Page 30 - SAIT Compendium 2016 Volume1

s 1
INCOME TAX ACT 58 OF 1962 s 1
registered solely because of the provisions of section
2 (2) (a) of that Act; or
[Para. (a) substituted by s. 3 (1) (a) of Act 101 of 1978 and
by s. 2 (1) (a) of Act 65 of 1986.]
(b) any medical scheme registered under the provisions
of the Medical Schemes Act;
[Para. (b) substituted by s. 3 (1) (a) of Act 101 of 1978, by s. 10 (1) (a) of Act 53 of 1999 and by s. 4 (1) (b) of Act 31 of 2013 – date of commencement: 1 January 2014.]
(c) . . .
[Para. (c) substituted by s. 2 (a) of Act 21 of 1995 and by
s. 19 (1) (a) of Act 30 of 1998 and deleted by s. 19 (1) (b) of Act 30 of 1998.]
‘bonus debentures or securities’ means debentures or securities issued by a company, whether by way of a bonus award or otherwise, in such a manner that the company’s reserves or unappropriated pro ts are in whole or in part applied in paying up such debentures or securities;
[De nition of ‘bonus debentures or securities’ inserted by s. 4 (1) (a) of Act 85 of 1974.]
‘building society’ . . .
[De nition of ‘building society’ inserted by s. 1 (1) (a) of
Act 108 of 1986 and deleted by s. 2 (1) (a) of Act 3 of 2008.]
‘business day’ . . .
[De nition of ‘business day’ inserted by s. 2 (1) (a) of Act
113 of 1993 and deleted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
‘capital gain’ means an amount determined in terms of paragraph 3 of the Eighth Schedule;
[De nition of ‘capital gain’ inserted by s. 5 (d) of Act 5 of 2001.]
‘capital loss’ means an amount determined in terms of paragraph 4 of the Eighth Schedule;
[De nition of ‘capital loss’ inserted by s. 5 (d) of Act 5 of 2001.]
‘capitalization shares’ . . .
[De nition of ‘capitalization shares’ inserted by s. 4 (1) (b)
of Act 85 of 1974 and deleted by s. 6 (1) (a) of Act 7 of 2010.]
‘Chief Executive Of cer’ . . .
[De nition of ‘Chief Executive Of cer’ inserted by s. 2 (a)
of Act 36 of 1996 and deleted by s. 34 (1) of Act 34 of 1997.]
‘child’, in relation to any person, includes any person adopted by him or her—
PRELIMINARY (s. 1)
[NB: A list of all the words and terms de ned in this Act can be found at the end of the Act, after Schedule Eleven. The list includes both the de nitions in section 1, pertaining to the whole Act, and the de nitions in the rest of the Act, pertaining to speci c sections, parts or chapters only.]
1 Interpretation
(1) In this Act, unless the context otherwise indicates—
‘agent’ includes any partnership or company or any other body of persons corporate or unincorporate acting as an agent;
‘aggregate capital gain’ means an amount determined in terms of paragraph 6 of the Eighth Schedule;
[De nition of ‘aggregate capital gain’ inserted by s. 5 (a) of Act 5 of 2001.]
‘aggregate capital loss’ means an amount determined in terms of paragraph 7 of the Eighth Schedule;
[De nition of ‘aggregate capital loss’ inserted by s. 5 (a) of Act 5 of 2001.]
‘assessed capital loss’ means an amount determined in terms of paragraph 9 of the Eighth Schedule;
[De nition of ‘assessed capital loss’ inserted by s. 5 (a) of Act 5 of 2001.]
‘assessment’ has the meaning assigned under section 1 of the Tax Administration Act, and includes a determination by the Commissioner—
(a) and (b) . . .
[Paras. (a) and (b) omitted by s. 271 of Act 28 of 2011.] (c) of any loss ranking for set-off;
(d) of any assessed capital loss determined in terms of
paragraph 9 of the Eighth Schedule; or
(e) of any amounts to be taken into account in the determination of tax payable on income in future
years;
[De nition of ‘assessment’ amended by s. 3 (a) of Act 90 of 1962, substituted by s. 4 (1) (a) of Act 88 of 1971 and by s. 4 (1) (a) of Act 69 of 1975 and amended by s. 2 (1) (a) of Act 104 of 1980, by s. 5 (c) of Act 5 of 2001 and by s. 12 (1) (a) of Act 45 of 2003 and substituted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
‘assisted gold mine’ . . .
[De nition of ‘assisted gold mine’ inserted by s. 5 (a)
of Act 76 of 1986 and deleted by s. 2 (a) of Act 141 of 1992.]
‘average exchange rate’ in relation to a year of assessment means the average determined by using the closing spot rates at the end of daily or monthly intervals during that year of assessment which must be consistently applied within that year of assessment;
[De nition of ‘average exchange rate’ inserted by s. 6 (1) (a) of Act 74 of 2002 and substituted by s. 3 (1) (a) of Act 32 of 2005.]
‘Banks Act’ means the Banks Act, 1990 (Act 94 of 1990);
[De nition of ‘Banks Act’ inserted by s. 4 (1) (a) of Act 31 of 2013 – date of commencement: 1 January 2014.]
‘bene ciary’ in relation to a trust means a person who has a vested or contingent interest in all or a portion of the receipts or accruals or the assets of that trust;
[De nition of ‘bene ciary’ inserted by s. 3 (1) (b) of Act 32 of 2005.]
‘bene t fund’ means—
(a) any friendly society registered under the Friendly
Societies Act, 1956 (Act 25 of 1956), or any fund established before 13 June 1986 which is not so
(a) (b)
under the law of the Republic; or
[Para. (a) substituted by s. 2 (1) (b) of Act 3 of 2008.] under the law of any country other than the Republic, provided the adopted person is under such law accorded the status of a legitimate child of the adoptive parent and the adoption was made at a time when the adoptive parent was ordinarily resident in such country;
[De nition of ‘child’ inserted by s. 4 (a) of Act 90 of 1964 and amended by s. 2 (1) (b) of Act 3 of 2008.]
‘close corporation’ means a close corporation within the meaning of the Close Corporations Act, 1984 (Act 69 of 1984);
[De nition of ‘close corporation’ inserted by s. 2 (1) (a) of Act 121 of 1984.]
‘collateral arrangement’ means a collateral arrangement as de ned in section 1 of the Securities Transfer Tax Act, 2007 (Act 25 of 2007);
[De nition of ‘collateral arrangement’ inserted by
s. 3 (1) (a) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 January 2016; the inserted de nition applies iro collateral arrangements entered into on or after that date.]
22 SAIT CompendIum oF TAx LegISLATIon VoLume 1