Page 39 - SAIT Compendium 2016 Volume1

s 1
INCOME TAX ACT 58 OF 1962 s 1
any capital expenditure as in the case of such mine is unredeemed at the commencement of the said year of assessment and the capital expenditure that is incurred during that year in respect of such mine, as determined before applying the de nition of ‘capital expenditure incurred’ in section 36 (11);
[Para. (j) substituted by s. 6 (1) (d) of Act 89 of 1969, by s. 4 (1) (d) of Act 65 of 1973, by s. 4 (1) (j) of Act 85 of 1974, by s. 2 (1) (c) of Act 94 of 1983 and by s. 2 (b) of Act 141 of 1992.]
(jA) any amount received by or accrued to any person during the year of assessment in respect of the disposal of any asset manufactured, produced, constructed or assembled by that person, which is similar to any other asset manufactured, produced, constructed or assembled by that person for purposes of manufacture, sale or exchange by that person or on that person’s behalf;
was retrospectively deleted by s. 159 (1) (a) of Act 24 of 2011 – date of commencement: (also) the commencement of years of assessment commencing on or after 1 January 2011.]
(n) any amount which in terms of any other provision of this Act is speci cally required to be included in the taxpayer’s income and that amount must—
(i) for the purposes of this paragraph be deemed to have been received by or to have accrued to the taxpayer; and
(ii) in the case of any amount required to be included in the taxpayer’s income in terms of section 8 (4), be deemed to have been received or accrued from a source within the Republic notwithstanding that such amounts may have been recovered or recouped outside the Republic:
[Para. (n) substituted by s. 3 (1) (g) of Act 32 of 2005.] Provided that where during any year of assessment a
person has become entitled to any amount which is payable on a date or dates falling after the last day of such year, that amount shall be deemed to have accrued to the person during such year;
[Proviso substituted by s. 4 (1) (s) of Act 31 of 2013 – date of commencement: 12 December 2013.]
[Further proviso deleted by s. 4 (1) (t) of Act 31 of 2013 – date of commencement: 12 December 2013.]
[De nition of ‘gross income’ amended by s. 2 (1) (a) of Act 101 of 1990 and by s. 2 (c) of Act 59 of 2000.]
‘group of companies’ means two or more companies in which one company (hereinafter referred to as the ‘controlling group company’) directly or indirectly holds shares in at least one other company (hereinafter referred to as the ‘controlled group company’), to the extent that—
(a) at least 70 per cent of the equity shares in each controlled
group company are directly held by the controlling group company, one or more other controlled group companies or any combination thereof; and
[Para. (a) substituted by s. 7 (1) (w) of Act 24 of 2011 – date of commencement: 1 April 2012.]
(b) the controlling group company directly holds at least 70 per cent of the equity shares in at least one controlled group company;
[De nition of ‘group of companies’ inserted by s. 6 (1) (k) of Act 74 of 2002 and substituted by s. 3 (1) (h) of Act 32 of 2005.]
‘headquarter company’ in respect of any year of assessment means a company contemplated in section 9I (1) in respect of which an election has been made in terms of that section;
[De nition of ‘headquarter company’ inserted by
s. 6 (1) (o) of Act 7 of 2010 and substituted by s. 7 (1) (x) of Act 24 of 2011 – date of commencement: 1 January 2011. This substitution applies in respect of years of assessment commencing on or after that date.]
‘hotel keeper’ means any person carrying on the business of hotel keeper or boarding or lodging house keeper where meals and sleeping accommodation are supplied to others for money or its equivalent;
[De nition of ‘hotel keeper’ substituted by s. 6 (1) (e) of Act 89 of 1969 and by s. 2 (b) of Act 36 of 1996.]
‘identical security’ means, in respect of a listed security, as de ned in the Securities Transfer Tax Act, 2007 (Act 25 of 2007), that is the subject of a securities lending arrangement—
(k)
[Para. (jA) inserted by s. 17 (1) (c) of Act 60 of 2001 and substituted by s. 7 (1) (t) of Act 24 of 2011 – commencement date: 1 April 2012.]
any amount received or accrued by way of a dividend
or a foreign dividend;
[Para. (k) substituted by s. 4 (1) (c) of Act 88 of 1971, by s. 13 (1) (h) of Act 30 of 2000, by s. 2 (e) of Act 59 of 2000, by s. 17 (1) (d) of Act 60 of 2001 and by s. 12 (1) (f) of Act 45 of 2003, amended by s. 7 (1) (k) of Act 17 of 2009 and substituted by s. 7 (1) (u) of Act 24 of 2011 – date of commencement: 1 April 2012.]
(l)
any amount received or accrued by way of grant or subsidy in respect of any soil erosion works referred to in section 17A (1) or any of the matters mentioned in items (a) to (i), inclusive, of paragraph 12 (1) of the First Schedule;
[Para. (l) substituted by s. 5 (b) of Act 76 of 1968, by s. 4 (1) (c) of Act 113 of 1977 and by s. 2 (1) (h) of Act 113 of 1993.]
(lA) any amount received by or accrued to a company or association as contemplated in subparagraph (ii) of section 11E;
[Para. (lA) inserted by s. 5 of Act 95 of 1967, deleted by s. 2 (c) of Act 141 of 1992 and inserted by s. 6 (1) (l) of Act 7 of 2010.]
(lB) . . .
[Para. (lB) inserted by s. 3 (1) (a) of Act 91 of 1982 and
deleted by s. 3 (1) (f) of Act 32 of 2005.]
(m) any amount received or accrued in respect of a policy of insurance of which the taxpayer is the policyholder, where the policy relates to the death, disablement or severe illness of an employee or director (or former employee or director) of the taxpayer, including by way of any loan or advance: Provided that any amount so received or accrued shall be reduced by the amount of any such loan or advance which is or has been
included in the taxpayer’s gross income;
[Proviso to para. (m) substituted by s. 2 (1) (q) of Act 22 of 2012 – substitution deemed to have come into operation on 1 March 2012 and applies in respect of amounts received or accrued on or after that date.]
[Para. (m) substituted by s. 4 (1) (d) of Act 88 of 1971 and by s. 3 (1) (b) of Act 91 of 1982, amended by s. 2 (1) (d) of Act 94 of 1983 and substituted by s. 7 (1) (v) of Act 24 of 2011 – date of commencement: 1 March 2012. This substitution applies in respect of receipts and accruals on or after that date.]
(mA) . . .
[Para. (mA) inserted by s. 6 (1) (n) of Act 7 of 2010
– date of commencement: the commencement
of years of assessment commencing on or after 1 January 2011. Section 6 (1) (n) of Act 7 of 2010
(a)
a security of the same class in the same company as that security; or
SAIT CompendIum oF TAx LegISLATIon VoLume 1
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INCOME TAX ACT – SECTIONS