Page 316 - SAIT Compendium 2016 Volume1

First Schedule INCOME TAX ACT 58 OF 1962 First Schedule
20. (1) If a taxpayer (other than a company) who derives income from farming operations makes an election as provided in subparagraph (6) and if—
[Words preceding item (a) in sub-para. (1) substituted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(a) the taxpayer’s income was in whole or in part derived from farming operations carried on on any land acquired— (i) by the State (including the Railways Administration** and any provincial administration) or any local authority
as de ned in section 1 of the Expropriation Act, 1975 (Act 63 of 1975); or
(ii) by any juristic person or body mentioned in section 3 (2) of the said Act, if such juristic person or body acquired
the land by expropriation or, where the owner of the land agreed to dispose of it, the Minister referred to in subparagraph (6) (b) (ii) has given a certi cate as contemplated therein;
[Item (a) substituted by s. 31 (1) (a) of Act 103 of 1976.]
(b) in consequence of the acquisition of such land as aforesaid the farming undertaking on such land (hereinafter
referred to as the undertaking) has been or is being wound up; and
[Item (b) amended by s. 31 (1) (b) of Act 103 of 1976.]
(c) the taxpayer’s income for any year of assessment (being the year of assessment during which the said land was
acquired as aforesaid or the rst or the second year of assessment succeeding the rst-mentioned year of assessment) includes any abnormal farming receipts or accruals referred to in subparagraph (2) which relate to the aforesaid
farming operations,
[Item (c) amended by s. 31 (1) (c) of Act 103 of 1976.]
the normal tax chargeable (as determined before the deduction of any rebate) in respect of the taxpayer’s taxable income for such year of assessment shall, notwithstanding any other provisions of this Act to the contrary, be determined at an
amount equal to the sum of—
(i) an amount equal to the taxpayer’s excess farming pro ts for the year of assessment (as determined in accordance
with subparagraph (3) (a)) multiplied by the relevant rate of tax xed for the year of assessment in terms of section 5 (2) in respect of the rst rand of taxable income; and
[Item (i) substituted by s. 43 of Act 129 of 1991.]
(ii) an amount equal to the amount of normal tax (as determined before the deduction of any rebate) which would have been payable by the taxpayer in respect of the year of assessment if his or her taxable income for that year had been an amount equal to the balance of his or her taxable income for that year (as determined in accordance with subparagraph (4)).
[Item (ii) substituted by s. 45 (b) of Act 8 of 2007.]
[Sub-para. (1) amended by s. 26 (a) of Act 104 of 1980, by s. 30 of Act 91 of 1982 and by s. 45 (a) of Act 8 of 2007 and substituted by s. 82 (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
20. (1) If a taxpayer (other than a company) who derives income from farming operations makes an election as provided in subparagraph (6) and if so required proves to the satisfaction of the Commissioner—
[Words preceding item (a) in sub-para. (1) substituted by s. 271 of Act 28 of 2011 – date of commencement: 1 October
2012.]
(a) that his income was in whole or in part derived from farming operations carried on on any land acquired—
(i) by the State (including the Railways Administration and any provincial administration) or any local authority as de ned in section 1 of the Expropriation Act, 1975 (Act 63 of 1975); or
[NB: In terms of s. 36 (2) of the Legal Succession to the South African Transport Services Act 9 of 1989, the reference to ‘the State’ and to ‘the Railways Administration’ in the above provision is to be construed as including the Company (Transnet Limited) and the Corporation (the South African Rail Commuter Corporation Limited).]
(ii) by any juristic person or body mentioned in section 3 (2) of the said Act, if such juristic person or body acquired the land by expropriation or, where the owner of the land agreed to dispose of it, the Minister referred to in subparagraph (6) (b) (ii) has given a certi cate as contemplated therein;
[Item (a) substituted by s. 31 (1) (a) of Act 103 of 1976.]
(b) that in consequence of the acquisition of such land as aforesaid the farming undertaking on such land (hereinafter
referred to as the undertaking) has been or is being wound up; and
[Item (b) amended by s. 31 (1) (b) of Act 103 of 1976.]
(c) that the taxpayer’s income for any year of assessment (being the year of assessment during which the said land
was acquired as aforesaid or the rst or the second year of assessment succeeding the rst-mentioned year of assessment) includes any abnormal farming receipts or accruals referred to in subparagraph (2) which relate to the aforesaid farming operations,
[Item (c) amended by s. 31 (1) (c) of Act 103 of 1976.]
the normal tax chargeable (as determined before the deduction of any rebate) in respect of the taxpayer’s taxable income for such year of assessment shall, notwithstanding any other provisions of this Act to the contrary, be
determined at an amount equal to the sum of—
* In terms of s. 36 (2) of the Legal Succession to the South African Transport Services Act 9 of 1989, the reference to ‘the State’ and to ‘the Railways Administration’ in the above provision is to be construed as including the Company (Transnet Limited) and the Corporation (the South African Rail Commuter Corporation Limited).
308 SAIT CompendIum oF TAx LegISLATIon VoLume 1