Page 34 - SAIT Compendium 2016 Volume1

s 1 INCOME TAX ACT 58 OF 1962 s 1
‘dividend’ means any amount transferred or applied by a company that is a resident for the bene t or on behalf of any person in respect of any share in that company, whether that amount is transferred or applied—
(a) by way of a distribution made by; or
(b) as consideration for the acquisition of any share in, that company, but does not include any amount so transferred or applied to the extent that the amount so transferred or applied—
(i) results in a reduction of contributed tax capital of the company;
(ii) constitutes shares in the company; or
(iii) constitutes an acquisition by the company of its own
securities by way of a general repurchase of securities as contemplated in subparagraph (b) of paragraph 5.67 (B) of section 5 of the JSE Limited Listings Requirements, where that acquisition complies with any applicable requirements prescribed by paragraphs 5.68 and 5.72 to 5.84 of section 5 of the JSE Limited Listings Requirements;
[De nition of ‘dividend’ amended by s. 3 (c) of Act 90
of 1962, substituted by s. 4 (1) (e) of Act 85 of 1974, amended by s. 4 (1) (c), (d), (e), (f) and (g) of Act 69 of 1975, by s. 4 (1) (a) and (b) of Act 113 of 1977, by s. 3 (1) (b) of Act 101 of 1978, by s. 1 (1) (b) of Act 108 of 1986, by s. 2 (1) (c) and (d) of Act 113 of 1993, by s. 10 (1) (b) of Act 53 of 1999, by s. 10 (1) (c), (d), (e), (f), (g) and (h) of Act 53 of1999,bys.13(1)(e)ofAct30of2000,bys.6(1)(f)and (g) of Act 74 of 2002, by s. 12 (1) (d) of Act 45 of 2003, by s. 3 (1) (d) of Act 32 of 2005, by s. 19 of Act 9 of 2006, by s. 3 (1) (e) and (f) of Act 20 of 2006, by s. 5 (1) (b), (c), (d), (e), (f), (g), (h), (i), (j), (k), (l), (m), (n), (o) and (p) of Act 35 of 2007, by s. 2 (1) (e), (f), (g), (h) and (i) of Act 3 of 2008 and by s. 7 (1) (gA) of Act 17 of 2009, substituted by s. 7 (1) (h) of Act 17 of 2009, amended by s.7 (1) (f) of Act 24 of 2011 and substituted by s. 7 (1) (g) of Act 24 of 2011 – date of commencement: 1 April 2012.]
‘domestic company’ . . .
[De nition of ‘domestic company’ inserted by s. 4 (1) (f) of
Act 85 of 1974 and deleted by s. 2 (a) of Act 59 of 2000.] ‘domestic treasury management company’ means a
company—
(a) incorporated or deemed to be incorporated by or
under any law in force in the Republic;
(b) that has its place of effective management in the
Republic; and
(c) that is not subject to exchange control restrictions by
virtue of being registered with the nancial surveillance
department of the South African Reserve Bank;
[De nition of ‘domestic treasury management company’ inserted by s. 4 (1) (o) of Act 31 of 2013 – inserted de nition deemed to have come into operation on
27 February 2013 and applies in respect of years of assessment commencing on or after that date.]
‘entertainment expenditure’ . . .
[De nition of ‘entertainment expenditure’ inserted by
s. 2 (1) (e) of Act 121 of 1984 and deleted by s. 2 (1) (j) of Act 3 of 2008.]
‘equity share’ means any share in a company, excluding any share that, neither as respects dividends nor as respects returns of capital, carries any right to participate beyond a speci ed amount in a distribution;
[De nition of ‘equity share’, previously ‘equity share capital’, substituted by s. 3 (1) (d) of Act 8 of 2007, by s. 6 (1) (g) of Act 7 of 2010, by s. 7 (1) (h) of Act 24 of 2011 and by s. 7 (1) (i) of Act 24 of 2011 – date of commencement: 1 April 2012.]
‘Estate Duty Act’ means the Estate Duty Act, 1955 (Act 45 of 1955);
[De nition of ‘Estate Duty Act’ inserted by s. 1 (1) (i) of Act 43 of 2014 – 20 January 2015.]
‘executor’ means any person to whom letters of administration have been granted by a Master or an Assistant Master of the High Court appointed under the Administration of Estates Act, 1965 (Act 66 of 1965), in respect of the estate of a deceased person under any law relating to the administration of estates, and includes a person acting or authorized to act under letters of administration granted outside the Republic but signed and sealed by such a Master or Assistant Master for use within the Republic and, in any case where the estate is not required to be administered under the supervision of such a Master or Assistant Master, the person administering the estate;
[De nition of ‘executor’ substituted by s. 2 (1) (f) of Act 28 of 1997.]
‘external company’ . . .
[De nition of ‘external company’ inserted by s. 4 (1) (i) of Act 85 of 1974 and deleted by s. 2 (b) of Act 59 of 2000.]
‘ nancial instrument’ includes—
(a) a loan, advance, debt, bond, debenture, bill, share,
promissory note, banker’s acceptance, negotiable certi cate of deposit, deposit with a nancial institution, a participatory interest in a portfolio of a collective investment scheme, or a similar instrument;
[Para. (a) substituted by s. 7 (1) (j) of Act 24 of 2011 – date of commencement: 1 January 2012.]
(b) (c)
any repurchase or resale agreement, forward purchase arrangement, forward sale arrangement, futures contract, option contract or swap contract;
any other contractual right or obligation the value of which is determined directly or indirectly with reference to—
(i) a debt security or equity;
(ii) any commodity as quoted on an exchange; or
(iii) a rate index or a speci ed index;
[Para. (c) substituted by s. 3 (1) (a) of Act 32 of 2004.] (d) any interest-bearing arrangement; and
(e) any nancial arrangement based on or determined
with reference to the time value of money or cash
ow or the exchange or transfer of an asset;
[De nition of ‘ nancial instrument’ inserted by s. 6 (1) (h) of Act 74 of 2002.]
‘Financial Markets Act’ means the Financial Markets Act, 2012 (Act 19 of 2012);
[De nition of ‘Financial Markets Act’ inserted by s. 4 (1) (p) of Act 31 of 2013 – inserted de nition deemed to have come into operation on 3 June 2013.]
‘Financial Services Board’ means the board established by the Financial Services Board Act;
[De nition of ‘Financial Services Board’ inserted by s. 1 (1) (j) of Act 43 of 2014 – 20 January 2015.]
‘Financial Services Board Act’ means the Financial Services Board Act, 1990 (Act 97 of 1990);
[De nition of ‘Financial Services Board Act’ inserted by s. 1 (1) (j) of Act 43 of 2014 – date of commencement: 20 January 2015.]
‘ nancial year’, in relation to any company, means— (a) the period, whether of 12 months or not, commencing upon the date of incorporation or creation of such company and ending upon the last day of February immediately succeeding such date or upon such other date as the Commissioner having regard to the
circumstances of the case may approve; or
(b) any period subsequent to the period referred to in paragraph (a), whether of 12 months or not, commencing immediately after the last day of the immediately preceding nancial year of such company and ending upon the rst anniversary of such last day or upon such other date as the
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SAIT CompendIum oF TAx LegISLATIon VoLume 1