Page 317 - SAIT Compendium 2016 Volume1

First Schedule INCOME TAX ACT 58 OF 1962 First Schedule
(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.]
(1A) Where the land referred to in subparagraph (1) was acquired as contemplated in item (a) of that subparagraph within the period of twelve months after the owner accepted an offer to purchase the land, it shall be deemed for purposes of that subparagraph that such land was acquired on the date on which the offer was accepted.
[Sub-para. (1A) inserted by s. 25 of Act 113 of 1977 and substituted by s. 82 (a) of Taxation Laws Amendment Act, 2015 – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
(2) For the purposes of subparagraph (1) (c), the taxpayer’s abnormal farming receipts or accruals for any year of assessment referred to in subparagraph (1) (c) shall be deemed to be such amounts as consist of—
Prelex
Wording of sub-para. (1A) in force until its substitution wef date of promulgation of Taxation Laws Amendment Act, 2015
(1A) Where it is shown by the taxpayer to the satisfaction of the Commissioner that the land referred to in subparagraph (1) was acquired as contemplated in item (a) of that subparagraph within the period of twelve months after the owner accepted an offer to purchase the land, it shall be deemed for purposes of that subparagraph that such land was acquired on the date on which the offer was accepted.
[Sub-para. (1A) inserted by s. 25 of Act 113 of 1977.]
(a) (b)
any amounts derived from disposals, in the course of the winding-up of the undertaking, of livestock normally held for the purposes of the undertaking; or
any amounts derived from the disposal of any plantation together with the land referred to in subparagraph (1) (a) or from the disposal in the course of the winding-up of the undertaking of any plantation on such land or any forest produce from such plantation.
[Sub-para. (2) 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. (2) in force until its substitution wef date of promulgation of Taxation Laws Amendment Act, 2015
(2) For the purposes of subparagraph (1) (c), the taxpayer’s abnormal farming receipts or accruals for any year of assessment referred to in subparagraph (1) (c) shall be deemed to be such amounts as are proved to the satisfaction of the Commissioner to consist of—
(a) any amounts derived from disposals, in the course of the winding-up of the undertaking, of livestock normally
held for the purposes of the undertaking; or
(b) any amounts derived from the disposal of any plantation together with the land referred to in subparagraph (1)
(a) or from the disposal in the course of the winding-up of the undertaking of any plantation on such land or any forest produce from such plantation.
(3) (a) For the purposes of this paragraph the taxpayer’s excess farming pro ts for any year of assessment referred to in subparagraph (1) (c) shall be deemed to be the sum of the taxpayer’s excess livestock pro ts (if any) for such year, as determined under item (b), and the taxpayer’s excess plantation farming pro ts (if any) for such year, as determined under item (g): Provided that the amount of such excess farming pro ts shall not be determined at an amount exceeding the amount of the taxpayer’s taxable income for such year.
(b) The taxpayer’s excess livestock pro ts for such year shall be so much of the sum of the amounts referred to in subparagraph (2) (a) which have been derived by the taxpayer during such year as does not exceed the taxpayer’s abnormal livestock pro ts for such year, as determined under item (c).
(c) The taxpayer’s abnormal livestock pro ts for such year shall be the amount by which his livestock pro ts for such year, as determined under item (d) or (f), exceed his average livestock pro ts (as determined under item (e) or (f)) for the years of assessment (but not exceeding ve years of assessment) which immediately precede the said year and during which the undertaking was carried on.
(d) For the purposes of this subparagraph, the taxpayer’s livestock pro ts for any year of assessment shall be the amount by which the sum of the amounts included in his income from farming for such year in respect of disposals of livestock during such year and the value (as determined under this Schedule) of the livestock held and not disposed of by him at the end of such year exceeds the sum of the amounts allowed to be deducted from such income in respect of livestock acquired by him during such year and the value (as determined under this Schedule) of the livestock held and not disposed of by him at the beginning of such year, and the taxpayer’s livestock loss for such year shall be determined accordingly.
(e) The taxpayer’s average livestock pro ts for the years of assessment referred to in item (c) shall be the sum of his livestock pro ts for the said years, as determined under item (d) (reduced by any livestock loss as determined under that item in respect of any such years), divided by the number of such years of assessment.
SAIT CompendIum oF TAx LegISLATIon VoLume 1 309
INCOME TAX ACT – SCHEDULES