Page 384 - SAIT Compendium 2016 Volume1

Eighth Schedule INCOME TAX ACT 58 OF 1962 Eighth Schedule
(vi) the cost of installation of that asset, including the cost of foundations and supporting structures;
(vii) despite section 23 (d), in the case of a disposal of an asset by a person by way of a donation as contemplated in paragraph 38, so much of any donations tax payable by that person in respect of that donation, as determined
in accordance with paragraph 22;
(viii) despite section 23 (d), if that person acquired that asset by way of a donation and the donations tax levied in
respect of that donation was paid by that person, so much of the donations tax which bears to the full amount of the donations tax so payable the same ratio as the capital gain of the donor determined in respect of that donation, bears to the market value of that asset on the date of that donation; and
[Subitem (viii) substituted by s. 26 (1) (a) of Act 19 of 2001.]
(ix) if that asset was acquired or disposed of by the exercise of an option (other than the exercise of an option
contemplated in item (f)), the expenditure actually incurred in respect of the acquisition of the option; [Subitem (ix) substituted by s. 26 (1) (a) of Act 19 of 2001.]
(d) the expenditure actually incurred for purposes of establishing, maintaining or defending a legal title to or right in that asset;
(e) the expenditure actually incurred in effecting an improvement to or enhancement of the value of that asset, if that improvement or enhancement is still re ected in the state or nature of that asset at the time of its disposal;
(f) if that asset was acquired or disposed of by the exercise on or after valuation date of an option acquired prior to the valuation date, the valuation date value of that option, which value must be treated as expenditure actually incurred in respect of that asset on valuation date for the purposes of this Part;
[Item (f) substituted by s. 75 (1) (b) of Act 60 of 2001 and by s. 71 (1) (a) of Act 74 of 2002.]
(g) one-third of the interest as contemplated in section 24J excluding any interest contemplated in section 24O on money borrowed to nance the expenditure contemplated in items (a) or (e) in respect of a share listed on a recognised exchange or a participatory interest in a portfolio of a collective investment scheme (including money borrowed to
re nance those borrowings);
[Item (g) amended by s. 26 (1) (b) of Act 19 of 2001, by ss. 71 (1) (b) and (c) of Act 74 of 2002, by s. 95 (1) (a) of Act 45 of 2003 and by s. 58 (1) (a) and (b) of Act 32 of 2004 and substituted by s. 130 (1) (a) of Act 31 of 2013 – date of commencement: 1 January 2014; the substitution applies iro disposals made on or after that date.]
(h) in the case of—
(i) a marketable security or an equity instrument, the acquisition or vesting, as the case may be, of which resulted
in the determination of any gain or loss to be included in or deducted from any person’s income in terms of section 8A or 8C, the market value of that marketable security or equity instrument or amount received or accrued from the disposal thereof, as the case may be, that was taken into account in determining the amount of that gain or loss (including where the gain and loss so determined was nil);
[Item (i) substituted by s. 26 (1) (c) of Act 19 of 2001, by s. 58 (1) (c) of Act 32 of 2004 and by s. 68 (1) (a) of Act 31 of 2005.] (ii) any other asset—
(aa) so much of an amount that has been included in that person’s income in terms of section 8 (5), as having been applied towards the reduction of the purchase price of that asset;
(bb) where an amount has been included in any person’s gross income in terms of paragraph (i) of the de nition of ‘gross income’ in section 1, the value placed on the asset under the Seventh Schedule for purposes of determining the amount so included in that person’s gross income;
[Sub-subitem (bb) substituted by s. 73 (a) of Act 35 of 2007.]
(cc) where an amount has been included in that person’s gross income in terms of paragraph (h) of the de nition
of ‘gross income’ in section 1 in respect of that asset, so much of that amount so included as exceeds the
amount of any allowance granted to that person in terms of section 11 (h); or
(dd) where an amount has been included in that person’s gross income in terms of paragraph (c) of the de nition
of ‘gross income’ in section 1, the value placed on the asset for the purposes of determining the amount so included in that person’s gross income;
[Sub-subitem (dd) added by s. 68 (1) (c) of Act 31 of 2005.]
[Subitem (ii) substituted by s. 26 (1) (c) of Act 19 of 2001 and by s. 71 (1) (d) of Act 74 of 2002.]
(iii) (aa) a right in a controlled foreign company held directly by a resident, an amount equal to the proportional amount of the net income (without having regard to the percentage adjustments contemplated in paragraph 10) of that company and of any other controlled foreign company in which that controlled foreign company and that resident directly or indirectly have an interest, which was included in the income of that resident in terms of section 9D during any year of assessment, reduced by the amount of any foreign dividend distributed by that company to that resident during any year of assessment which was exempt from tax in terms of section 10B (2) (a) or (c); or
[Subsubitem (aa) substituted by s. 77 (1) (a) of Act 60 of 2008, by s. 110 (1) of Act 24 of 2011 (date of commencement: 1 April 2012; this substitution applies iro disposals made on or after that date) and by s. 108 (1) (b) of Taxation Laws Amendment Act, 2015 (‘less’ replaced by ‘reduced by’ and ‘(b)’ replaced by ‘(c)’) – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
(bb) a right in a controlled foreign company held directly by another controlled foreign company, an amount equal to the proportional amount of the net income (without having regard to the percentage adjustments contemplated in paragraph 10) of that rst-mentioned controlled foreign company and of any other controlled foreign company in which both the rst- and second-mentioned controlled foreign companies directly or indirectly have an interest, which during any year of assessment would have been included in the income of that second-mentioned controlled foreign company in terms of section 9D had it been a resident, reduced by the amount of any foreign dividend distributed by that rst-mentioned controlled foreign company to the second-mentioned controlled foreign company if that dividend would have been
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SAIT CompendIum oF TAx LegISLATIon VoLume 1