Page 312 - SAIT Compendium 2016 Volume1

First Schedule INCOME TAX ACT 58 OF 1962 First Schedule
(5) . . .
[Sub-para. (5) amended by s. 24 of Act 104 of 1980, substituted by s. 27 (1) (g) of Act 96 of 1981, amended by s. 28 (1) (b) of Act 91 of 1982, by s. 2 (2) (b) of Act 8 of 2007 and by s. 1 (2) (c) of Act 3 of 2008 and deleted by s. 57 (1) (e) of Act 60 of 2008.]
(6) If in any year of assessment any building in relation to which a deduction has been allowed to any farmer under item (f) of subparagraph (1) of this paragraph or item (f) of subparagraph (1) of paragraph 17 of the Third Schedule to the Income Tax Act, 1941, whether in the current or in any previous year of assessment, is used for the domestic purposes of any person other than an employee of that farmer, there shall be included in the income of that farmer for the current year of assessment the amount of such deduction less one-tenth of the said amount in respect of each completed period of one year, but not exceeding ten years, during which such building was used by the said farmer in connection with his farming operations other than for the domestic purposes of persons who are not his employees.
13. (1) If—
(a) any farmer—
(i) has in any year of assessment sold livestock on account of drought, stock disease or damage to grazing by re
or plague; and
[Subitem (i) substituted by s. 17 (1) of Act 101 of 1978.]
(ii) has within four years after the close of the said year of assessment purchased livestock to replace the livestock so sold; or
(b) any farmer—
(i) has in any year of assessment (other than a year of assessment in respect of which the normal tax chargeable
in the case of such farmer is required to be determined under paragraph 19) sold livestock by reason of his
participation in a livestock reduction scheme organised by the Government; and
(ii) has within nine years after the close of the said year of assessment purchased livestock to replace the livestock
so sold,
the cost of the livestock so purchased shall, notwithstanding anything in this Schedule contained, be allowed, at the option of such farmer, as a deduction in the determination of his taxable income for the year of assessment during which the livestock was so sold, provided the claim for such deduction is made within ve years after the close of that year of assessment in the case of a farmer referred to in item (a), or within ten years after the close of that year of assessment in the case of a farmer referred to in item (b).
[Sub-para. (1) substituted by s. 79 (a) of Taxation Laws Amendment Act, 2015 – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
Prelex
Wording of sub-para. (1) in force until its substitution wef date of promulgation of Taxation Laws Amendment Act, 2015
13. (1) If it is proved to the satisfaction of the Commissioner— (a) that any farmer—
(i) has in any year of assessment sold livestock on account of drought, stock disease or damage to grazing by
re or plague; and
[Subitem (i) substituted by s. 17 (1) of Act 101 of 1978.]
(ii) has within four years after the close of the said year of assessment purchased livestock to replace the livestock so sold; or
(b) that any farmer—
(i) has in any year of assessment (other than a year of assessment in respect of which the normal tax chargeable
in the case of such farmer is required to be determined under paragraph 19) sold livestock by reason of his
participation in a livestock reduction scheme organized by the Government; and
(ii) has within nine years after the close of the said year of assessment purchased livestock to replace the
livestock so sold,
the cost of the livestock so purchased shall, notwithstanding anything in this Schedule contained, be allowed, at the option of such farmer, as a deduction in the determination of his taxable income for the year of assessment during which the livestock was so sold, provided the claim for such deduction is made within ve years after the close of that year of assessment in the case of a farmer referred to in item (a), or within ten years after the close of that year of assessment in the case of a farmer referred to in item (b).
(2) The cost of livestock so allowed as a deduction shall not be allowed as a deduction in the year of assessment in which the purchases were made.
(3) Every farmer who desires to claim a deduction in terms of subparagraph (1), shall for the year of assessment in which he or she sold livestock on account of conditions of drought or stock disease or by reason of his or her participation in a livestock reduction scheme organised by the Government notify the Commissioner accordingly in such form and within such time as may be prescribed and obtain and retain full particulars in regard to the livestock so sold.
[Sub-para. (3) substituted by s. 271 of Act 28 of 2011 (date of commencement: 1 October 2012) and by s. 79 (a) of Taxation Laws Amendment Act, 2015 – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
Prelex
Wording of sub-para. (3) in force until its substitution wef date of promulgation of Taxation Laws Amendment Act, 2015
(3) Every farmer who desires to claim a deduction in terms of subparagraph (1), shall for the year of assessment in which he or she sold livestock on account of conditions of drought or stock disease or by reason of his or her participation in a livestock reduction scheme organized by the Government notify the Commissioner accordingly and obtain and retain full particulars in regard to the livestock so sold.
304 SAIT CompendIum oF TAx LegISLATIon VoLume 1