Page 355 - SAIT Compendium 2016 Volume1

Sixth Schedule INCOME TAX ACT 58 OF 1962 Seventh Schedule
(a) amounts received by that registered micro business during a year of assessment;
(b) dividends declared by that registered micro business during a year of assessment;
(c) each asset of that registered micro business as at the end of a year of assessment with a cost price of more than
R10 000; and
(d) each liability of that registered micro business as at the end of a year of assessment that exceeded R10 000.
15 . . .
BENEFITS OR ADVANTAGES DERIVED BY REASON OF EMPLOYMENT OR THE HOLDING OF ANY
[Para. 15 repealed by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.] Seventh Schedule
OFFICE (paras. 1–20)
(Paragraph (i) of the de nition of ‘gross income’ in section 1 of this Act)
[Seventh Schedule added by s. 46 of Act 121 of 1984.]
DEFINITIONS (para. 1)
1. For the purposes of this Schedule, unless the context otherwise indicates—
‘associated institution’, in relation to any single employer, means—
(a) where the employer is a company, any other company which is associated with the employer company by reason of
the fact that both companies are managed or controlled directly or indirectly by substantially the same persons; or
(b) where the employer is not a company, any company which is managed or controlled directly or indirectly by the
employer or by any partnership of which the employer is a member; or
(c) any fund established solely or mainly for providing bene ts for employees or former employees of the employer or
for employees or former employees of the employer and any company which is in terms of paragraph (a) or (b) an associated institution in relation to the employer, but excluding any fund established by a trade union or industrial council and any fund established for post-graduate research otherwise than out of moneys provided by the employer or by any associated institution in relation to the employer;
‘consideration’, as respects any reference in this Schedule to any consideration given by an employee, does not include any consideration in the form of services rendered or to be rendered by the employee;
‘de ned bene t component’ means a component of a pension fund, provident fund or retirement annuity fund other than a de ned contribution component of a fund;
[De nition of ‘de ned bene t component’ inserted by s. 117 (1) (a) of Act 31 of 2013 – date of commencement: 1 March 2016 (‘1 March 2015’ replaced by ‘1 March 2016’ by s. 129 (1) of Act 43 of 2014); the inserted de nition applies iro contributions made on or after that date.]
‘de ned contribution component’ means a component of a pension fund, provident fund or retirement annuity fund in respect of which the bene t on retirement to an employee as a member of the fund has a value equal to the value of—
(a) the contributions paid by the member and by the employer in terms of the rules of the fund that determine the rates
of both their contributions at a xed rate;
(b) less such expenses as the board of that fund determines should be deducted from the contributions paid;
(c) plus any amount credited to the member’s individual account upon—
(i) the commencement of the member’s membership of the fund;
(ii) the conversion of the component of the fund to which the member belongs from a de ned bene t component
to a de ned contribution component; or
(iii) the amalgamation of that fund with any other fund, if any, other than amounts taken into account in terms of
subparagraph (d);
(d) plus any other amounts lawfully permitted, credited to or debited from the member’s individual account, if any,
as increased or decreased by fund return: Provided that the board may elect to smooth the fund return;
[De nition of ‘de ned contribution component’ inserted by s. 117 (1) (a) of Act 31 of 2013 – date of commencement: 1 March 2016 (‘1 March 2015’ replaced by ‘1 March 2016’ by s. 129 (1) of Act 43 of 2014); the inserted de nition applies iro contributions made on or after that date.]
‘employee’, in relation to any employer, means a person who is an employee in relation to such employer for the purposes of the Fourth Schedule, excluding any person who prior to 1 March 1992 by reason of superannuation, ill- health or other in rmity retired from the employ of such employer, but including, in relation to any company, any director of such company and any person who was previously employed by, or was a director of, such company if such person is or was the sole holder of shares in or one of the controlling holders of shares in such company and, for the purposes of paragraphs 2 (h) and 13, including any person who has retired as aforesaid and who, after the employee’s retirement, is released by the employee’s employer from an obligation which arose before the employee’s retirement to reimburse the employer for an amount paid by the employer on behalf of the employee or to pay any amount which became owing by the employee to the employer before the employee’s retirement;
[De nition of ‘employee’ substituted by s. 49 of Act 129 of 1991 and by s. 117 (1) (b) of Act 31 of 2013 – date of commencement: 12 December 2013.]
‘employer’ means any person who is an employer as de ned in paragraph 1 of the Fourth Schedule and includes— (a) any company; and
(b) for the purpose of paragraph 2 and the determination of the cash equivalent of the value of any taxable bene t
granted to any person who derives remuneration as de ned in the said paragraph from employment in the public
service or any administration or undertaking of the State or who holds of ce under the Republic, the State; ‘employment’ means any of ce or employment;
SAIT CompendIum oF TAx LegISLATIon VoLume 1 347
INCOME TAX ACT – SCHEDULES