Page 33 - SAIT Compendium 2016 Volume1

s 1 INCOME TAX ACT 58 OF 1962 s 1
(b) in relation to a class of shares issued by a company, in the case of any other company, an amount equal to the sum of—
[Words in para. (b) preceding sub-para. (i) substituted by s. 1 (1) (f) of Act 43 of 2014 – date of commencement: 20 January 2015.]
(i) the stated capital or share capital and share premium of that company immediately before 1 January 2011 in relation to shares in that company of that class issued by that company before that date, less so much of that stated capital or share capital and share premium as would have constituted a dividend, as de ned before that date, had the stated capital or share capital and share premium been distributed by that company immediately before that date;
(ii) the consideration received by or accrued to that company for the issue of shares of that class on or after 1 January 2011; and
(iii) if the shares of that class include or consist of shares that were converted from another class of shares of that company to that class of shares— (aa) any consideration received by or accrued to
that company in respect of that conversion;
and
(bb) the amount contemplated in subparagraph
(cc) that was determined in respect of shares of the other class of shares that were so converted,
[Sub-para. (iii) added by s. 1 (1) (g) of Act 43 of 2014 – date of commencement: 20 January 2015.]
reduced by so much of that amount as—
(aa) the company has transferred on or after 1 January 2011 for the bene t of any person holding a share in that company of that class in respect of
that share;
[Sub-para. (aa) substituted by s. 1 (1) (h) of Act 43 of 2014 – date of commencement: 20 January 2015.]
(bb) has by the date of the transfer been determined by the directors of the company or by some other person or body of persons with comparable authority to be an amount so transferred; and
[Sub-para. (bb) substituted by s. 1 (1) (h) of Act 43 of 2014 – date of commencement: 20 January 2015.]
(cc) in the case of a convertible class of shares some of the shares of which have been converted to another class of shares, so much of the amount contemplated in this paragraph in respect of that convertible class of shares immediately prior to that conversion as bears to that amount the same ratio as the number of shares so converted bears to the total number of that convertible class of shares prior to that conversion:
[Sub-para. (cc) added by s. 1 (1) (h) of Act 43 of 2014 – date of commencement: 20 January 2015.]
Provided that the amount transferred by a company as contemplated in paragraph (a) or (b) for the bene t of a person holding shares of any class of shares of that company must not exceed an amount that bears to the total of the amount of contributed tax capital attributable to that class of shares immediately before the transfer the same ratio as the number of shares of that class held by that person bears to the total number of shares of that class; [De nition of ‘contributed tax capital’ inserted by s. 4 (1) (b) of Act 60 of 2008, amended by s. 7 (1) (g) of Act 17 of 2009 and substituted by s. 6 (1) (f) of Act 7 of 2010, by
s. 7 (1) (b) of Act 24 of 2011 and by s. 7 (1) (c) of Act 24 of 2011 – date of commencement: 1 April 2012.]
‘controlled foreign company’ means a controlled foreign company as de ned in section 9D, and includes any reference in this Act, prior to the amendment thereof by the Revenue Laws Amendment Act, 2002, to a controlled foreign entity;
[De nition of ‘controlled foreign company’ inserted by s. 6 (1) (d) of Act 74 of 2002.]
‘controlled group company’ means a controlled group company contemplated in the de nition of ‘group of companies’;
[De nition of ‘controlled group company’ inserted by s. 6 (1) (d) of Act 74 of 2002.]
‘controlling group company’ means a controlling group company contemplated in the de nition of ‘group of companies’;
[De nition of ‘controlling group company’ inserted by s. 6 (1) (d) of Act 74 of 2002.]
‘co-operative’ means any association of persons registered in terms of section 27 of the Co-operatives Act, 1981 (Act 91 of 1981) or section 7 of the Co-operatives Act, 2005 (Act 14 of 2005);
[De nition of ‘co-operative’ inserted by s. 3 (1) (d) of Act 20 of 2006 and substituted by s. 3 (1) (c) of Act 8 of 2007.]
‘Copyright Act’ means the Copyright Act, 1978 (Act 98 of 1978);
[De nition of ‘Copyright Act’ inserted by s. 4 (1) (m) of Act 31 of 2013 – date of commencement: 12 December 2013.]
‘date of assessment’ . . .
[De nition of ‘date of assessment’ inserted by s. 4 (1) (b) of
Act 69 of 1975 and deleted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
‘date of deep level production’ . . .
[De nition of ‘date of deep level production’ deleted by s.
2 (1) (c) of Act 3 of 2008.] ‘date of sequestration’ means—
(a) the date of voluntary surrender of an estate, if accepted by the Court; or
(b) the date of provisional sequestration of an estate, if a nal order of sequestration is granted by the Court;
[De nition of ‘date of sequestration’ inserted by s. 12 (1) (b) of Act 45 of 2003.]
‘dependant’ . . .
[De nition of ‘dependant’ substituted by s. 4 (1) (b) of Act 88 of 1971 and by s. 4 (1) (d) of Act 85 of 1974, amended
by s. 3 (1) (a) of Act 104 of 1979 and by s. 2 (1) (c) of Act 104 of 1980 and deleted by s. 2 (b) of Act 90 of 1988.]
‘depreciable asset’ means an asset as de ned in paragraph 1 of the Eighth Schedule (other than any trading stock and any debt), in respect of which a deduction or allowance determined wholly or partly with reference to the cost or value of that asset is allowable in terms of this Act for purposes other than the determination of any capital gain or capital loss;
[De nition of ‘depreciable asset’ inserted by s. 12 (1) (b) of Act 45 of 2003 and substituted by s. 5 (1) (a) of Act 35 of 2007.]
‘designated country’ . . .
[De nition of ‘designated country’ inserted by s. 6 (1) (e)
of Act 74 of 2002 and deleted by s. 12 (1) (c) of Act 45 of 2003.]
‘Designs Act’ means the Designs Act, 1993 (Act 195 of 1993);
[De nition of ‘Designs Act’ inserted by s. 4 (1) (n) of Act 31 of 2013 – date of commencement: 12 December 2013.]
‘director’, in relation to a close corporation, means any person who in respect of such close corporation holds any of ce or performs any functions similar to the of ce or functions of a director of a company other than a close corporation;
[De nition of ‘director’ inserted by s. 2 (1) (a) of Act 96 of 1985.]
SAIT CompendIum oF TAx LegISLATIon VoLume 1
25
INCOME TAX ACT – SECTIONS