Page 227 - SAIT Compendium 2016 Volume1

s 29A INCOME TAX ACT 58 OF 1962 s 29A
[Item (C) substituted by s. 53 (1) (d) of Taxation Laws Amendment Act, 2015 (‘of item (D)’ inserted) – date of commencement deemed to have been 1 January 2013; substition applies iro years of assessment commencing on or after that date.]
(D) ‘Z’ represents an amount equal to the amount represented by X in the formula, plus—
(AA) the aggregate amount of all
dividends that are exempt from normal tax and that are received in respect of such fund during such year;
(BB) the aggregate amount of all foreign dividends received in respect of such fund during such year, less any amount of that aggregate amount that is included in taxable income;
(CC) any portion of the aggregate capital gain in respect of such fund and in respect of such year that is not, by virtue of paragraph 10 of the Eighth Schedule, included in the taxable income in respect of such fund and in respect of such year; and
(DD) the difference between the market value as de ned in section 29B and the expenditure incurred in respect of any asset held at the end of the year of assessment, reduced by the amount determined in terms of this subparagraph for the immediately preceding year of assessment: Provided that if the resultant amount is negative the amount shall be deemed to be nil; and
[Words in subsection (11) (a) (ii) following item (bb) substituted by s. 62 (1) (d) of Act 22 of 2012 (date of commencement: 1 January 2013), amended by s. 77 (1) (d), (e) and (f) of Act 31 of 2013 and substituted by s. 47 (1) (n) of Act 43 of 2014 – date of commencement deemed to have been 1 January 2013 as well; the retrospective substitution applies iro years of assessment commencing on or after that date.]
[Sub-para. (ii) amended by s. 15 (1) (e) and (f) of Act 5 of 2001 and substituted by s. 62 (1) (d) of Act 22 of 2012.]
(iii) such percentage, determined in accordance with the formula contemplated in subparagraph (ii), of 30 per cent of the amount transferred from the policyholder fund in terms of subsection (7) (a), to the extent that the amount of such transfer is required to be included in the income of the corporate fund during such year of assessment in terms of paragraph (d) (i) of this subsection: Provided that the amount of the deduction in terms of this subparagraph shall not exceed the balance of the amount of the income of the policyholder fund remaining after taking into account any other amounts allowed to be deducted from the income of such fund in terms of this section;
[Words in subsection (11) (a) (iii) preceding the proviso substituted by s. 62 (1) (e) of Act 22 of 2012 – date of commencement: 1 January 2013; this substitution applies in respect of years of assessment commencing on or after that date.]
[Para. (a) amended by s. 15 (1) (c) and (d) of Act 5 of 2001.] (b) . . .
(bA) a deduction is allowed in determining the taxable income of the risk policy fund of an amount equal to the amount of the transfer from the risk policy fund to the corporate fund in respect of that year of assessment, but not exceeding the taxable income of the risk policy fund before deducting an amount in terms of this paragraph;
[Para. (bA) inserted by s. 47 (1) (o) of Act 43 of 2014 – date of commencement: 1 January 2016; inserted paragraph applies iro years of assessment commencing on or after that date.]
(c) . . .
[Para. (c) deleted by s. 36 of Act 59 of 2000.]
(d) any amount required to be transferred—
(i) to the corporate fund in terms of the provisions
of subsection (7) (a) shall be included in the
income of the corporate fund; and
(ii) from the corporate fund in terms of the provisions
of subsection (7) (b) shall not be deducted from
the income of the corporate fund,
for purposes of determining the taxable income of such fund for the year of assessment in respect of which the value of liabilities in relation to its policyholder funds or risk policy fund was redetermined in terms of that subsection: Provided that where any amount is transferred from the corporate fund to any policyholder fund or risk policy fund as contemplated in subparagraph (ii), any subsequent transfers from the policyholder fund or risk policy fund to the corporate fund of any amounts which in the aggregate do not exceed the total amount of such transfer, shall not be included in the income of the corporate fund in terms of the provisions of subparagraph (i) of this paragraph;
[Words in sub-s. (11) following para. (d) (ii) substituted by s. 47 (1) (p) of Act 43 of 2014 – date of commencement: 1 January 2016; inserted paragraph applies iro years of assessment commencing on or after that date.]
Prelex
Words in sub-s. (11) following para. (d) (ii) in force until 1 January 2016
for the purposes of determining the taxable income of such fund for the year of assessment in respect of which the value of liabilities in relation to its policyholder funds was redetermined in terms of that subsection: Provided that where any amount is transferred from the corporate fund to any policyholder fund as contemplated in subparagraph (ii), any subsequent transfers from the policyholder fund to the corporate fund of any amounts which in the aggregate do not exceed the total amount of such transfer, shall not be included in the income of the corporate fund in terms of the provisions of subparagraph (i) of this paragraph;
[Para. (b) deleted by s. 30 of Act 74 of 2002.]
SAIT CompendIum oF TAx LegISLATIon VoLume 1
(e) subject to the provisions of paragraphs (a) (iii) and (bA), no amount transferred to or from the corporate fund in terms of the provisions of subsection (7) shall be deducted from or included in the income of the policyholder fund or risk policy fund from or to which such amount was transferred, as the case may be;
[Para. (e) has been substituted by s. 47 (1) (q) of Act 43 of
2014 – date of commencement: 1 January 2016; inserted paragraph applies iro years of assessment commencing on or after that date.]
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INCOME TAX ACT – SECTIONS