Page 381 - SAIT Compendium 2016 Volume1

Eighth Schedule INCOME TAX ACT 58 OF 1962 Eighth Schedule
(A) the debt was reduced as part of any transaction, operation or scheme entered into to avoid any tax imposed by this Act; and
(B) that company became a connected person in relation to the person to whom the debt is owed after the debt (or any debt issued in substitution of that debt) arose; or
(bb) if that company—
(A) has not, within 36 months of the date on which the debt is reduced or such further period as the
Commissioner may allow, taken the steps contemplated in section 41 (4) to liquidate, wind up, deregister
or nally terminate its existence;
(B) has at any stage withdrawn any step taken to liquidate, wind up deregister or nally terminate its corporate
existence; or
(C) does anything to invalidate any step contemplated in subparagraph (A), with the result that the company is
or will not be liquidated, wound up, deregistered or nally terminate its existence.
(7) Any tax which becomes payable as a result of the application of paragraph (bb) of the proviso to subparagraph (6) (e) must be recovered from the company and the connected person contemplated in that subparagraph who must be
jointly and severally liable for that tax.
[Para. 12A inserted by s. 108 (1) of Act 22 of 2012 – date of commencement: 1 January 2013; this insertion applies iro years of assessment commencing on or after that date.]
13 Time of disposal
(1) The time of disposal of an asset by means of—
(a)
a change of ownership effected or to be effected from one person to another because of an event, act, forbearance or by the operation of law is, in the case of—
(i) an agreement subject to a suspensive condition, the date on which the condition is satis ed;
(ii) any agreement which is not subject to a suspensive condition, the date on which the agreement is concluded;
(iiA) the distribution of an asset of a trust by a trustee to a bene ciary to the extent that the bene ciary has a vested interest in the asset, the date on which the interest vests;
[Subitem (iiA) inserted by s. 76 (a) of Act 60 of 2008.]
(iiB) the granting by a trust to a bene ciary of an equity instrument contemplated in section 8C, the time that equity
instrument vests in that bene ciary as contemplated in that section;
[Subitem (iiB) inserted by s. 107 (1) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 March 2016; this insertion applies iro years of assessment commencing on or after that date.]
(iii) a donation of an asset, the date of compliance with all legal requirements for a valid donation;
(iv) the expropriation of an asset, the date on which the person receives the full compensation agreed to or nally
determined by a competent tribunal or court;
(v) the conversion of an asset, the date on which that asset is converted;
(vi) the granting, renewal or extension of an option, the date on which the option is granted, renewed or extended;
(vii) the exercise of an option, the date on which the option is exercised;
(viii) the termination of an option granted by a company to a person to acquire a share, participatory interest or debenture of that company, the date on which that option terminates; or
[Subitem (viii) substituted by s. 57 (1) of Act 32 of 2004.]
(ix) any other case, the date of change of ownership;
[Item (a) amended by s. 69 (1) (b) of Act 74 of 2002.]
(b) the extinction of an asset including by way of forfeiture, termination, redemption, cancellation, surrender, discharge,
relinquishment, release, waiver, renunciation, expiry or abandonment, the date of the extinction of the asset;
(c) the scrapping, loss or destruction of an asset is the date—
(i) when the full compensation in respect of that scrapping, loss or destruction is received; or
(ii) if no compensation is payable, the later of the date when the scrapping, loss or destruction is discovered or the
date on which it is established that no compensation will be payable;
(d) . . .
[Item (d) deleted by s. 76 (b) of Act 60 of 2008.]
(e) the distribution of an asset by a company to a holder of shares, is the date on which that asset is so distributed as
contemplated in paragraph 75;
[Item (e) substituted by s. 128 of Act 31 of 2013 – date of commencement: 12 December 2013.]
(f) the decrease of a person’s interest in a company, trust or partnership as a result of a value shifting arrangement, is
the date on which the value of that person’s interest decreases; or*
(g) the happening of an event contemplated in—
(i) paragraph 12 (2) (a), (b), (c), (d) or (e), 12 (3) or 12 (4), is the date immediately before the day that the event occurs; or
[Subitem (i) substituted by s. 51 of Act 3 of 2008 and by s. 68 (1) of Act 17 of 2009.]
(ii) paragraph 12 (2) (f), is the date that that event occurs.
[Subitem (ii) substituted by s. 109 (1) (b) of Act 22 of 2012 – date of commencement: 1 January 2013; the substituted
subitem applies iro years of assessment commencing on or after that date.]
* Item (f) has been substituted by s. 109 (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. 109 (1) (a) was, however, retrospectively repealed wef 1 February 2013 by s. 206 of Act 31 of 2013.
SAIT CompendIum oF TAx LegISLATIon VoLume 1 373
INCOME TAX ACT – SCHEDULES