Page 309 - SAIT Compendium 2016 Volume1

First Schedule INCOME TAX ACT 58 OF 1962 First Schedule
(2) . . .
[Sub-para. (2) substituted by s. 23 of Act 52 of 1970 and by s. 28 (c) of Act 103 of 1976 and deleted by s. 36 of Act 5 of 2001.]
(3) . . .
[Sub-para. (3) deleted by s. 28 (d) of Act 103 of 1976.] [Para. 5 substituted by s. 18 of Act 72 of 1963.]
6. (1) The standard value applicable to any class of livestock shall be—
(a) in the case of any farmer (other than a company or the estate of a deceased person) who on or after the rst day of
July, 1955, and before the rst day of July, 1962, rendered returns of income in respect of farming operations, the standard value which in relation to such farmer applied to that class of livestock in accordance with the provisions of paragraph 13 of the Third Schedule to the Income Tax Act, 1941;
(b) in the case of any other farmer (other than a company or the estate of a deceased person) or in the case of any farmer (other than a company or the estate of a deceased person) who on or after 1 July 1962 includes that class of livestock in his return of income for the rst time, either—
(i) such standard value as may be xed for that class of livestock by regulation made under this Act; or
(ii) such other standard value as the farmer may, subject to the provisions of subparagraphs (2) and (3), adopt for that class of livestock when rendering his rst return of income on or after the said date in respect of farming
operations, or when so including in any return of income such a class of livestock for the rst time;
(c) in the case of any company or estate of a deceased person the return of income of which in respect of farming operations for the rst year of assessment of that company or estate ending on or after 1 January 1977 includes that
class of livestock, either—
(i) such standard value as may be xed for that class of livestock by regulation made under this Act; or
(ii) such other standard value as such company or the executor of such estate, as the case may be, may, subject to the provisions of subparagraphs (2) and (3), adopt for that class of livestock when rendering the said return of income;
(d) in the case of any company or estate of a deceased person the return of income of which in respect of farming operations for a year of assessment subsequent to the year of assessment referred to in item (c), includes that class of livestock for the rst time, either—
(i) such standard value as may be xed for that class of livestock by regulation made under this Act; or
(ii) such other standard value as such company or the executor of such estate, as the case may be, may subject to the provisions of subparagraphs (2) and (3), adopt for that class of livestock when rendering the said return of
income.
(2) No standard value adopted under subparagraph (1) (b) (ii), (1) (c) (ii) or (1) (d) (ii) in respect of any class of
livestock shall be more than twenty per cent higher or lower than the standard value xed by regulation under this Act in respect of livestock of that class.
(3) Any farmer who classi es any kind of his livestock on a basis other than that applied by a regulation referred to in subparagraph (1) (b) (i), (1) (c) (i) or (1) (d) (i), may adopt in respect of any class into which he so classi es that livestock such a standard value as may be approved by the Commissioner with due regard to the values xed by regulation.
[Para. 6 substituted by s. 29 of Act 103 of 1976.]
7. The exercise of an option under subparagraph (1) (b) (ii), (1) (c) (ii) or (1) (d) (ii) of paragraph 6 shall be binding upon the farmer in respect of all subsequent returns for income tax purposes, and no standard value xed by any farmer whether under this Act or any previous Income Tax Act may be varied by him in respect of any subsequent year of assessment.
[Para. 7 amended by s. 23 (1) of Act 113 of 1977 and substituted by s. 76 of Taxation Laws Amendment Act, 2015 (‘, save with the consent and approval of the Commissioner and upon such terms as the Commissioner may require’ deleted) – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
8. (1) Where any farmer has during any year of assessment incurred expenditure in respect of the acquisition of livestock, the deduction which may be allowed to him under section 11 (a) of this Act in respect of the cost price of such livestock shall be limited to an amount which, together with the value of livestock held and not disposed of by him at the beginning of such year, does not exceed the income received by or accrued to him from farming during such year and the value of livestock held and not disposed of by him at the end of such year.
[Sub-para. (1) substituted by s. 79 of Act 45 of 2003.]
(2) Any amount which has been disallowed under the provisions of subparagraph (1) shall be carried forward and be deemed to be expenditure incurred by the farmer in respect of the acquisition of livestock during the succeeding year of assessment.
(3) The provisions of this paragraph shall not apply—
(a) in any case where it is shown by the farmer that livestock the cost of which falls to be dealt with under such
provisions is no longer held and not disposed of by him; and
(b) to so much of any expenditure (including any amount which has been carried forward under the provisions of
subparagraph (2)) which falls to be disallowed under subparagraph (1) as, together with the value of livestock held and not disposed of by him at the beginning of the year of assessment, exceeds such amount as is shown by him to be market value of all livestock held and not disposed of by him at the end of such year.
[Para. 8 deleted by s. 19 of Act 72 of 1963 and inserted by s. 38 (1) of Act 90 of 1988.]
9. The value to be placed upon produce included in any return shall be a fair and reasonable value.
[Para. 9 substituted by s. 77 of Taxation Laws Amendment Act, 2015 (‘such’ replaced by ‘a’ and ‘as the Commissioner may x’ deleted) – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
10. . . .
SAIT CompendIum oF TAx LegISLATIon VoLume 1 301
[Para. 10 deleted by s. 19 of Act 72 of 1963.]
INCOME TAX ACT – SCHEDULES