (1) during the immediately succeeding year of assessment.
(7) Subsections (4), (5) and (6) do not apply in respect of any amount which is deemed to have accrued to any bene ciary in terms of subsection (1), where that bene ciary is not subject to tax in the Republic on that amount.
[S. 25B inserted by s. 27 (1) of Act 129 of 1991, amended by s. 22 of Act 141 of 1992, by s. 36 (1) of Act 30 of 1998, by s. 32 (1) of Act 59 of 2000 and by s. 14 (1) of Act 19 of 2001 and substituted by s. 27 (1) of Act 32 of 2004.]
25BA Amounts received by or accrued to portfolios of collective investment schemes in securities and holders of participatory interests in portfolios
[Heading substituted by s. 49 (1) (a) of Act 7 of 2010.] (1) Any amount, other than an amount of a capital nature, received by or accrued to any portfolio of a collective investment scheme, other than a portfolio of a
collective investment scheme in property, must—
(a) to the extent that the amount is distributed by that
portfolio—
(i) to any person who is entitled to the distribution
by virtue of the person being a holder of a
participatory interest in that portfolio; and
(ii) not later than 12 months after its accrual to or, in
the case of interest, its receipt by that portfolio;
[Sub-para. (ii) substituted s. 58 (1) (a) of Act 22 of 2012 and by s. 73 (1) (b) of Act 31 of 2013 – date of commencement: 1 January 2014; the substituted subparagraph applies in respect of years of assessment commencing on or after that date.]
Prelex
Wording of s. 25A in force until date of promulgation of Taxation Laws Amendment Act, 2015
25A Determination of taxable incomes of permanently separated spouses
(1) Where during any period of assessment any taxpayer who is married in community of property has lived apart from his spouse in circumstances which, in the opinion of the Commissioner, indicate that the separation is likely to be permanent, his taxable income for such period shall be determined at such amount as the Commissioner, having regard to the circumstances of the case, determines to be the amount at which such taxpayer’s taxable income would have been determined under the provisions of this Act if such taxpayer had not been married in community of property.
(2) . . .
[Sub-s. (2) deleted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
25B Income of trusts and bene ciaries of trusts
(1) Any amount received by or accrued to or in favour of any person during any year of assessment in his or her capacity as the trustee of a trust, shall, subject to the provisions of section 7, to the extent to which that amount has been derived for the immediate or future bene t of any ascertained bene ciary who has a vested right to that amount during that year, be deemed to be an amount which has accrued to that bene ciary, and to the extent to which that amount is not so derived, be deemed to be an amount which has accrued to that trust.
(2) Where a bene ciary has acquired a vested right to any amount referred to in subsection (1) in consequence of the exercise by the trustee of a discretion vested in him or her in terms of the relevant deed of trust, agreement or will of a deceased person, that amount shall for the purposes of that subsection be deemed to have been derived for the bene t of that bene ciary.
(2A) Where during any year of assessment any resident acquires any vested right to any amount representing capital of any trust which is not a resident, that amount must be included in the income of that resident in that year, if—
(a) that capital arose from any receipts and accruals of such trust which would have constituted income if such trust had been a resident, in any previous year of assessment during which that resident had a contingent right to that amount; and
(b) that amount has not been subject to tax in the Republic in terms of this Act.
(3) Any deduction or allowance which may be made under the provisions of this Act in the determination of the taxable income derived by way of any amount referred to in subsection (1), must, to the extent to which that amount is under that subsection deemed to be an amount which has accrued to—
(a) a bene ciary, be deemed to be a deduction or allowance which may be made in the determination of the taxable income derived by that bene ciary; and
206 SAIT CompendIum oF TAx LegISLATIon VoLume 1