Page 37 - SAIT Compendium 2016 Volume1

s 1 INCOME TAX ACT 58 OF 1962 s 1
(i) the provisions of this paragraph shall not apply in respect of any bene t or advantage in respect of which the provisions of paragraph (i) apply;
[Sub-para. (i) substituted by s. 2 (1) (b) of Act 96 of 1985.] (ii) any amount received by or accrued to or for the bene t of any person in respect of services rendered or to be rendered by any other person shall for the purposes of this de nition be deemed to have been received by or to have
accrued to the said other person; (iii) to (vi) inclusive . . .
[Sub-paras. (iii) to (vi) inclusive deleted by s. 9 (a) of Act 30 of 2002.]
[Para. (c) amended by s. 3 (d) of Act 90 of 1962, by s. 5 (a) of Act 55 of 1966 and by s. 4 (1) (h) of Act 69 of 1975 and substituted by s. 2 (1) (f) of Act 121 of 1984.]
(cA) any amount received by or accrued to any person who—
(i) . . .
[Sub-para. (i) deleted by s. 1 (1) (k) of Act 43 of 2014 – date of commencement: 1 March 2015.]
(ii) is or was a labour broker as de ned in the Fourth Schedule (other than a labour broker in respect of which a certi cate of exemption has been issued in terms of that Schedule);
(iii) is or was a personal service provider as de ned in the Fourth Schedule; or
[Sub-para. (iii) substituted by s. 4 (1) (e) of Act 60 of 2008.] (iv) was a personal service company or personal service trust as de ned in the Fourth Schedule prior to section 66 of the Revenue Laws
Amendment Act, 2008, coming into operation,
[Sub-para. (iv) substituted by s. 4 (1) (e) of Act 60 of 2008.] as consideration for any restraint of trade imposed on such person;
[Words in para. (cA) following sub-para. (iv) substituted by s. 7 (1) (o) of Act 24 of 2011 – date of commencement: 1 April 2012.]
[Para. (cA) inserted by s. 13 (1) (f) of Act 30 of 2000.] (cB)any amount received by or accrued to any natural person as consideration for any restraint of trade
imposed on that person in respect or by virtue of— (i) employment or the holding of any of ce; or
(ii) any past or future employment or the holding of an of ce;
[Para. (cB) inserted by s. 1 (1) (l) of Act 43 of 2014 – date of commencement: 1 March 2015.]
(d) any amount (other than an amount contemplated in paragraph (a)), including any voluntary award, received or accrued—
(i) in respect of the relinquishment, termination, loss, repudiation, cancellation or variation of any of ce or employment or of any appointment (or right or claim to be appointed) to any of ce or employment;
(ii) by or to a person, or dependant or nominee of the person, directly or indirectly in respect of proceeds from a policy of insurance where the person is or was an employee or director of the policyholder; or
[Sub-para. (ii) substituted by s. 2 (1) (o) of Act 22 of 2012 – substitution deemed to have come into operation on 1 March 2012 and applies in respect of amounts received or accrued on or after that date.]
(iii) by or to a person, or dependant or nominee of the person, in respect of any policy of insurance
(other than a risk policy with no cash value or surrender value) that has been ceded to—
(aa) the person; or
(bb) a dependant or nominee of the person,
(cc) . . .
[Item (cc) deleted by s. 2 (1) (p) of Act 22 of 2012 –
deletion deemed to have come into operation on 1 March 2012 and applies in respect of amounts received or accrued on or after that date.]
for the bene t of the person, or dependant or nominee of the person, by—
(A) the employer or former employer of the
person; or
(B) the company of which the person is or was a
director: Provided that—
(aa) the provisions of subparagraphs (i) and (ii) shall not apply to any lump sum award from any pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund;
(bb) any such amount which becomes payable in consequence of or following upon the death of any person shall be deemed to be an amount which accrued to such person immediately prior to his or her death;
(cc) for the purposes of subparagraphs (ii) and (iii), any amount received by or accrued to a dependant or nominee of a person shall be deemed to be received by or to accrue to that person;
[Para. (d) amended by s. 2 (1) (b) of Act 65 of 1986 and substituted by s. 7 (1) (p) of Act 24 of 2011 – date of commencement: 1 March 2012. This substitution applies in respect of receipts and accruals on or after that date.]
(e)
a retirement fund lump sum bene t or retirement fund lump sum withdrawal bene t other than any amount included under paragraph (eA);
[Para. (e) amended by s. 3 (e) of Act 90 of 1962, by
s. 4 (a) of Act 72 of 1963, by s. 2 (1) (b) of Act 94 of 1983, by s. 2 (1) (g) of Act 28 of 1997, by s. 19 (1) (e) and (f) of Act 30 of 1998, by s. 3 (a) of Act 19 of 2001 and by
s. 3 (1) (e) of Act 8 of 2007 and substituted by s. 2 (1) (m) of Act 3 of 2008 and by s. 7 (1) (q) of Act 24 of 2011 – date of commencement: 10 January 2012.]
(eA)where, in relation to a member who effectively remains in the employment of the same employer, or the dependants or nominees of a deceased member—
(i)any amount in a fund contemplated in paragraph (a) or (b) of the de nition of ‘pension fund’, the rules of which provide that on retirement of such member a portion of his bene t has to be taken in the form of an annuity, has been transferred to a fund, the rules of which entitle such member, or the dependants or nominees of a deceased member, to a bene t on retirement in the form of a lump sum exceeding one-third of the capitalised value of all bene ts (including lump sum payments and annuities); or
(ii) a fund contemplated in paragraph (a) or (b) of the de nition of ‘pension fund’, the rules of which provide that on retirement of such member a portion of his bene t has to be taken in the form of an annuity, is wholly or partially converted by way of an amendment to its rules or otherwise, to entitle such member, or the dependants or nominees of a deceased member, to a bene t on retirement in the form of a lump
SAIT CompendIum oF TAx LegISLATIon VoLume 1
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INCOME TAX ACT – SECTIONS