Page 247 - SAIT Compendium 2016 Volume1

s 37D INCOME TAX ACT 58 OF 1962 s 37H
land exceeds the expenditure contemplated in
paragraph (a).
(3) If a person retains a right of use of the declared land,
the deduction to be allowed in terms of this section must be limited to an amount that bears the amount determined as contemplated in subsection (2) the same ratio as the market value of the declared land subject to the right of use bears to the market value of the declared land had that declared land not been subject to that right use.
(4) The deductions which may be allowed in terms of this section in respect of declared land must not in aggregate exceed the expenditure incurred as referred to in subsection (2) (a) or the amount referred to in symbol ‘A’ under subsection (2) (b), as the case may be.
(5) If the agreement in respect of which the land that becomes declared land is terminated by the person with which the agreement is entered into, an amount equal to the aggregate of the deductions allowed in terms of this section in the ve years of assessment preceding the termination must be included in the income of that person in the year of assessment that the agreement is terminated.
[S. 37D inserted by s. 27 of Act 101 of 1990, repealed by s. 50 of Act 35 of 2007 and inserted by s. 53 (1) of Act 43 of 2014 – date of commencement: 1 March 2015; the section applies iro years of assessment commencing on or after that date.]
37E . . .
[S. 37E inserted by s. 3 (1) of Act 136 of 1991, amended by s. 26 (1) of Act 141 of 1992, substituted by s. 30 (1) of Act 113 of 1993, amended by s. 41 of Act 36 of 1996 and repealed by s. 29 of Act 8 of 2007.]
(b)
(iii) the number of persons employed in the undertaking;
(iv) the nature and extent of other income derived by the proprietor or partners; and
(v) any other feature which, in the opinion of the said Minister, indicates that an undertaking should be regarded as a small business undertaking;
provide for the variation of any provision of this Act relating to the determination of the taxable income derived from a small business undertaking, including—
(i) the determination of taxable income having regard only to amounts actually received or expended;
(ii) any variation in the manner in which the values of trading stock are taken into account;
(iii) the manner in which expenditure of a capital nature incurred is to be treated; and
(iv) any other provision which, save in so far as the timing of the receipt or accrual of income or the incurral of expenditure is concerned, will not result in a material variation in the determination of the taxable income derived by the undertaking over a period of time;
provide for the exemption from, or extension of time limits in, any provision of this Act relating to the preparation and submission of documents, accounts, returns or payments;
37F Determination of taxable income derived by persons previously assessable under certain other laws
(d) make such other provision as in the opinion of the said Minister will facilitate the carrying on of small business undertakings.
[S. 37G inserted by s. 24 (1) of Act 21 of 1995.]
37H . . .
[S. 37H inserted by s. 12 (1) of Act 46 of 1996, amended by s. 38 of Act 30 of 1998, by s. 36 (1) of Act 12 of 2004 and by s. 271 of Act 28 of 2011 and repealed by s. 67 (1) of Act 22 of 2012 – this repeal came into operation as from the commencement of years of assessment commencing on or after 1 January 2013.]
Part IA
Withholding tax on interest (ss. 37I–370)
[NB: Notes (by Juta editors) on Part IA of Chapter II of
Act 58 of 1962:
(1) A Part IA (ss. 37I to 37M inclusive) was inserted by s. 58 (1) of the Taxation Laws Amendment Act 7 of 2010, a provision that would have come into operation on 1 January 2013. Section 37J was subsequently amended, a s. 37JA was inserted, ss. 37K and 37L were amended, s. 37M was substituted and a s. 37N was added by ss. 61-66 of the Taxation Laws Amendment Act 24 of 2011, respectively, provisions that would also have come into operation on 1 January 2013. However, this Part IA was retrospectively repealed by s. 68 (1) of Act 22 of 2012 wef 31 December 2012.
(2) A new Part IA (ss. 37I to 37K inclusive) was inserted by s. 69 (1) of Act 22 of 2012. Sections 37L to 37O inclusive were inserted by s. 11 (1) of Act 21 of 2012 (date of commencement of both s. 69 (1) of Act 22 of 2012 and of s. 11 (1) of Act 21 of 2012: 1 July 2013; the new Part IA (ss. 37I to 37O inclusive) applies in respect of—
(a) interest that accrues; or
(b) interest that is paid or that becomes due and payable,
on or after that date.
(3) The new Part IA (ss. 37I to 37K inclusive), as inserted by s. 69 (1) of Act 22 of 2012 wef 1 July 2013, was retrospectively deleted by the repeal of the said s. 69 (1) of Act 22 of 2012, wef 30 June 2013, by s. 199 (1) of Act 31 of 2013. Section 11 (1) of Act 21 of 2012 (inserting ss. 37L to 37O wef 1 July 2013) was likewise retrospectively deleted, also wef 30 June 2013, by s. 66 (1) of Act 44 of 2014.]
Where it is necessary for any rule provided in this Act as to the inclusion in the income of any taxpayer for any year or as to the deduction or set-off of any amount from or against his income for such year, that regard shall be had to anything that has been done or has occurred in or in relation to a previous year of assessment, anything that has in fact been done or has in fact occurred in or in relation to a year of assessment during which the taxpayer was assessable for taxation purposes in terms of any law of a former self-governing territory declared under section 26 of the repealed Self-governing Territories Constitution Act, 1971 (Act 21 of 1971), to be a self-governing territory or of the former Republic of Transkei, Bophuthatswana, Venda or Ciskei for any year of assessment, shall, subject to such adjustments as may in the circumstances be appropriate, for the purposes of applying such rule be taken into account.
[S. 37F inserted by s. 24 (1) of Act 21 of 1995.]
37G Determination of taxable income derived from small business undertakings
(1) The Minister of Finance may make regulations to facilitate compliance with the provisions of this Act by natural persons who carry on business through small business undertakings, whether as sole proprietors or in partnership with other natural persons.
(2) A regulation made under subsection (1) may—
(a) prescribe what shall constitute a small business
undertaking, having regard to— (i) the nature of the undertaking;
(ii) the turnover, taxable income or pro t of the undertaking;
(c)
SAIT CompendIum oF TAx LegISLATIon VoLume 1 239
INCOME TAX ACT – SECTIONS