Page 378 - SAIT Compendium 2016 Volume1

Eighth Schedule INCOME TAX ACT 58 OF 1962 Eighth Schedule
(h) by a lender to a borrower or by a borrower to a lender where any security has been lent by a lender to a borrower in terms of a securities lending arrangement; or
[Item (h) amended by s. 67 (1) (d) of Act 74 of 2002 and substituted by s. 92 (1) of Act 45 of 2003.]
(i) by a person where that asset vests in the Master of the High Court or in a trustee, in consequence of the sequestration of the estate of the spouse of that person, as contemplated in section 21 of the Insolvency Act, 1936 (Act 24 of
1936), and where that asset is subsequently released by the Master or that trustee as contemplated in that section;
[Item (i) added by s. 71 (1) (c) of Act 60 of 2001.]
[Item (j) added by s. 55 (1) of Act 32 of 2004 and deleted by s. 105 (1) (b) of Taxation Laws Amendment Act, 2015 – date
(j) . . .
of commencement: 1 March 2016; this deletion applies iro years of assessment commencing on or after that date.]
Prelex
Wording of item (j) in force until the deletion thereof wef 1 March 2016
(j) which constitutes an equity instrument contemplated in section 8C, which has not yet vested as contemplated in
that section;
(k) by a person on the cession or release of a right to acquire a marketable security in whole or in part for a consideration which consists of or includes another right to acquire a marketable security in the circumstances contemplated in
(l)
section 8A (5);
[Item (k) added by s. 66 (1) of Act 31 of 2005.] by a person of shares held in a company where that company—
(i) subdivides or consolidates those shares;
(ii) converts shares of par value to no par value or of no par value to par value; or
(iii) converts shares in terms of section 40A or 40B,
solely in substitution of the shares held by that person, and—
(aa) the proportionate participation rights and interests of that person in that company remain unaltered; and
(bb) no other consideration whatsoever passes directly or indirectly in consequence of that subdivision, consolidation
or conversion;
[Item (l) added by s. 126 (1) (e) of Act 31 of 2013 – addition deemed to have come into operation on 4 July 2013 and applies iro transactions entered into on or after that date.]
(m) by a person where that person exchanges a qualifying equity share for another qualifying equity share as contemplated in section 8B (2);
[Item (m) added by s. 80 (b) of Act 43 of 2014 – date of commencement: 20 January 2015.]
(n) by a transferor to a transferee or by a transferee to a transferor where any share has been transferred in terms of a
collateral arrangement;
[Item (n) added by s. 105 (1) (d) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 January 2016; this addition applies iro any collateral arrangement entered into on or after that date.]
(o) by a person that—
(i) disposed of an asset to another person in terms of an agreement; and
(ii) reacquired that asset from that other person by reason of the cancellation or termination, during the year of assessment during which that asset was so disposed of, of that agreement and the restoration of both persons to the position they were in prior to entering into that agreement.
[Item (o) added by s. 105 (1) (e) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 January 2016; this addition applies iro disposals on or after that date.]
12 Events treated as disposals and acquisitions
(1) Where an event described in subparagraph (2) occurs, a person must, subject to paragraph 24, be treated for the purposes of this Schedule as having disposed of an asset described in subparagraph (2) for an amount received or accrued equal to the market value of the asset at the time of the event and to have immediately reacquired the asset at an expenditure equal to that market value, which expenditure must be treated as an amount of expenditure actually incurred for the purposes of paragraph 20 (1) (a).
[Sub-para. (1) substituted by s. 72 (1) (a) of Act 60 of 2001, by s. 93 (1) (a) of Act 45 of 2003, by s. 50 (1) (a) of Act 3 of 2008 and by s. 81 (a) of Act 43 of 2014 – date of commencement: 20 January 2015.]
(2) Subparagraph (1) applies, in the case of— (a) a person—
(i) that commences to be a resident; or
[Subitem (i) substituted by s. 81 (b) of Act 43 of 2014 – date of commencement: 20 January 2015.] (ii) that is a foreign company that commences to be a controlled foreign company,
[Subitem (ii) substituted by s. 81 (b) of Act 43 of 2014 – date of commencement: 20 January 2015.] (iii) . . .
[Subitem (iii) deleted by s. 81 (c) of Act 43 of 2014 – date of commencement: 20 January 2015.] in respect of all assets of that person other than—
(aa) assets in the Republic listed in paragraph 2 (1) (b) (i) and (ii);
(bb) any right to acquire any marketable security contemplated in section 8A;
[Item (a) substituted by s. 93 (1) (b) of Act 45 of 2003 and by s. 56 (1) of Act 32 of 2004 and amended by s. 67 (1) (a) and
(b) of Act 31 of 2005, by s. 50 (1) (b) of Act 3 of 2008 and by s. 108 (1) (a) and (b) of Act 24 of 2011 and by s. 107 (1) (a) of Act 22 of 2012 (date of commencement deemed to have been 1 April 2012; this amendment applied iro disposals made on or after that date) and substituted by s. 107 (1) (b) of Act 22 of 2012 – date of commencement deemed to have been 8 May 2012; this substitution applies iro disposals made on or after that date.]
370 SAIT CompendIum oF TAx LegISLATIon VoLume 1