Page 290 - SAIT Compendium 2016 Volume1

s 64E INCOME TAX ACT 58 OF 1962 s 64EB
(bb) a resident; and
(cc) a connected person in relation to a person
contemplated in subparagraph (i),
in respect of a debt, that company must, for the purposes of this Part, be deemed to have paid a dividend if that debt arises by virtue of any share held in that company by a person contemplated in subparagraph (i).
[Words in sub-s. (4) (a) following sub-para. (ii) substituted by s. 83 (1) (e) of Act 22 of 2012 – date of commencement: 1 January 2013.]
(b) The amount of the dividend that is deemed to have been paid in terms of paragraph (a) must—
(i) be deemed to consist of a distribution of an asset in specie; and
(ii) for the purposes of subsection (1), be deemed to be equal to the greater of—
(aa) the market-related interest in respect of that debt, less
the amount of interest that is payable to that company
in respect of that debt for that year of assessment; or
[Item (aa) substituted by s. 83 (1) (g) of Act 22 of 2012 – date of commencement: 1 January 2013.]
(bb) nil.
[Para. (b) substituted by s. 83 (1) (f) of Act 22 of 2012 – date
of commencement deemed to have been 1 April 2012.]
(c) Where during any year of assessment a company is deemed to have paid a dividend in terms of paragraph (a), that dividend must be deemed to have been paid on the last day of that year of assessment.
(d) For the purposes of this subsection, ‘market-related interest’, in relation to any debt owed to a company[,] means the amount of interest that would be payable to that company on the amount owing to that company in respect of that debt for a period during a year of assessment if the debt had been owed for that period at the of cial rate of interest as de ned in paragraph (1) of the Seventh Schedule.
[Para. (d) substituted by s. 83 (1) (h) of Act 22 of 2012 – date of commencement: 1 January 2013.]
(e) This subsection does not apply to the extent that the amount owing to a company in respect of a debt contemplated in paragraph (a) was deemed to be a dividend that was subject to the secondary tax on companies.
[Para. (e) added by s. 83 (1) (i) of Act 22 of 2012 (date of commencement deemed to have been 1 April 2012) and substituted by s. 83 (1) (j) of Act 22 of 2012 – date of commencement: 1 January 2013.]
[Sub-s. (4) added by s. 76 (1) (c) of Act 24 of 2011 – date of commencement: 1 April 2012.]
(5) For the purposes of subsection (1), where any amount of any dividend is denominated in any currency other than the currency of the Republic, that amount must be translated to the currency of the Republic by applying the spot rate applicable at the time that the dividend is paid.
(6) Where a—
(a) company that makes payment of a dividend to any
person withholds an amount of dividends tax from
that payment in terms of section 64G (1); or
(b) regulated intermediary that makes payment of a dividend to any person withholds an amount of dividends tax
from that payment in terms of section 64H (1),
that company or regulated intermediary must, for the purposes of this Part, be deemed to have paid the amount so withheld to that person.
[Sub-s. (6) added by s. 83 (1) (k) of Act 22 of 2012 – date of commencement deemed to have been 1 April 2012.]
[S. 64E inserted by s. 56 (1) of Act 60 of 2008 and substituted by s. 53 (1) of Act 17 of 2009 – date of commencement: 1 April 2012.]
64EA Liability for tax
Subject to section 64J (7) any—
[Words in s. 64EA preceding para. (a) substituted by s. 84 (1) (a) of Act 22 of 2012 – date of commencement deemed to have been 1 April 2012.]
(a) bene cial owner of a dividend, to the extent that the dividend does not consist of a distribution of an asset in specie; or
(b) company that is a resident that declares and pays a dividend to the extent that the dividend consists of a distribution of an asset in specie,
is liable for the dividends tax in respect of that dividend.
[S. 64EA inserted by s. 77 (1) of Act 24 of 2011 – date of commencement: 1 April 2012.]
64EB Deemed bene cial owners of dividends
(1) For the purposes of this Part, where—
(a) a person that is contemplated in section 64F (1) acquires the right to a dividend by way of cession; and (b) that dividend is either announced or declared before
that acquisition,
the person ceding that right is deemed to be the bene cial owner of that dividend: Provided that this subsection does not apply to any cession in respect of a share if the person to whom those rights are ceded holds all the rights attaching to the share after the cession.
(2) For the purposes of this Part, where— (a) a person that is—
(i) a company which is a resident;
(ii) the government of the Republic in the national,
provincial or local sphere;
[Sub-para. (ii) retrospectively substituted by s. 69 (1) (a) of Act 43 of 2014 – date of commencement deemed to have been 4 July 2013; the substituted subparagraph applies iro amounts paid on or after that date.]
(iii) a public bene t organisation approved by the Commissioner in terms of section 30 (3);
(iv) a trust contemplated in section 37A;
(v) an institution, board or body contemplated in
section 10 (1) (cA);
(vi) a fund contemplated in section 10 (1) (d) (i) or
(ii);
(vii) a person contemplated in section 10 (1) (t);
(viii) ...
[Sub-para. (viii) deleted by s. 74 of Taxation Laws Amendment Act, 2015 – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
(ix) ...
[Sub-para. (ix) deleted by s. 74 of Taxation Laws Amendment Act, 2015 – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
Prelex
Wording of sub-paras. (viii) and (ix) in force until their deletion wef date of promulgation of Taxation Laws Amendment Act, 2015
(viii) a shareholder in a registered micro business, as de ned in the Sixth Schedule, paying that dividend, to the extent that the aggregate amount of dividends paid by that registered micro business to its shareholders during the year of assessment in which that dividend is paid does not exceed the amount of R200 000;
(ix) a person that is not a resident and the dividend is a dividend contemplated in paragraph (b) of the de nition of ‘dividend’ in section 64D;
(x) a portfolio of a collective investment scheme in securities;
282
SAIT CompendIum oF TAx LegISLATIon VoLume 1