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First Schedule INCOME TAX ACT 58 OF 1962 First Schedule
First Schedule
COMPUTATION OF TAXABLE INCOME DERIVED FROM PASTORAL, AGRICULTURAL OR OTHER FARMING OPERATIONS (paras. 1–20)
(Section twenty-six of this Act)
1. In this Schedule—
(a) a reference to a year of assessment shall in the case of any taxpayer who has under the provisions of section
66 (13A) of this Act been permitted to furnish accounts in respect of the income derived by him from pastoral, agricultural or other farming operations made up to a date other than the last day of the relevant year of assessment, be construed as a reference to the period covered by such accounts; and
[Item (a) substituted by s. 78 of Act 45 of 2003.]
(b) a reference to the end of a year of assessment includes, where the period assessed ends on a date other than the last
day of the year of assessment, a reference to the end of that period.
[Para. 1 substituted by s. 15 of Act 72 of 1963.]
2. Every farmer shall include in his return rendered for income tax purposes the value of all livestock or produce held and not disposed of by him at the beginning and the end of each year of assessment.
3. (1) Subject to the provisions of subparagraphs (2) and (3), the value of livestock or produce held and not disposed of at the end of the year of assessment shall be included in income for such year of assessment, and there shall be allowed as a deduction from such income the value of livestock or produce, as determined in accordance with the provisions of paragraph 4, held and not disposed of at the beginning of the year of assessment.
[Sub-para. (1) amended by s. 16 of Act 72 of 1963.]
(2) For the purposes of subparagraph (1), the value of livestock or produce held and not disposed of at the end of any year of assessment by any person who discontinued farming operations during such year, shall be included in his income for such year and for all subsequent years of assessment so long as such livestock or produce, or any portion thereof, is so held and not disposed of.
[Sub-para. (2) amended by s. 16 of Act 72 of 1963 and substituted by s. 16 of Act 101 of 1978.]
(3) Any livestock which is the subject of any ‘sheep lease’ or similar agreement concerning livestock, and any produce which is the subject of a similar agreement, shall be deemed to be held and not disposed of by the grantor of such lease or agreement.
[Sub-para. (3) substituted by s. 16 of Act 101 of 1978.]
4. (1) The values of livestock and produce held and not disposed of at the beginning of any year of assessment shall, subject to the provisions of subparagraph (2), be deemed to be—
[Sub-para. (1) amended by s. 17 (a) of Act 72 of 1963.]
(a) in the case of a farmer who was carrying on farming operations on the last day of the year immediately preceding
the year of assessment, the sum of—
(i) the values of livestock and produce held and not disposed of by him at the end of the year immediately
preceding the year of assessment; and
[Subitem (i) amended by s. 17 (b) of Act 72 of 1963.] (ii) the market value of livestock or produce—
(aa) acquired by such farmer during the current year of assessment otherwise than by purchase or natural increase or in the ordinary course of farming operations; or
(bb) held by such farmer otherwise than for purposes of pastoral, agricultural or other farming operations, which such farmer during such year of assessment commenced to hold for purposes of pastoral, agricultural or other farming operations; or
[Subitem (ii) substituted by s. 43 (a) of Act 113 of 1993 and by s. 35 (a) of Act 5 of 2001.]
(b) in the case of any person commencing or recommencing farming operations during the year of assessment, the sum
of—
(i) the value of any livestock or produce held and not disposed of by him at the end of the day immediately
preceding the date of such commencement or recommencement; and
(ii) the market value of livestock or produce (other than livestock or produce to which subitem (i) refers)—
(aa) acquired by such person during the year of assessment otherwise than by purchase or natural increase or in the ordinary course of farming operations; or
(bb) held by such person otherwise than for purposes of pastoral, agricultural or other farming operations, which such person during such year of assessment commenced to hold for purposes of pastoral, agricultural or other farming operations.
(2) . . .
(3) . . .
[Subitem (ii) substituted by s. 43 (b) of Act 113 of 1993 and by s. 35 (b) of Act 5 of 2001.]
[Sub-para. (2) added by s. 17 (c) of Act 72 of 1963 and deleted by s. 30 of Act 36 of 1996.]
[Sub-para. (3) added by s. 41 of Act 89 of 1969 and deleted by s. 42 of Act 94 of 1983.]
5. (1) The value to be placed upon livestock for the purposes of this Schedule shall, subject to the provisions of paragraph 4 (1) as respects livestock held and not disposed of at the end of the year of assessment, be the standard value applicable to the livestock.
[Sub-para. (1) amended by s. 30 of Act 88 of 1971 and substituted by s. 28 (a) of Act 103 of 1976, by s. 26 of Act 96 of 1981, by s. 31 (a) of Act 36 of 1996 and by s. 55 of Act 74 of 2002.]
(1A) . . .
[Sub-para. (1A) inserted by s. 28 (b) of Act 103 of 1976, amended by s. 23 of Act 104 of 1980 and deleted by s. 31 (b) of Act 36 of 1996.]
300 SAIT CompendIum oF TAx LegISLATIon VoLume 1