Page 377 - SAIT Compendium 2016 Volume1

Eighth Schedule INCOME TAX ACT 58 OF 1962 Eighth Schedule
(iv) risk policy fund, 66,6 per cent; or
[Item (iv) added by s. 79 (1) (c) of Act 43 of 2014 – date of commencement: 1 January 2016.] [Sub-para. (b) substituted by s. 105 (1) of Act 22 of 2012.*]
(c) in any other case, 66,6 per cent,
[Sub-para. (c) substituted s. 9 (1) of Act 13 of 2012 – date of commencement deemed to have been 1 March 2012; this
substitution applies iro years of assessment commencing on or after that date.] of that person’s net capital gain for that year of assessment.
PART III
DISPOSAL AND ACQUISITION OF ASSETS (paras. 11–14)
11 Disposals
(1) Subject to subparagraph (2), a disposal is any event, act, forbearance or operation of law which results in the creation, variation, transfer or extinction of an asset, and includes—
(a) the sale, donation, expropriation, conversion, grant, cession, exchange or any other alienation or transfer of
ownership of an asset;
(b) the forfeiture, termination, redemption, cancellation, surrender, discharge, relinquishment, release, waiver,
renunciation, expiry or abandonment of an asset;
(c) the scrapping, loss, or destruction of an asset;
(d) the vesting of an interest in an asset of a trust in a bene ciary;
(e) the distribution of an asset by a company to a holder of shares;
[Item (e) substituted by s. 126 (1) (a) of Act 31 of 2013 – date of commencement: 12 December 2013.]
(f) the granting, renewal, extension or exercise of an option; or
(g) the decrease in value of a person’s interest in a company, trust or partnership as a result of a value shifting
arrangement.†
(2) There is no disposal of an asset—
(a) by a person who transfers the asset as security for a debt or by a creditor who transfers that asset back to that person upon release of the security;
(b) by a company in respect of—
(i) the issue, cancellation or extinction of a share in the company; or
(ii) the granting of an option to acquire a share in or certi cate acknowledging or creating a debt owed by that company;
[Item (b) substituted by s. 71 (1) (a) of Act 60 of 2001, by s. 44 of Act 20 of 2006 and by s. 106 (1) (b) of Act 22 of 2012, amended by s. 126 (1) (b) of Act 31 of 2013 (date of commencement: 12 December 2013) and substituted by s. 126 (1) (c) of Act 31 of 2013 (date of commencement: 1 April 2014; the substitution applies iro shares issued on or after that date) and by s. 105 (1) (a) of Taxation Laws Amendment Act, 2015 – date of commencement also deemed to have been 1 April 2014; this substitution applies iro shares issued, cancelled or options granted on or after that date.]
(c) by a portfolio of a collective investment scheme in respect of the issue of a participatory interest in that portfolio, or by a portfolio in respect of the granting of an option to acquire a participatory interest in that portfolio;
[Item (c) substituted by s. 67 (1) (a) of Act 74 of 2002.] (d) by a person in respect of the issue of any debt by or to that person;
[Item (d) substituted by s. 106 (1) (c) of Act 22 of 2012 – date of commencement: 1 January 2013.]
Prelex
Wording of item. (b) in force from 1 April 2014 until its retrospective substitution by s. 105 (1) (a) of Taxation Laws Amendment Act, 2015, which is also deemed to have come into operation on 1 April 2014
(b) by a company in respect of—
(i) the issue, cancellation or extinction of a share in the company; or
(ii) the granting of an option to acquire a share in or certi cate acknowledging or creating a debt owed by that
company,
other than a share, option or certi cate issued to any person by a company that is a resident in exchange, directly or indirectly, for shares in a foreign company;
(e) . . .
(f) .. .
[Item (e) substituted by s. 67 (1) (b) of Act 74 of 2002 and deleted by s. 74 of Act 60 of 2008.] [Item (f) deleted by s. 71 (1) (b) of Act 60 of 2001.]
(g) by a person where a disposal is made to correct an error in the registration in the deeds registry of immovable
property in that person’s name;
[Item (g) substituted by s. 67 (1) (c) of Act 74 of 2002.]
* S. 105 (1) is—
(a) in respect of deemed disposals made by virtue of section 29B of the Income Tax Act, 1962, deemed to have come
into operation on 29 February 2012 and applies in respect of those disposals; and
(b) in respect of any disposals other than deemed disposals contemplated in paragraph (a), deemed to have come
into operation on 1 March 2012 and applies in respect of those disposals that are made on or after that date.
† Item (g) has been substituted by s. 106 (1) (a) of Act 22 of 2012; the substitution was to have come into operation on 1 January 2014 and was to apply in respect of disposals made on or after that date. The said s. 102 was, however,
retrospectively repealed wef 1 February 2013 by s. 205 of Act 31 of 2013.
SAIT CompendIum oF TAx LegISLATIon VoLume 1 369
INCOME TAX ACT – SCHEDULES