Page 412 - SAIT Compendium 2016 Volume1

Eighth Schedule INCOME TAX ACT 58 OF 1962 Eighth Schedule
(3) Subparagraph (1) shall not apply in respect of the disposal of an asset by a person to his or her spouse who is not a resident, unless the asset disposed of is an asset contemplated in paragraph 2 (1) (b).
[Sub-para. (3) added by s. 104 (1) (b) of Act 60 of 2001.]
67A . . .
[Para. 67A inserted by s. 105 (1) of Act 60 of 2001, substituted by s. 93 (1) of Act 74 of 2002, amended by s. 109 (1) of Act 45 of 2003, by s. 81 (1) of Act 35 of 2007, by s. 82 (1) (a) and (b) of Act 60 of 2008, by s. 109 (1) of Act 7 of 2010 and by s. 126 (1) of Act 22 of 2012 and repealed by s. 127 (1) of Act 22 of 2012 – date of commencement: 1 April 2013; the repeal applies iro years of assessment commencing on or after that date.]
67AB . . .
[Para. 67AB inserted by s. 82 (1) of Act 35 of 2007, amended by s. 83 (1) (a) and (b) of Act 60 of 2008 and repealed by s. 128 (1) of Act 22 of 2012 – date of commencement deemed to have been 1 April 2012; the repeal applies iro years of assessment commencing on or after that date.]
67B Disposal of immovable property by share block company
(1) For the purposes of this paragraph—
‘share’ means a share as de ned in section 1 of the Share Blocks Control Act;
‘share block company’ means a share block company as de ned in section 1 of the Share Blocks Control Act. ‘Share Blocks Control Act’ . . .
[De nition of ‘Share Blocks Control Act’ deleted by s. 91 of Act 43 of 2014 – date of commencement: 20 January 2015.] (2) This paragraph applies where a person who holds a right of use of a part of the immovable property of a share block company, which right is conferred by reason of the ownership of a share by that person in that share block company, acquires ownership of that part of immovable property from that share block company as part of any transaction in terms
of which a disposal of that part of immovable property is made by that share block company.
(3) Where a person who owns a share in a share block company acquires ownership of immovable property as part of any transaction in terms of which a disposal is made by that share block company as contemplated in subparagraph
(2)—
(a) the share block company must disregard any capital gain or capital loss determined in respect of that disposal; and
(b) that person must—
(i) disregard any capital gain or capital loss determined in respect of any disposal of that share as a result of that disposal; and
(ii) be treated as having—
(aa) acquired that immovable property for an amount equal to the expenditure contemplated in paragraph 20
incurred by the person in acquiring that share;
(bb) incurred the expenditure contemplated in subsubitem (aa) on the same date that the expenditure was
incurred by the person in acquiring that share;
(cc) effected improvements to that immovable property for an amount equal to the expenditure contemplated
in paragraph 20 incurred by that person in effecting improvements to the part of the immovable property of the share block company in respect of which the person had a right of use as a result of the ownership of that share;
(dd) incurred the expenditure contemplated in subsubitem (cc) on the same date that the expenditure was incurred by the person in effecting the improvements to the part of the immovable property of the share block company in respect of which the person had a right of use as a result of the ownership of that share;
(ee) acquired that immovable property on the date that the share was acquired by the person; and
(ff) used that immovable property in the same manner as the person used the immovable property in respect of
which the person had a right of use as a result of the ownership of that share; and
(c) any valuation of that share which was done by that person within the period prescribed by paragraph 29 (4) must be
deemed to have been done by that person in respect of that immovable property.
[Para. 67B inserted by s. 110 (1) of Act 45 of 2003 and substituted by s. 129 (1) of Act 22 of 2012 – date of commencement: 1 January 2013; the substituted paragraph applies iro disposals made on or after that date.]
67C Mineral rights conversions and renewals
Notwithstanding paragraph 11, there is no disposal where—
(a) any old order right or OP26 right as de ned in Schedule II of the Mineral and Petroleum Resources Development
Act wholly or partially continues in force or is wholly or partially converted into a new right pursuant to the same Schedule; or
[Sub-para. (a) substituted by s. 145 of Act 31 of 2013 – date of commencement: 12 December 2013.]
(b) any prospecting right, mining right, exploration right, production right, mining permit, retention permit or reconnaissance permit as de ned in section 1 of the Mineral and Petroleum Resources Development Act is wholly
or partially renewed in terms of that Act,
[Sub-para. (b) substituted by s. 28 (1) of Act 16 of 2004 and by s. 145 of Act 31 of 2013 – date of commencement: 12 December 2013.]
and the continued, converted or renewed right or permit will be treated as one and the same asset as the right or permit before continuation, conversion or renewal for purposes of this Act.
[Para. 67C inserted by s. 111 (1) of Act 45 of 2003 and amended by s. 28 (1) of Act 16 of 2004.]
404 SAIT CompendIum oF TAx LegISLATIon VoLume 1