Page 245 - SAIT Compendium 2016 Volume1

s 37A INCOME TAX ACT 58 OF 1962 s 37B
the rst date that company or trust held that other
property; and
(b) the deemed amount contemplated in paragraph
(a) shall be included in the income of the person contemplated in subsection (1) (d) for the year of assessment of that person during which that contravention occurred to the extent that other property is (directly or indirectly) derived from cash paid by that person to that company or trust.
[Para. (b) substituted by s. 28 (1) (j) of Act 8 of 2007.] (7) If the company or trust contemplated in this section contravenes any provision of subsection (1) (a) during any year of assessment by distributing property from that
company or trust for a purpose other than—
(a) rehabilitation upon premature closure;
(b) decommissioning and nal closure;
(c) post closure coverage of any latent or residual
environmental impacts; or
(d) transfer to another company, trust, or account
established for the purposes contemplated in
subsection (1) (a),
an amount equal to the market value of property that was so distributed must for purposes of this Act be deemed to be an amount of taxable income which accrued to such company or trust during the year of assessment in which that distribution occurred.
[Sub-s. (7) amended by s. 28 (1) (k) of Act 8 of 2007 and substituted by s. 47 of Act 35 of 2007.]
(8) Where the Commissioner is satis ed that a company or trust contemplated in this section has contravened any provision of this section during any year of assessment, the Commissioner may—
‘environmental waste disposal asset’ means any air, water, and solid waste disposal site, dam, dump, reservoir, or other structure of a similar nature, or any improvement thereto, if the structure is—
(a) of a permanent nature;
(b) utilised in the course of a taxpayer’s trade in a process
that is ancillary to any process of manufacture or any other process which, in the opinion of the Commissioner, is of a similar nature; and
(c) required by any law of the Republic for purposes of complying with measures that protect the environment.
[De nition of ‘environmental waste disposal asset’ substituted by s. 44 (a) of Act 17 of 2009.]
(2) There shall be allowed to be deducted from the income of the taxpayer, in respect of any year of assessment, an allowance equal to—
(a) in the case of a new and unused environmental
treatment and recycling asset owned by the taxpayer or acquired by the taxpayer as purchaser in terms of an agreement contemplated in paragraph (a) of the de nition of an ‘instalment credit agreement’ in section 1 of the Value-Added Tax Act, 40 per cent of the cost to the taxpayer to acquire the asset in the year of assessment that it is brought into use for the rst time by that taxpayer, and 20 per cent in each succeeding year of assessment; and
[Para. (a) substituted by s. 66 (1) of Act 22 of 2012 and by s. 85 of Act 31 of 2013 – date of commencement: 12 December 2013.]
(b) in the case of a new and unused environmental waste disposal asset owned by the taxpayer or acquired by the taxpayer as purchaser in terms of an agreement contemplated in paragraph (a) of the de nition of an ‘instalment credit agreement’ in section 1 of the Value-Added Tax Act, ve per cent of the cost to the taxpayer to acquire the asset in the year of assessment that it is brought into use for the rst time by that taxpayer, and ve per cent in each succeeding year of assessment.
[Para. (b) substituted by s. 66 (1) of Act 22 of 2012 and by s. 85 of Act 31 of 2013 – date of commencement: 12 December 2013.]
[Sub-s. (2) substituted by s. 44 (b) of Act 17 of 2009.] (3) For the purposes of this section, the cost to a taxpayer of any asset shall be deemed to be the lesser of the actual cost to the taxpayer or the cost which a person would, if that person had acquired such asset under a cash transaction concluded at arm’s length on the date on which the transaction for the acquisition was in fact concluded, have incurred in respect of the direct cost of
the acquisition.
(4) Where any asset in respect of which any deduction
is claimed in terms of this section was during any previous year of assessment used by the taxpayer for the purposes of any trade carried on by such taxpayer, the receipts and accruals of which were not included in the income of such taxpayer during such year, any deduction which could have been allowed in terms of this section during such year or any subsequent year in which such asset was used by the taxpayer shall for the purposes of this section be deemed to have been allowed during such previous year or years as if the receipts and accruals of such trade had been included in the income of such taxpayer.
[Sub-s. (4) substituted by s. 45 (1) of Act 60 of 2008.]
(5) No deduction shall be allowed under this section in respect of any asset that has been disposed of by the taxpayer during any previous year of assessment.
(a) (b)
include an amount equal to twice the market value of all of the property held in that company or trust on the date of that contravention as taxable income; and include the amount contemplated in paragraph (a) in the income of the person contemplated in subsection (1) (d) for the year of assessment of that person during which the Commissioner is satis ed the contravention occurred to the extent that property is (directly or indirectly) derived from cash paid by that person to that company or trust:
[Para. (b) substituted by s. 28 (1) (l) of Act 8 of 2007.] Provided that the Commissioner may reduce the amount of taxable income contemplated under this subsection as the Commissioner may think t.
[S. 37A inserted by s. 27 of Act 89 of 1969, amended by s. 18 (1) of Act 52 of 1970, by s. 22 (1) of Act 88 of 1971 and by s. 30 (1) of Act 85 of 1974, repealed by s. 26 of Act 94 of 1983 and inserted by s. 27 of Act 20 of 2006.]
37B Deductions in respect of environmental expenditure
(1) For purposes of this section—
‘environmental treatment and recycling asset’ means any air, water, and solid waste treatment and recycling plant or pollution control and monitoring equipment (and any improvement to the plant or equipment) if the plant or equipment is—
(a) utilised in the course of a taxpayer’s trade in a process
that is ancillary to any process of manufacture or any other process which, in the opinion of the Commissioner, is of a similar nature; and
(b) required by any law of the Republic for purposes of complying with measures that protect the environment; and
[De nition of ‘environmental treatment and recycling asset’ substituted by s. 44 (a) of Act 17 of 2009.]
SAIT CompendIum oF TAx LegISLATIon VoLume 1 237
INCOME TAX ACT – SECTIONS