Page 383 - SAIT Compendium 2016 Volume1

Eighth Schedule INCOME TAX ACT 58 OF 1962 Eighth Schedule
(2) Subparagraph (1) does not apply in respect of an option to acquire or dispose of—
(a) a coin made mainly from gold or platinum, of which the market value is mainly attributable to the material from
which it is minted or cast;
(b) immovable property, other than immovable property—
(i) in the case of subparagraph (1) (a), which is intended to be the primary residence of the person entitled to exercise the option; or
(ii) in the case of subparagraph (1) (b), is the primary residence of the person entitled to exercise the option;
(c) a nancial instrument; or
(d) any right or interest in those assets contemplated in items (a), (b) and (c).
[Sub-para. (2) amended by s. 74 (1) of Act 60 of 2001.]
19 Losses on the disposal of certain shares
(1) Where a person disposes of a share in a company—
(a) as a result of the acquisition by the company from that person of that share or as part of the liquidation, winding-up
or deregistration of that company, that person must disregard so much of any capital loss resulting from the disposal
as does not exceed any exempt dividends; or
(b) in circumstances other than those contemplated in item (a), that person must disregard so much of any capital loss
resulting from the disposal (other than a disposal deemed to have taken place in terms of section 29B) as does not
exceed any extraordinary exempt dividends,
[Item (b) substituted by s. 110 (1) of Act 22 of 2012 – date of commencement deemed to have been 29 February 2012; this substitution applies iro disposals made on or after that date.]
received by or accrued to that person in respect of that share within a period of 18 months prior to or as part of the disposal.
[Sub-para. (1) substituted by s. 72 (1) (a) of Act 35 of 2007, by s. 69 (1) (a) of Act 17 of 2009 (date of commencement of substitution: 1 April 2012) and by s. 109 (1) (a) of Act 24 of 2011 – date of commencement of substitution: 1 April 2012.]
(2) . . .
[Sub-para. (2) substituted by s. 94 (a) of Act 45 of 2003 and deleted by s. 72 (1) (b) of Act 35 of 2007.] (3) For the purposes of this paragraph—
(a)
(b)
the period of 18 months does not include any days during which the person disposing of a share—
[Words preceding subitem (i) in item (a) amended by s. 69 (1) (b) of Act 17 of 2009 – date of commencement of amendment: 1 April 2012.]
(i) has an option to sell, is under a contractual obligation to sell, or has made (and not closed) a short sale of, substantially similar nancial instruments;
(ii) is the grantor of an option to buy substantially similar nancial instruments; or
(iii) has otherwise diminished risk of loss with respect to that share by holding one or more contrary positions with
respect to substantially similar nancial instruments;
‘exempt dividend’ means any dividend or foreign dividend to the extent that the dividend or foreign dividend is—
(i) not subject to any tax under Part VIII of Chapter II; and
(ii) exempt from normal tax in terms of section 10 (1) (k) (i) or section 10B (2) (a) or (b);
[Item (b) (previously ‘dividend’) amended by s. 94 (b) of Act 45 of 2003 and by s. 69 (1) (bC) of Act 17 of 2009 and substituted by s. 109 (1) (b) of Act 24 of 2011 – date of commencement of substitution: 1 April 2012.]
(c) ‘extraordinary exempt dividends’ means so much of the amount of the aggregate of any exempt dividends received or accrued within the period of 18 months contemplated in subparagraph (1) as exceeds 15 per cent of the proceeds received or accrued from the disposal contemplated in that subparagraph.
[Item (c) (previously ‘extraordinary dividend’) substituted by s. 69 (1) (d) of Act 17 of 2009 (date of commencement of substitution: 1 April 2012) and by s. 109 (1) (b) of Act 24 of 2011 (date of commencement of substitution: 1 April 2012).]
(d) . . .
20 Base cost of asset
[Item (d) deleted by s. 94 (c) of Act 45 of 2003.] PART V
BASE COST (paras. 20–34)
(1) Despite section 23 (b) and (f), but subject to paragraphs 24, 25 and 32 and subparagraphs (2) and (3), the base cost of an asset acquired by a person is the sum of—
(a) the expenditure actually incurred in respect of the cost of acquisition or creation of that asset;
(b) the expenditure actually incurred in respect of the valuation of the asset for the purpose of determining a capital gain
or capital loss in respect of the asset;
(c) the following amounts actually incurred as expenditure directly related to the acquisition or disposal of that asset namely—
(i) the remuneration of a surveyor, valuer, auctioneer, accountant, broker, agent, consultant or legal advisor, for services rendered;
(ii) transfer costs;
(iii) stamp duty, transfer duty, tax payable in terms of the Securities Transfer Tax Act, 2007 (Act 25 of 2007), or
similar duty or tax;
[Subitem (iii) substituted by s. 108 (1) (a) of Taxation Laws Amendment Act, 2015 (‘, tax payable in terms of the Securities Transfer Tax Act, 2007 (Act 25 of 2007),’ and ‘or tax’ inserted) – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
(iv) advertising costs to nd a seller or to nd a buyer;
(v) the cost of moving that asset from one location to another;
SAIT CompendIum oF TAx LegISLATIon VoLume 1 375
INCOME TAX ACT – SCHEDULES