Page 390 - SAIT Compendium 2016 Volume1

Eighth Schedule INCOME TAX ACT 58 OF 1962 Eighth Schedule
(iii) that person has acquired that asset from that person’s spouse as contemplated in paragraph 67 and the transferor spouse had adopted or determined a market value in terms of this paragraph, and for this purpose the transferee spouse must be treated as having adopted or determined that same market value; or
(b) in the case where the valuation date is after 1 October 2001—
(i) that person has valued that asset within two years after valuation date; or
(ii) that asset is one contemplated in paragraph 31 (1) (a) or (c) (i) and the market value of that asset on valuation date is determined in terms of one of those paragraphs.
[Sub-para. (4) substituted by s. 38 (1) of Act 30 of 2002, amended by s. 76 (1) (c) of Act 74 of 2002 and substituted by s. 47 (b) of Act 20 of 2006.]
(5) Despite subparagraph (4), where a person has valued an asset and—
(a) the market value of that asset exceeds R10 million;
(b) that asset is an intangible asset (excluding nancial instruments) and the market value thereof exceeds R1 million;
or
(c) that asset is an unlisted share in a company and the market value of all the shares held by that person in that company
exceeds R10 million,
that person may only adopt the market value as the valuation date value of that asset if that person has furnished proof of that valuation to the Commissioner in the form as the Commissioner may prescribe, with the rst return submitted by that person after the date or period contemplated in subparagraph (4).
[Words following item (c) substituted by s. 13 (a) of Act 44 of 2014 (date of commencement: 20 January 2015) and by s. 109 of Taxation Laws Amendment Act, 2015 (‘date or’ inserted) – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
[Sub-para. (5) amended by s. 47 (c) of Act 20 of 2006.] (6) Where a person disposes of—
(a) an asset contemplated in subparagraph (5) (a), (b) or (c) which has been valued before proof of valuation is submitted as contemplated in that subparagraph; or
(b) any other asset which has been valued,
that person must retain proof of that valuation.
[Words following item (b) substituted by s. 13 (b) of Act 44 of 2014 – date of commencement: 20 January 2015.] [Sub-para. (6) amended by s. 76 (1) (d) of Act 74 of 2002.]
(7) The Commissioner may, notwithstanding any proof of valuation submitted by a person to the Commissioner as contemplated in subparagraph (5) or (6)—
(a) request any such further information or documents relating to that valuation; or
(b) where the Commissioner is not satis ed with any value at which an asset has been valued, the Commissioner may
adjust the value accordingly.
(8) Where the valuation date of a person is after 1 October 2001 the provisions of subparagraphs (1) (a), (1) (b) (i),
(2), (2A), (3), (5) and (6) (a) do not apply.
[Sub-para. (8) substituted by s. 47 (d) of Act 20 of 2006 and by s. 61 (1) (c) of Act 8 of 2007.]
30 Time-apportionment base cost
(1) Subject to subparagraph (3), the time apportionment base cost of a pre-valuation date asset is determined in
accordance with the formula—
[(P 2 B) 3 N] Y 5 B + ___________
T1N
where—
(a) ‘Y’ represents the amount to be determined;
(b) ‘B’ represents the amount of expenditure incurred prior to the valuation date in respect of that asset that is allowable
before, on or after the valuation date in terms of paragraph 20;
[Item (b) substituted by s. 82 (1) (b) of Act 60 of 2001 and by s. 70 (1) (a) of Act 31 of 2005.]
(c) ‘P’ represents the proceeds as determined in terms of paragraph 35, in respect of the disposal of that asset, or where subparagraph (2) applies, the amount of proceeds attributable to the expenditure in ‘B’ as determined in accordance
with subparagraph (2);
[Item (c) substituted by s. 77 (1) (b) of Act 74 of 2002.]
(d) ‘N’ represents the number of years determined from the date that the asset was acquired to the day before valuation
date, which number of years may not exceed 20 in the case where the expenditure allowable in terms of paragraph 20 in respect of that asset was incurred in more than one year of 2 assessment prior to the valuation date;
[Item (d) substituted by s. 82 (1) (c) of Act 60 of 2001.]
(e) ‘T’ represents the number of years determined from valuation date until the date the asset was disposed of after
valuation date:
Provided that for purposes of items (d) and (e) a part of a year must be treated as a full year.
[Sub-para. (1) amended by s. 82 (1) (a) and (d) of Act 60 of 2001 and by s. 77 (1) (a) of Act 74 of 2002.]
(2) Where a portion of the expenditure allowable in terms of paragraph 20 in respect of a pre-valuation date asset was incurred on or after the valuation date, the proceeds to be used in the determination of the time apportionment base cost
of the asset must be determined in accordance with the formula—
P 5 R 3 ___B___
(A 1 B)
382 SAIT CompendIum oF TAx LegISLATIon VoLume 1
where—
[Item (e) substituted by s. 82 (1) (c) of Act 60 of 2001.]