Page 284 - SAIT Compendium 2016 Volume1

s 62 INCOME TAX ACT 58 OF 1962 s 64B
person, such calculation shall, in the case of a person who is not a natural person, be made over a period of fty years.
(4) If the Commissioner is of the opinion that the amount shown in any return as the fair market value of any property is less than the fair market value of that property, he or she may x the fair market value of that property, and the value so xed is deemed for the purposes of this Part to be the fair market value of such property.
[Sub-s. (4) substituted by s. 7 (1) of Act 32 of 2005 and by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(5) In xing the fair market value of any property in terms of subsection (4), the Commissioner shall have regard inter alia—
(a) to the municipal or divisional council valuation (if
any) of such property;
(b) to any sworn valuation of such property furnished by
or on behalf of the donor or the donee; and
(c) to any valuation of such property made by any competent and disinterested person appointed by the
Commissioner.
63 . . .
[S. 63 substituted by s. 34 of Act 53 of 1999 and by s. 47 of Act 60 of 2001 and repealed by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
64 Rate of donations tax
The rate of the donations tax chargeable under section 54 in respect of the value of any property disposed of under a donation shall be 20 per cent of such value.
[S. 64 substituted by s. 30 of Act 90 of 1988 and amended
by s. 19 (1) of Act 36 of 1996 and by s. 17 of Act 5 of 2001.]
Part VI
[Part VI added by s. 20 of Act 95 of 1967, amended by s. 15 of Act 76 of 1968, by ss. 34 to 36 of Act 89 of 1969, by ss. 20 and 21 of Act 52 of 1970, by s. 26 of Act 88 of 1971, by ss. 19 and 20 of Act 90 of 1972, by ss. 40 to 42 of Act 85 of 1974, by s. 21 of Act 103 of 1976, by s. 22 of Act 113 of 1977, by s. 14 of Act 104 of 1979, by s. 22 of Act 104 of 1980, by s. 24 of Act 96 of 1981, by s. 21 of Act 91 of 1982, by ss. 32 to 34 of Act 94 of 1983, by s. 29 of Act 121 of 1984, by s. 18 of Act 65 of 1986, by ss. 7 and 8 of Act 108 of 1986, by s. 22 (1) of Act 85 of 1987 and by ss. 31 to 36 of Act 90 of 1988, substituted by s. 4 of Act 136 of 1991 and repealed by s. 24 (1) of Act 28 of 1997.]
64A . . .
[S. 64A inserted by s. 4 of Act 136 of 1991, substituted by s. 29 (1) of Act 141 of 1992, amended by s. 33 of Act 113 of 1993, by s. 28 (1) of Act 21 of 1995 and by s. 20 (1) of Act 36 of 1996 and repealed by s. 24 (1) of Act 28 of 1997.]
Part VII
Secondary tax on companies (ss. 64B–64C)
[Part VII inserted by s. 34 (1) of Act 113 of 1993.]
64B Levy and recovery of secondary tax on companies
(1) For the purposes of this Part—
‘affected company’ . . .
[De nition of ‘affected company’ inserted by s. 21 (1) (b)
of Act 36 of 1996 and deleted by s. 36 (1) (a) of Act 74 of 2002.]
‘declared’, in relation to any dividend (including a dividend in specie), means the approval of the payment or distribution thereof by the directors of the company or by some other person with comparable authority or, in the case of the liquidation of a company, by the liquidator thereof;
[De nition of ‘declared’ substituted by s. 47 (1) (a) of Act 31 of 2005 and by s. 68 (1) (a) of Act 7 of 2010.]
‘dividend cycle’ means—
(a) in relation to the rst dividend declared by a company
(other than a company which carries on long-term insurance business) on or after 17 March 1993, the period commencing on the later of—
(i) 1 September 1992;
(ii) the day following the date of declaration of the
last dividend (other than a dividend in specie or a dividend payable on a preference share) declared by the company prior to 17 March 1993;
(iii) the date on which that company was incorporated, formed or otherwise established; and
[Sub-para. (iii) added by s. 58 (1) (b) of Act 45 of 2003.] (iv) the date on which that company becomes a
resident,
[Sub-para. (iv) added by s. 58 (1) (b) of Act 45 of 2003.] and ending on the date on which such rst dividend accrues to the shareholder concerned or on which the amount is deemed to have been declared as contemplated in section 64C (6);
[Para. (a) amended by s. 24 (1) (a) of Act 21 of 1994, by s. 58 (1) (c) of Act 45 of 2003 and by s. 32 (a) of Act 20 of 2006.]
(aA) in relation to the rst dividend declared by a company which carries on long-term insurance business out of pro ts derived during any year of assessment commencing on or after 1 July 1993, the period commencing on the later of—
(i) the later date of the date on which that company was incorporated, formed or otherwise established or 1 July 1993; and
[Sub-para. (i) substituted by s. 59 (1) (a) of Act 35 of 2007.] (ii) the day following the date of declaration of the last dividend (other than a dividend in specie or a dividend payable on a preference share) declared by the company prior to the declaration of the
said rst dividend,
and ending on the date on which such rst dividend accrues to the shareholder concerned or on which the amount is deemed to have been distributed as contemplated in section 64C (6); and
[Para. (aA) inserted by s. 24 (1) (c) of Act 21 of 1994 and amended by s. 58 (1) (d) of Act 45 of 2003 and by s. 59 (1) (b) of Act 35 of 2007.]
(b) in relation to any subsequent dividend declared by that company, the period commencing immediately after the previous dividend cycle of the company and ending on the date on which such dividend accrues to the shareholder concerned or on which the amount is deemed to have been distributed as contemplated in section 64C (6):
[Para. (b) substituted by s. 58 (1) (e) of Act 45 of 2003 and by s. 59 (1) (c) of Act 35 of 2007.]
Provided that—
Pendlex (to come into operation on 1 April 2017)
[NB: Part VII of Chapter II of the Income Tax Act has been repealed by s. 68 (1) of Act 43 of 2014, a provision that will come into operation on 1 April 2017.]
276
SAIT CompendIum oF TAx LegISLATIon VoLume 1
(i)
any dividend cycle of a company that has commenced and that has not ended before the effective date de ned in section 64D must be deemed to have ended on the day immediately before that effective date and must be deemed to be the nal dividend cycle of that company; and