Page 375 - SAIT Compendium 2016 Volume1

Eighth Schedule INCOME TAX ACT 58 OF 1962 Eighth Schedule
(b) in the case of a company or other entity, that person (whether alone or together with any connected person in relation to that person), directly or indirectly, holds at least 20 per cent of the equity shares in that company or ownership or right to ownership of that other entity.
[Item (b) substituted by s. 93 (1) of Act 7 of 2010.]
[Sub-para. (2) substituted by s. 25 (1) of Act 19 of 2001, by s. 66 (1) of Act 60 of 2001 and by s. 64 (1) of Act 31 of 2005.]
PART II
TAXABLE CAPITAL GAINS AND ASSESSED CAPITAL LOSSES (paras. 3–10)
3 Capital gain
A person’s capital gain for a year of assessment, in respect of the disposal of an asset—
(a) during that year, is equal to the amount by which the proceeds received or accrued in respect of that disposal exceed
(c)
disposals during any year of assessment commencing on or after that date.]
(i) so much of any amount received by or accrued to that person during the current year of assessment, as
constitutes part of the proceeds of that disposal which has not been taken into account—
(aa) during any year in determining the capital gain or capital loss in respect of that disposal; or (bb) in the redetermination of the capital gain or capital loss in terms of paragraph 25 (2); or
[Item (i) substituted by s. 53 (1) (a) of Act 32 of 2004.]
(ii) so much of the base cost of that asset that has been taken into account in determining the capital gain or
capital loss in respect of that disposal as has been recovered or recouped during the current year of assessment, otherwise than by way of any reduction of any debt owed by that person, and which has not been taken into account in the redetermination of the capital gain or capital loss in terms of paragraph 25 (2); or
[Item (ii) substituted by s. 53 (1) (b) of Act 32 of 2004 and by s. 103 (1) of Act 22 of 2012 – date of commencement: 1 January 2013; this substitution applies iro years of assessment commencing on or after that date.]
(iii) the sum of—
(aa) any capital gain redetermined in terms of paragraph 25 (2) in the current year of assessment in respect of
that disposal; and
(bb) any capital loss (if any) determined in respect of that disposal in terms of paragraph 25 for the last year of
assessment during which that paragraph applied in respect of that disposal; or
[Item (iii) added by s. 53 (1) (c) of Act 32 of 2004.]
in a previous year of assessment that has been reacquired as contemplated in paragraph 20 (4), is equal to any capital
loss determined in respect of that disposal.
the base cost of that asset;
[Sub-para. (a) substituted by s. 67 (1) of Act 60 of 2001.]
(b) in a previous year of assessment, other than a disposal contemplated in subparagraph (c), is equal to—
[Words preceding item (i) substituted by s. 103 (1) (b) of Taxation Laws Amendment Act, 2015 (‘other than a disposal contemplated in subparagraph (c),’ inserted) – date of commencement: 1 January 2016; this substitution applies iro
[Sub-para. (c) added by s. 103 (1) (d) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 January 2016; this addition applies iro disposals during any year of assessment commencing on or after that date.]
4 Capital loss
A person’s capital loss for a year of assessment in respect of the disposal of an asset—
(a) during that year, is equal to the amount by which the base cost of that asset exceeds the proceeds received or accrued
in respect of that disposal; or
[Sub-para. (a) substituted by s. 68 (1) (a) of Act 60 of 2001 and by s. 65 of Act 74 of 2002.]
(b) in a previous year of assessment, other than a disposal contemplated in subparagraph (c), is equal to—
[Words preceding item (i) substituted by s. 104 (1) (b) of Taxation Laws Amendment Act, 2015 (‘other than a disposal contemplated in subparagraph (c),’ inserted) – date of commencement: 1 January 2016; this substitution applies iro
disposals during any year of assessment commencing on or after that date.]
(i) so much of the proceeds received or accrued in respect of the disposal of that asset that have been taken into
account during any year in determining the capital gain or capital loss in respect of that disposal—
(aa) as that person is no longer entitled to as a result of the cancellation, termination or variation of any agreement, or due to the prescription or waiver of a claim or a release from an obligation or any other event
during the current year of assessment;
(bb) as has become irrecoverable during the current year of assessment; or
(cc) as has been repaid or has become repayable during the current year of assessment,
and which have not been taken into account in the redetermination of the capital gain or capital loss in terms of paragraph 25 (2);
[Item (i) amended by s. 68 (1) (b) of Act 60 of 2001 and by s. 54 (1) (b) of Act 32 of 2004.]
(ii) so much of any expenditure incurred during the current year of assessment in respect of that asset, which is
allowable in terms of paragraph 20 and that has not been taken into account—
(aa) during any year in determining the capital gain or capital loss in respect of that disposal; or (bb) in the redetermination of the capital gain or capital loss in terms of paragraph 25 (2); or
[Item (ii) substituted by s. 54 (1) (c) of Act 32 of 2004.]
(aa) any capital loss redetermined in terms of paragraph 25 (2) in the current year of assessment in respect of
(iii) the sum of—
that disposal; and
SAIT CompendIum oF TAx LegISLATIon VoLume 1 367
INCOME TAX ACT – SCHEDULES