Page 306 - SAIT Compendium 2016 Volume1

s 102 INCOME TAX ACT 58 OF 1962 s 106
return during the period of three years since the end
of that year of assessment.
[Sub-s. (1A) inserted by s. 8 (a) of Act 9 of 2007 and substituted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(2) . . .
[Sub-s. (2) amended by s. 35 (b) and (c) of Act 20 of 2006 and by s. 8 (b) of Act 9 of 2007 and deleted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(3) . . .
[Sub-s. (3) deleted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(4) . . .
[Sub-s. (4) added by s. 35 (d) of Act 20 of 2006 and deleted by s. 271 of Act 28 of 2011.]
[S. 102 substituted by s. 28 (1) of Act 69 of 1975, amended by s. 27 of Act 91 of 1982 and by s. 44 of Act 30 of 1998 and substituted by s. 30 of Act 30 of 2002.]
102A . . .
[S. 102A inserted by s. 40 of Act 94 of 1983, amended by s. 28 (1) of Act 36 of 1996, by s. 9 of Act 9 of 2007 and by s. 34 of Act 3 of 2008 and repealed by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
103 Transactions, operations or schemes for purposes of avoiding or postponing liability for or reducing amounts of taxes on income
(1) . . .
[Sub-s. (1) substituted by s. 14 (1) (a) of Act 101 of 1978, amended by s. 29 (a) and (b) of Act 36 of 1996 and deleted by s. 36 (1) (a) of Act 20 of 2006.]
(2) Whenever the Commissioner is satis ed that— (a) any agreement affecting any company or trust; or (b) any change in—
(i) the shareholding in any company; or
(ii) the members’ interests in any company which is
a close corporation; or
(iii) the trustees or bene ciaries of any trust, as a direct or indirect result of which—
(A) income has been received by or has accrued to that company or trust during any year of assessment; or (B) any proceeds received by or accrued to or deemed to have been received by or to have accrued to that company or trust in consequence of the disposal of any asset, as contemplated in the Eighth Schedule, result in a capital gain
during any year of assessment,
has at any time been entered into or effected by any person solely or mainly for the purpose of utilising any assessed loss, any balance of assessed loss, any capital loss or any assessed capital loss, as the case may be, incurred by the company or trust, in order to avoid liability on the part of that company or trust or any other person for the payment of any tax, duty or levy on income, or to reduce the amount thereof— (aa) the set-off of any such assessed loss or balance
of assessed loss against any such income shall be
disallowed;
(bb) the set-off of any such assessed loss or balance of
assessed loss against any taxable capital gain, to the extent that such taxable capital gain takes into account such capital gain, shall be disallowed; or
(cc) the set off of such capital loss or assessed capital loss against such capital gain shall be disallowed.
[Para. (b) amended by s. 33 (a) of Act 5 of 2001.]
[Sub-s. (2) substituted by s. 14 (1) (a) of Act 101 of 1978, by s.37(a)ofAct121of1984andbys.45(1)(a)ofAct30of 1998.]
(3) . . .
[Sub-s. (3) substituted by s. 52 of Act 59 of 2000 and deleted by s. 36 (1) (a) of Act 20 of 2006.]
(4) If in any objection and appeal proceedings relating to a decision under subsection (2) it is proved that the agreement or change in shareholding or members’ interests or trustees or bene ciaries of the trust in question would result in the avoidance or the postponement of liability for payment of any tax, duty or levy imposed by this Act or any previous Income Tax Act or any other law administered by the Commissioner, or in the reduction of the amount thereof, it shall be presumed, until the contrary is proved in the case of any such agreement or change in shareholding or members’ interests or trustees or bene ciaries of such trust, that it has been entered into or effected solely or mainly for the purpose of utilising the assessed loss, balance of assessed loss, capital loss or assessed capital loss in question in order to avoid or postpone such liability or to reduce the amount thereof.
[Sub-s. (4) substituted by s. 14 (1) (b) of Act 101 of 1978, amended by s. 37 (b) and (c) of Act 121 of 1984, by s. 45 (1) (b) and (c) of Act 30 of 1998 and by s. 33 (b) of Act 5 of 2001 and substituted by s. 36 (1) (b) of Act 20 of 2006 and by s. 271 of Act 28 of 2011 – date of commencement:
1 October 2012.]
(5) Where under any transaction, operation or scheme— (a) any taxpayer has ceded the right to receive any amount in exchange for the right to receive any
amount of dividends; and
(b) in consequence of that cession the liability for
normal tax of the taxpayer or any other party to the transaction, operation or scheme, as determined before applying the provisions of this subsection, has been reduced or extinguished,
the Commissioner shall determine the liability for normal tax of the taxpayer and any other party to the transaction, operation or scheme as if that cession had not been effected. [Sub-s. (5) added by s. 19 of Act 70 of 1989, amended by s. 42 (1) of Act 32 of 2004 and by s. 36 (1) (c) of Act 20 of 2006 and substituted by s. 89 (1) of Act 24 of 2011.]
(6) ...
[Sub-s. (6) added by s. 29 (c) of Act 36 of 1996 and deleted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(7) . . .
[Sub-s. (7) added by s. 29 (c) of Act 36 of 1996 and deleted by s. 36 (1) (d) of Act 20 of 2006.]
104 . . .
[S. 104 amended by s. 50 of Act 30 of 2000 and by s. 51 of Act 74 of 2002 and repealed by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
105 . . .
[S. 105 substituted by s. 52 of Act 74 of 2002 and repealed by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
105A . . .
[S. 105A inserted by s. 23 of Act 65 of 1986, amended by s. 16 of Act 18 of 2009 and repealed by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
106 . . .
[S. 106 amended by s. 30 of Act 90 of 1962, substituted by s. 29 of Act 69 of 1975, amended by s. 26 (a) and (b) of Act 103 of 1976, by s. 51 (1) of Act 30 of 2000, by s. 53 (1) of Act 74 of 2002, by s. 76 (b) and (d) of Act 45 of 2003 and repealed by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
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SAIT CompendIum oF TAx LegISLATIon VoLume 1