Page 242 - SAIT Compendium 2016 Volume1

s 36
INCOME TAX ACT 58 OF 1962 s 36
(ii)
before the set-off in terms of section 20 (1) (a) of any balance of assessed loss which is attributable to any deduction made under section 15 (a) in relation to such mine; and where the mine concerned is a mine to which subsection (7G) applies, an amount equal to that portion of the capital expenditure of such mine which has been set off against the taxable income of another mine or mines during such year of assessment;
(vi) motor vehicles intended for the private or partly private use of the taxpayer’s employees:
Provided that—
(aa)such expenditure shall for the purposes of
this de nition be deemed to be payable in ten successive equal annual instalments or, where subparagraph (vi) is applicable, ve successive equal annual instalments, the rst of which shall be deemed to be payable on the date on which payment of the relevant expenditure became due and the succeeding instalments on the appropriate anniversaries of that date, but if any such anniversary falls on a date after the asset to which such expenditure relates has been sold, disposed of or scrapped by the taxpayer, the instalment of such expenditure so deemed to be payable on such anniversary shall be disregarded;
[Para. (aa) substituted by s. 44 (1) (b) of Act 60 of 2008 and by s. 43 (1) (b) of Act 17 of 2009.]
(bb)where it is shown to the satisfaction of the Commissioner that the life of the relevant mine will extend over a period which is shorter than the period during which the said instalments are so deemed to be payable, the Commissioner may reduce the number of instalments relating to the expenditure not yet redeemed and the amount of each such instalment shall be determined by dividing the amount of the expenditure remaining to be redeemed by the number of years in the remainder of the life of the mine;
(cc) where any asset the expenditure in respect of which has quali ed as capital expenditure under this paragraph is sold, disposed of or scrapped by the taxpayer during any year of assessment, an allowance shall be made in respect of that asset, equal to the amount by which the full amount of the expenditure incurred by the taxpayer in respect of that asset, as contemplated in this paragraph, exceeds the total amount of all the instalments of such expenditure which are deemed by paragraph (aa) of this proviso to be payable before the asset was sold, disposed of or scrapped, and in such case the amount of the said allowance shall be deemed to be the nal instalment of the said expenditure made on the date on which the asset was sold, disposed of or scrapped;
(dd) where a taxpayer completes an improvement as contemplated in section 12N in respect of the items contemplated in subparagraph (i), (ii), (iii), (iv) or (v), the expenditure incurred by the taxpayer to complete the improvement shall be deemed to be expenditure for the purposes of this section;
[Para. (dd) added by s. 44 (1) (c) of Act 60 of 2008, deleted by s. 43 (1) (c) of Act 17 of 2009 and added by s. 57 (1) of Act 7 of 2010.]
(dd)the sum of the expenditure contemplated in this paragraph shall be reduced by the sum of the amounts received or accrued during the said relevant period from disposals of assets contemplated in the de nition of ‘capital expenditure incurred’;
(ee) and (ff) . . .
(gg) notwithstanding anything to the contrary in this
paragraph, the instalment of expenditure which is in terms of paragraph (d) deemed to be payable during a year of assessment shall qualify for the calculation of the amount under this paragraph as from the rst day of the year of assessment following the said year of assessment;
(hh) where a sale, transfer, lease or cession of any mining property, as contemplated in section 37, occurs which results in the disposal of an asset in respect of which the provisions of paragraph (d) are applicable, so much of the effective value as relates to the asset so disposed of shall qualify for the calculation of the amount under this paragraph as from the rst day of the year of assessment following the year of assessment during which the agreement of sale, transfer, lease or cession of that mining property takes effect;
[Para. (hh) substituted by s. 41 (1) of Act 60 of 2001.]
[Para. (c) amended by s. 14 (1) (d) of Act 76 of 1968, substituted by s. 28 (1) (c) of Act 85 of 1974, amended by s. 20 (1) of Act 104 of 1980, substituted by s. 14 (b) of Act 70 of 1989 and amended by s. 26 (e) of Act 101 of 1990, by s. 24 (e) and (g) of Act 141 of 1992, by s. 26 (b) and (d) of Act 20 of 2006, by s. 46 (a) of Act 35 of 2007 and by s. 23 (a) and (c) of Act 3 of 2008.]
(d) expenditure (excluding the cost of land, surface rights and servitudes) the payment of which has become due on or after 1 July 1989 in respect of the acquisition, erection, construction, improvement or laying out of—
(i)housing for residential occupation by the taxpayer’s employees (other than housing intended for sale) and furniture for such housing;
[Sub-para. (i) substituted by s. 44 (1) (a) of Act 60 of 2008 and by s. 43 (1) (a) of Act 17 of 2009.]
(iA) . . .
[Sub-para. (iA) inserted by s. 44 (1) (b) of Act 60 of 2008 and omitted by s. 43 (1) (a) of Act 17 of 2009.]
(ii) (iii)
(iv) (v)
infrastructure in respect of residential areas developed for sale to the taxpayer’s employees; any hospital, school, shop or similar amenity (including furniture and equipment) owned and operated by the taxpayer mainly for the use of his employees or any garage or carport for any motor vehicle referred to in subparagraph (vi); recreational buildings and facilities owned and operated by the taxpayer mainly for the use of his employees;
any railway line or system having a similar function for the transport of minerals from the mine to the nearest public transport system or outlet;
(e)
[Para. (d) added by s. 14 (c) of Act 70 of 1989.] where that trade constitutes mining, any expenditure incurred in terms of a mining right pursuant to the Mineral and Petroleum Resources Development Act other than in respect of infrastructure or environmental rehabilitation; [and]
(f)
[Para. (e) added by s. 44 (1) (d) of Act 60 of 2008 and substituted by s. 43 (1) (d) of Act 17 of 2009 and by s. 83 (c) of Act 31 of 2013 – date of commencement: 12 December 2013.]
in respect of the disposal of any low-cost residential unit of the taxpayer, an amount equal to 10 per cent of any amount owing to the taxpayer or an ‘associated
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SAIT CompendIum oF TAx LegISLATIon VoLume 1