Page 282 - SAIT Compendium 2016 Volume1

s 56
INCOME TAX ACT 58 OF 1962 s 61
paragraph shall be an amount which bears to R10 000 the same ratio as that year of assessment bears to 12 months.
[Para. (a) substituted by s. 23 (b) of Act 96 of 1981, amended by s. 31 (1) (b) of Act 94 of 1983, substituted by s. 26 (d) of Act 90 of 1988 and amended by s. 24 (1) (a) of Act 30 of 2002, by s. 2 (2) (b) of Act 8 of 2007 and by s. 1 (2) (c) of Act 3 of 2008.]
(b) so much of the sum of the values of all property disposed of under donations by a donor who is a natural person as does not during any year of assessment exceed R100 000;
[Para. (b) amended by s. 13 (1) of Act 101 of 1978 and by s. 31 (1) (c) of Act 94 of 1983, substituted by s. 26 (d) of Act 90 of 1988 and by s. 18 (1) (b) of Act 36 of 1996 and amended by s. 24 (1) (b) of Act 30 of 2002, by s. 27 (1) of Act 9 of 2006, by s. 2 (2) (b) of Act 8 of 2007 and by s. 1 (2) (c) of Act 3 of 2008.]
(c) so much of any bona de contribution made by the donor towards the maintenance of any person as the Commissioner considers to be reasonable.
57 Disposals by companies under donations at the instance of any person
If—
(a) any property is disposed of by any company at the
instance of any person; and
(b) that disposal would have been treated as a donation
had that disposal been made by that person,
that property must for the purposes of this Part be deemed to be disposed of under a donation by that person.
[S. 57 amended by s. 22 of Act 88 of 1965 and by s. 27 of Act 90 of 1988 and substituted by s. 26 of Act 21 of 1995 and by s. 73 (1) of Act 24 of 2011 – date of commencement: 1 April 2012.]
57A Donations by spouses married in community of property
For the purposes of this Part, in the case of spouses married in community of property, where any property is disposed of in terms of a donation by one of the spouses and—
(a) such property falls within the joint estate of the spouses, such donation shall be deemed to have been made in equal shares by each spouse; and
(b) such property was excluded from the joint estate of the spouses, such donation shall be deemed to have been made solely by the spouse making the donation.
[S. 57A inserted by s. 27 of Act 21 of 1995.]
58 Property disposed of under certain transactions deemed to have been disposed of under a donation
(1) Where any property has been disposed of for a consideration which, in the opinion of the Commissioner, is not an adequate consideration that property shall for the purposes of this Part be deemed to have been disposed of under a donation: Provided that in the determination of the value of such property a reduction shall be made of an amount equal to the value of the said consideration.
(2) Where a person disposes of a restricted equity instrument, as de ned in section 8C, under the circumstances contemplated in section 8C (5) (a) or (b), that restricted equity instrument shall for the purposes of this Part be deemed to have been donated by that person at the time that it is deemed to vest for the purposes of section 8C and to have a value equal to the fair market value of that instrument at that time: Provided that in the determination of the value of that restricted equity
instrument a reduction shall be made of an amount equal to the value of any consideration in respect of that donation. [Sub-s. (2) added by s. 39 (b) of Act 32 of 2004 and amended by s. 46 of Act 31 of 2005.]
59 Persons liable for the tax
The person liable for donations tax shall be the donor: Provided that if the donor fails to pay the tax within the period prescribed in subsection (1) of section sixty the donor and the donee shall be jointly and severally liable for the tax.
60 Payment and assessment of the tax
(1) Donations tax shall be paid to the Commissioner by the end of the month following the month during which a donation takes effect or such longer period as the Commissioner may allow from the date upon which the donation in question takes effect.
[Sub-s. (1) substituted by s. 39 of Act 85 of 1974, by s. 46 of Act 60 of 2001 and by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(2) Where a donor has during the year of assessment disposed of property under more than one donation in respect of which an exemption may be applicable under the provisions of section 56 (2) (a) or (b), the amount to be exempted in respect of any such donation shall be calculated according to the order in which such donations took effect.
[Sub-s. (2) substituted by s. 28 of Act 90 of 1988.]
(3) Where a donor has disposed of property under more than one donation on the same date those donations shall for the purpose of determining the tax payable in respect of each donation be deemed to have taken effect—
(a) in such order as the donor may elect; or
(b) if the donor fails to make an election within
fourteen days after having been called upon by the Commissioner to do so, in such order as the Commissioner may determine.
(4) The payment of the tax in terms of subsection (1) shall be accompanied by a return.
[Sub-s. (4) substituted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(5) The Commissioner may at any time assess either the donor or the donee or both the donor and the donee for the amount of donations tax payable or, where the Commissioner is satis ed that the tax payable under this Part has not been paid in full, for the difference between the amount of the tax payable and the amount paid, but the payment by either of the said parties of the amount payable under such assessment shall discharge the joint obligation.
61 Extension of scope of certain provisions of Act for purposes of donations tax
For the purposes of the donations tax—
(a) any reference in paragraph (a) or (e) of the de nition
of ‘representative taxpayer’ in section 1 to the income of any person or to the gross income received by or accrued to or in favour of any person shall be deemed to include a reference to property disposed of by any person under a donation or to the value of such property, as the context may require;
[Para. (a) substituted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(b) and (c) . . .
[Paras. (b) and (c) deleted by s. 271 of Act 28 of 2011 –
date of commencement: 1 October 2012.]
(d) the reference in paragraphs (b) and (c) of the de nition of ‘representative taxpayer’ in section 1 to the income under the management, disposition or control of an agent or to income which is the subject
274 SAIT CompendIum oF TAx LegISLATIon VoLume 1