Page 38 - SAIT Compendium 2016 Volume1

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INCOME TAX ACT 58 OF 1962 s 1
sum exceeding one-third of the capitalised value of all bene ts (including lump sum payments and annuities); or
(iii) any amount in a fund contemplated in paragraph (a) or (b) of the de nition of ‘pension fund’ has become payable to the member or is being utilised to redeem a debt,
[Sub-para. (iii) added by s. 19 (1) (i) of Act 30 of 1998.] an amount equal to two-thirds—
(aa) of the amount so transferred; or
(bb) in the case of a conversion, of the amount
representing the amount converted for the bene t or ultimate bene t of the member or the dependants or nominees of the deceased member, and such amount shall be deemed to have been received by or accrued to or in favour of such member, dependants or nominees, as the case may be: Provided that where a court granting a decree of divorce in respect of such member has made an order that any part of such amount shall be paid to the former spouse of such member, as provided for in section 7 (8) of the Divorce Act, 1979 (Act 70 of 1979), such part shall for the purposes of this paragraph be deemed to be an amount converted for the bene t or ultimate bene t of such member; or
[Sub-para. (bb) substituted by s. 10 (1) (i) of Act 53 of 1999 and amended by s. 17 (1) (b) of Act 60 of 2001.]
(cc) in the case of an amount becoming payable to a member or being utilised to redeem a debt, of the amount so payable or so utilised:
[Item (cc) added by s. 19 (1) (k) of Act 30 of 1998.] Provided that the Commissioner may, on application by a fund, in particular circumstances, increase the proportion of one-third contemplated in subparagraph (i) up to a maximum of one-half on the following conditions:
(a) that on 12 March 1997 the proportion of the bene t on retirement in such fund that could be taken in the form of a lump sum was greater than one-third, but not greater than one-half, of the total capitalized value of all bene ts;
(b) that the rules of such fund are amended so that the maximum proportion of such member’s bene t on retirement that can be taken in the form of a lump sum is one-third of the total capitalized value of all bene ts; and
(c) such further conditions as the Commissioner may determine from time to time;
[Para. (eA) inserted by s. 4 (1) (a) of Act 90 of 1972, substituted by s. 4 (1) (a) of Act 65 of 1973, deleted by
s. 2 (1) (f) of Act 113 of 1993, inserted by s. 2 (1) (h) of Act 28 of 1997 and amended by s. 19 (1) (g) of Act 30 of 1998.]
(eB). . .
[Para. (eB) inserted by s. 13 (1) (g) of Act 30 of 2000,
substituted by s. 2 (1) (n) of Act 3 of 2008 and deleted by s. 7 (1) (i) of Act 17 of 2009.]
(eC). . .
[Para. (eC) inserted by s. 4 (1) (f) of Act 60 of 2008 and
deleted by s. 7 (1) (j) of Act 17 of 2009.]
(f) any amount received or accrued in commutation of amounts due under any contract of employment or
service;
(g) any amount received or accrued from another person,
as a premium or consideration in the nature of a
premium—
[Words in para. (g) preceding sub-para. (i) substituted by s. 7 (1) (r) of Act 24 of 2011 – commencement date:
1 April 2012.]
(i) for the use or occupation or the right of use or occupation of land or buildings; or
(ii) for the use or the right of use of plant or machinery; or
(ii)bis for the use or the right of use of any motion picture lm or any lm or video tape or disc for use in connection with television or any sound recording or advertising matter connected with such motion picture lm, lm or video tape or disc; or
(iii) for the use or right of use of any patent as de ned in the Patents Act or any design as de ned in the Designs Act or any trade mark as de ned in the Trade Marks Act or any copyright as de ned in the Copyright Act or any model, pattern, plan, formula or process or any other property or right of a similar nature;
[Sub-para. (iii) substituted by s. 2 (1) (a) of Act 129 of 1991, by s. 10 (1) (j) of Act 53 of 1999 and by s. 4 (1) (r) of Act 31 of 2013 – date of commencement: 12 December 2013.]
[Para. (g) amended by s. 3 (f) and (g) of Act 90 of 1962 and by s. 6 (1) (b) of Act 89 of 1969 and substituted by
s. 4 (1) (b) of Act 65 of 1973.]
(gA) any amount received or accrued from another person as consideration for the imparting of or the undertaking to impart any scienti c, technical, industrial or commercial knowledge or information, or for the rendering of or the undertaking to render any assistance or service in connection with the application or utilization of such knowledge or information;
[Para. (gA) inserted by s. 4 (1) (c) of Act 65 of 1973 and substituted by s. 2 (d) of Act 59 of 2000 and by s. 7 (1) (s) of Act 24 of 2011 – commencement date: 1 April 2012.] (h) in the case of any person to whom, in terms of any
agreement relating to the grant to any other person of the right of use or occupation of land or buildings, or by virtue of the cession of any rights under any such agreement, there has accrued in any such year or period the right to have improvements effected on the land or to the buildings by any other person—
(i) the amount stipulated in the agreement as the value of the improvements or as the amount to be expended on the improvements; or
(ii) if no amount is so stipulated, an amount representing the fair and reasonable value of the improvements;
[Sub-para. (ii) substituted by s. 2 (1) (g) of Act 113 of 1993.]
(i)
the cash equivalent, as determined under the provisions of the Seventh Schedule, of the value during the year of assessment of any bene t or advantage granted in respect of employment or to the holder of any of ce, being a taxable bene t as de ned in the said Schedule, and any amount required to be included in the taxpayer’s income under section 8A;
[Para. (i) substituted by s. 6 (1) (c) of Act 89 of 1969, by s. 6 (a) of Act 52 of 1970 and by s. 2 (1) (g) of Act 121 of 1984.]
(j) so much of the sum of any amounts received or accrued during any year of assessment in respect of disposals of assets the cost of which has in whole or in part been included in capital expenditure taken into account (whether under this Act or any previous Income Tax Act) for the purposes of any deduction in respect of any mine under section 15 (a) of this Act or the corresponding provisions of any previous Income Tax Act, as exceeds the sum of so much of
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SAIT CompendIum oF TAx LegISLATIon VoLume 1