Page 313 - SAIT Compendium 2016 Volume1

First Schedule INCOME TAX ACT 58 OF 1962 First Schedule
(4) . . .
[Sub-para. (4) deleted by s. 79 (b) of Taxation Laws Amendment Act, 2015 – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
Prelex
Wording of sub-para. (4) in force until its deletion wef date of promulgation of Taxation Laws Amendment Act, 2015
(4) Notwithstanding anything contained in the preceding provisions of this paragraph, the Commissioner shall, until proof has been submitted to him as provided in subitem (ii) of item (a) or subitem (ii) of item (b) of subparagraph (1), assess and recover any tax payable by a farmer in respect of any year of assessment in which livestock has been sold as aforesaid, as if the said item had not been enacted: Provided that if proof is submitted to the satisfaction of the Commissioner in terms of the said item (a) or (b) he shall revise the assessment concerned and refund to the farmer so much of the amount paid by him as exceeds the amount found to be payable after allowing the deduction referred to in the said item (a) or item (b), whichever is applicable.
(5) The provisions of this paragraph shall not apply to the cost of any livestock purchased to replace livestock sold if the proceeds derived from the sale of such lastmentioned livestock have been dealt with under the provisions of
paragraph 13A.
[Sub-para. (5) added by s. 43 of Act 94 of 1983.] [Para. 13 substituted by s. 21 (1) of Act 90 of 1972.]
13A. (1) If any farmer has on or after 1 March 1982 disposed of any livestock on account of drought, and the whole or any portion of the proceeds of such disposal has as soon as possible, but in any case within three months after the receipt thereof by the farmer, been deposited by him in an account in his name with the Land and Agricultural Bank of South Africa, so much of such proceeds as has been so deposited by him shall, notwithstanding the provisions of section 23 (e) of this Act but subject to the provisions of subparagraph (3), be deemed not to be gross income derived by such farmer.
[Sub-para. (1) substituted by s. 46 (1) (a) of Act 113 of 1993.]
(2) Every farmer who desires that the proceeds derived by him or her from the disposal of livestock be dealt with under
the provisions of this paragraph shall notify the Commissioner in such form and within such time as may be prescribed
by the Commissioner.
[Sub-para. (2) substituted by s. 19 (1) of Act 4 of 2008.]
(3) Any amount, being the whole or any portion of a sum deposited in an account following the disposal of livestock as contemplated in subparagraph (1), shall—
(a) if it is withdrawn from such account before the expiration of a period of six months after the last day of the year
of assessment in which such disposal took place, be deemed to be gross income derived by the taxpayer from the disposal of livestock on the date of such disposal; or
[Item (a) amended by s. 24 of Act 85 of 1987 and substituted by s. 46 (1) (b) of Act 113 of 1993.]
(aA) if it is withdrawn from such account after the expiration of a period of six months but before the expiration of a period of six years after the last day of the year of assessment in which such disposal took place, be deemed to be
gross income derived by the taxpayer from the disposal of livestock on the date of such withdrawal; or
[Item (aA) inserted by s. 46 (1) (b) of Act 113 of 1993.]
(b) in the event of the taxpayer’s death or insolvency before the expiration of the said period, be deemed to be gross
income so derived on the day before the date of his death or insolvency, as the case may be; or
(c) if it is not so withdrawn and the taxpayer does not die or become insolvent before the expiration of such period, be
deemed to be gross income so derived on the last day of such period.
(4) . . .
[Sub-para. (4) deleted by s. 46 (1) (c) of Act 113 of 1993.] [Para. 13A inserted by s. 44 (1) of Act 94 of 1983.]
14. (1) Any amount received by or accrued to a farmer in respect of the disposal of any plantation shall, whether such plantation is disposed of separately or with the land on which it is growing, be deemed not to be a receipt or accrual of a capital nature and shall form part of such farmer’s gross income.
(2) Where any plantation is disposed of by a farmer with the land on which it is growing the amount to be included in such farmer’s gross income in terms of subparagraph (1) shall—
(a) if the amount representing the consideration payable in respect of the disposal of the plantation is agreed to between
the parties to the transaction, be the amount so agreed to; or
(b) failing such agreement, be such portion of the consideration payable in respect of the disposal of the land and the
plantation as represents the consideration payable for the plantation.
[Item (b) substituted by s. 80 of Taxation Laws Amendment Act, 2015 (‘in the opinion of the Commissioner’ deleted) – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
15. (1) In the determination of the taxable income of any farmer there shall be allowed as a deduction—
(a) any expenditure incurred by such farmer during the year of assessment in respect of the establishment and
maintenance of plantations;
(b) any expenditure incurred by such farmer prior to the rst day of July, 1948, in respect of the establishment and
maintenance of any plantation or the cost of acquisition of any plantation purchased by such farmer whether before or after the rst day of July, 1948: Provided that—
(i) any deductions allowed under this item in respect of any plantation shall not in respect of any year of assessment exceed the gross income derived by such farmer in that year from the said plantation;
SAIT CompendIum oF TAx LegISLATIon VoLume 1 305
INCOME TAX ACT – SCHEDULES