Page 40 - SAIT Compendium 2016 Volume1

s 1
(b)
INCOME TAX ACT 58 OF 1962 s 1
if that security constitutes a security in an amalgamated company as contemplated in section 44, a security in a resultant company acquired by virtue of that security held in that amalgamated company as contemplated in subsection (6) of that section;
(a) an exchange as de ned in section 1 of the Financial Markets Act and licensed under section 9 of that Act; or
[Para. (a) substituted by s. 3 (1) (b) of Act 32 of 2004, by s. 6 (1) (p) of Act 7 of 2010 and by s. 4 (1) (w) of Act 31 of 2013 – substitution deemed to have come into operation on 3 June 2013.]
(b) a stock exchange in a country other than the Republic which has been recognised by the Minister as contemplated in paragraph (c) of the de nition of ‘recognised exchange’ in paragraph 1 of the Eighth Schedule;
[De nition of ‘listed company’ inserted by s. 6 (1) (l) of Act 74 of 2002.]
‘listed share’ means a share that is listed on an exchange as de ned in section 1 of the Financial Markets Act and licensed under section 9 of that Act;
[De nition of ‘listed share’ inserted by s. 7 (1) (m) of Act 17
of 2009 and substituted by s. 4 (1) (x) of Act 31 of 2013 – substitution deemed to have come into operation on
3 June 2013.]
‘living annuity’ means a right of a member or former member of a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund, or his or her dependant or nominee, or any subsequent nominee, to an annuity purchased from a person or provided by that fund on or after the retirement date of that member or former member in respect of which—
(a) the value of the annuity is determined solely by reference to the value of assets which are speci ed in the annuity agreement and are held for purposes of providing the annuity;
[Para. (a) substituted by s. 4 (1) (h) of Act 60 of 2008.] (b) the amount* of the annuity is determined in accordance with a method or formula prescribed by
the Minister by notice in the Gazette;
(c) the full remaining value of the assets contemplated in
paragraph (a) may be paid as a lump sum when the value of those assets become at any time less than an amount† prescribed by the Minister by notice in the Gazette;
(d) the amount of the annuity is not guaranteed by that person or fund;
[Para. (d) substituted by s. 4 (1) (i) of Act 60 of 2008.] (e) on the death of the member or former member, the value of the assets referred to in paragraph (a) may be paid to a nominee of the member or former member as an annuity or lump sum or as an annuity and a lump sum, or, in the absence of a nominee, to the
deceased’s estate as a lump sum; and
[Para. (e) substituted by s. 4 (1) (i) of Act 60 of 2008 and substituted by s. 7 (1) (y) of Act 24 of 2011 – date of commencement: 1 March 2012.]
[De nition of ‘identical security’ inserted by
s. 3 (1) (h) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 January 2016.]
‘identical share’ means, in respect of a share—
(a) (b)
a share of the same class in the same company as that share; or
if that share constitutes a share in an amalgamated company as contemplated in section 44, a share in a resultant company acquired by virtue of that share held in that amalgamated company as contemplated in subsection (6) of that section;
[De nition of ‘identical share’ inserted by s. 3 (1) (h) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 January 2016.]
‘IFRS’ means the International Financial Reporting Standards issued by the International Accounting Standards Board;
[De nition of ‘IFRS’ inserted by s. 2 (1) (r) of Act 22 of 2012
– date of commencement: 1 January 2013.] ‘income’ means the amount remaining of the gross income of any person for any year or period of assessment after deducting therefrom any amounts exempt from
normal tax under Part I of Chapter II;
‘insolvent estate’ means an insolvent estate as
de ned in section 2 of the Insolvency Act, 1936 (Act 24 of 1936);
[De nition of ‘insolvent estate’ inserted by s. 2 (1) (i) of Act 28 of 1997.]
[NB: A de nition of ‘Insurance Act’ has been inserted by s. (1) (i) of Taxation Laws Amendment Act, 2015, a provision that is to come into operation on the date on which the Insurance Act, 2016, comes into operation. See Pendlex below.]
‘international headquarter company’ . . .
[De nition of ‘international headquarter company’ inserted
by s. 2 (f) of Act 59 of 2000 and deleted by s. 12 (1) (g) of Act 45 of 2003.]
‘JSE Limited Listings Requirements’ means the JSE Limited Listings Requirements, 2003, made by the JSE Limited in terms of section 11 of the Financial Markets Act;
[De nition of ‘JSE Limited Listings Requirements’ inserted by s. 7 (1) (l) of Act 17 of 2009 and substituted by s. 4 (1) (u) of Act 31 of 2013 – substitution deemed to have come into operation on 3 June 2013.]
‘linked unit’ means a unit comprising a share and a debenture in a company, where that share and that debenture are linked and are traded together as a single unit;
[De nition of ‘linked unit’ inserted by s. 4 (1) (v) of Act 31 of 2013 – inserted de nition deemed to have come into operation on 1 April 2013 and applies in respect of years of assessment commencing on or after that date.]
‘listed company’ means a company where its shares or depository receipts in respect of its shares are listed on—
(f)
further requirements regarding the annuity may be
Pendlex (to come into operation on the date on which the Insurance Act, 2016, comes into operation)
‘Insurance Act’ means the Insurance Act, 2016;
prescribed by the Minister by notice in the Gazette; [De nition of ‘living annuity’ inserted by s. 2 (1) (o) of Act 3 of 2008 and amended by s. 4 (1) (g) of Act 60 of 2008.]
‘local authority’ . . .
[De nition of ‘local authority’ amended by s. 4 (b) of Act 72
of 1963, substituted by s. 5 (a) of Act 88 of 1965 and by s. 2 (d) of Act 141 of 1992 and deleted by s. 3 (1) (h) of Act 20 of 2006.]
‘Long-term Insurance Act’ means the Long-term Insurance Act, 1998 (Act 52 of 1998);
[De nition of ‘Long-term Insurance Act’ inserted by s. 4 (1) (y) of Act 31 of 2013 – date of commencement: 12 December 2013.]
* See notice in terms of para (b) of the de nition of ‘living annuity’ — GN 290 in GG 32005 of 11 March 2009.
† R50 000 if any of the value of the annuity or any part of the retirement interest was previously commuted for a single payment, or R75 000 in any other case — GN 1164 in GG 31554 of 30 October 2008.
32 SAIT CompendIum oF TAx LegISLATIon VoLume 1