Page 225 - SAIT Compendium 2016 Volume1

s 29A INCOME TAX ACT 58 OF 1962 s 29A
(iii) any annuity contracts entered into by it in respect of which annuities are being paid;
(iv) any policy that is a tax free investment as contemplated in section 12T.
[Sub-para. (iv) added by s. 47 (1) (g) of Act 43 of 2014 – date of commencement: 1 March 2015.]
(b) a fund, to be known as the individual policyholder fund, in which shall be placed assets having a market value equal to the value of liabilities determined in relation to any policy, (other than a policy contemplated in paragraph (a) or (e)) of which the owner is any person other than a company;
[Para. (b) substituted by s. 47 (1) (h) of Act 43 of 2014 – date of commencement: 1 January 2016; substituted paragraph applies iro years of assessment commencing on or after that date.]
(c) a fund, to be known as the company policyholder fund, in which shall be placed assets having a market value equal to the value of liabilities determined in relation to any policy (other than a policy contemplated in paragraph (a) or (e)) of which the owner is a company;
[Para. (c) substituted by s. 47 (1) (h) of Act 43 of 2014 – date of commencement: 1 January 2016; substituted paragraph applies iro years of assessment commencing on or after that date.]
(d) a fund, to be known as a corporate fund in which shall be placed all the assets held by the insurer and all liabilities owned by it, other than assets and liabilities contemplated in paragraphs (a), (b), (c) and (e); and
[Para. (d) substituted by s. 47 (1) (h) of Act 43 of 2014 – date of commencement: 1 January 2016; substituted paragraph applies iro years of assessment commencing on or after that date.]
(b) where paragraph (a) is not applicable and all the bene ciaries in such trust or all such joint owners are persons other than a company, the owner of such policy shall be deemed to be a person other than a company; or
(c) where paragraphs (a) and (b) are not applicable, the owner of such policy shall be deemed to be a company.
(6) An insurer who becomes aware that, in consequence of—
(a) a change of ownership of any policy issued by it;
(b) any change affecting the status of the owner of any
policy; or
(c) an annuity becoming payable in terms of a policy, the assets held by it in relation to such policy should in terms of the provisions of subsection (4) be held in a fund other than the fund in which such assets are actually held, shall forthwith transfer from such last-mentioned fund to such rst-mentioned fund assets having a market value equal to the value of liabilities determined on the date of such transfer in relation to the said policy.
[Sub-s. (6) substituted by s. 47 (1) (j) of Act 43 of 2014 – date of commencement: 1 January 2016; substituted subsection applies iro years of assessment commencing on or after that date.]
Prelex
Wording of sub-s. (6) in force until 1 January 2016
(6) An insurer who becomes aware that, in consequence of—
(a) a change of ownership of any policy issued by it; or (b) any change affecting the status of the owner of any
policy,
the assets held by it in relation to such policy should in terms of the provisions of subsection (4) be held in a policyholder fund other than the policyholder fund in which such assets are actually held, shall forthwith transfer from such lastmentioned fund to such rstmentioned fund assets having a market value equal to the value of liabilities determined on the date of such transfer in relation to the said policy.
Prelex
Wording of paras. (b), (c) and (d) in force until 1 January 2016
(b) a fund, to be known as the individual policyholder
fund, in which shall be placed assets having a market value equal to the value of liabilities determined in relation to any policy (other than a policy contemplated in paragraph (a)) of which the owner is any person other than a company;
(c) a fund, to be known as the company policyholder fund, in which shall be placed assets having a market value equal to the value of liabilities determined in relation to any policy (other than a policy contemplated in paragraph (a)) of which the owner is a company; and
(d) a fund, to be known as the corporate fund, in which shall be placed all the assets (if any) held by the insurer, and all liabilities owed by it, other than those contemplated in paragraphs (a), (b) and (c).
(e) a fund, to be known as a risk policy fund, in which shall be placed assets having a market value equal to the value of liabilities determined in relation to any risk policy.
[Para. (e) added by s. 47 (1) (i) of Act 43 of 2014 – date of commencement: 1 January 2016; paragraph applies iro years of assessment commencing on or after that date.]
(5) For the purposes of subsection (4), where the owner of a policy is the trustee of any trust or where two or more owners jointly own a policy—
(a) if all the bene ciaries in such trust or all such joint
owners are funds, persons or bodies contemplated in subsection (4) (a), the owner of such policy shall be deemed to be such a fund, person or body, as the case may be; or
(7) Every insurer shall within a period of three months after the end of every year of assessment redetermine the value of liabilities in relation to each of its policyholder funds and its risk policy fund as at the last day of that year of assessment, and—
(a) where the market value of the assets actually held by it in any such fund exceeds the value of liabilities in relation to such fund on such last day, it shall within that period transfer from such fund to its corporate fund assets having a market value equal to such excess; or
(b) where the market value of the assets actually held by it in any such fund is less than the value of liabilities in relation to such fund on such last day, it shall within that period transfer from its corporate fund to such fund assets having a market value equal to the shortfall,
and such transfer shall be made with effect from that day and for the purposes of this section be deemed to have been made on such last day.
[Sub-s. (7) amended by s. 62 (1) (b) of Act 22 of 2012 and substituted by s. 47 (1) (k) of Act 43 of 2014 – date of commencement: 1 January 2016; substituted subsection applies iro years of assessment commencing on or after that date.]
SAIT CompendIum oF TAx LegISLATIon VoLume 1
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INCOME TAX ACT – SECTIONS