Page 413 - SAIT Compendium 2016 Volume1

Eighth Schedule INCOME TAX ACT 58 OF 1962 Eighth Schedule
67D Communications licence conversions
(1) Where existing licences referred to in Chapter 15 of the Electronic Communications Act, 2005 (Act 36 of 2005), are converted to new licences in terms of section 93 of that Act, a licensee of an existing licence or licences is deemed to have disposed of the existing—
(a) licence for an amount equal to the base cost of the licence; or
(b) licences for an amount equal to the aggregate of the base cost of the licences,
on the date of the conversion.
(2) The licensee of a new licence contemplated in subparagraph (1)—
(a) is deemed to have acquired the new licence—
(i) in the case where an existing licence is converted to a new licence, at a cost, recognised as such for the purposes of paragraph 20, equal to the expenditure incurred in respect of the existing licence;
(ii) in the case where two or more existing licences are converted to a new licence, at a cost, recognised as such for the purposes of paragraph 20, equal to the aggregate of the expenditure incurred in respect of the existing licences; and
(iii) in the case where an existing licence is converted to two or more new licences, at a cost, recognised as such for the purposes of paragraph 20, that bears to the expenditure incurred in respect of the existing licence the same ratio as the value of that new licence bears to the aggregate value of the new licences,
which cost must be treated as expenditure actually incurred by the licensee in respect of the new licence or licences
for the purposes of paragraph 20; and
(b) is deemed to have incurred the cost contemplated in item (a) on the day immediately after the conversion.
[Para. 67D inserted by s. 77 (1) of Act 17 of 2009.]
PART X
ATTRIBUTION OF CAPITAL GAINS (paras. 68–73)
68 Attribution of capital gain to spouse
(1) Where a person’s capital gain or a capital gain that has vested in or is treated as having vested in that person during the year of assessment in which it arose can be attributed wholly or partly to—
(a) any donation, settlement or other disposition; or
(b) any transaction, operation or scheme,
made, entered into or carried out by that person’s spouse mainly for purposes of reducing, postponing or avoiding that spouse’s liability for any tax, duty or levy which would otherwise have become payable under any Act administered by the Commissioner, so much of the gain as can be so attributed must be disregarded when determining that person’s aggregate capital gain or aggregate capital loss and taken into account when determining the aggregate capital gain or aggregate capital loss of that person’s spouse.
(2) Where a person’s capital gain is derived from—
(a) any trade carried on by that person in partnership or association with that person’s spouse or which is in any way
connected with any trade carried on by that spouse; or
(b) that person’s spouse or any partnership or private company at a time when that spouse was a member of that
partnership or the sole, main or one of the principal holders of shares in that company,
[Item (b) substituted by s. 146 of Act 31 of 2013 – date of commencement: 12 December 2013.]
so much of that gain as exceeds the amount to which that person would reasonably be entitled having regard to the nature
of the relevant trade, the extent of that person’s participation therein, the services rendered by that person or any other relevant factor, must be disregarded when determining that person’s aggregate capital gain or aggregate capital loss and taken into account when determining the aggregate capital gain or aggregate capital loss of that person’s spouse.
69 Attribution of capital gain to parent of minor child
Where a minor child’s capital gain or a capital gain that has vested in or is treated as having vested in or that has been used for the bene t of that child during the year of assessment in which it arose can be attributed wholly or partly to any donation, settlement or other disposition—
(a) made by a parent of that child; or
(b) made by another person in return for any donation, settlement or other disposition or some other consideration made or given by a parent of that child in favour directly or indirectly of that person or his or her family,
so much of that gain as can be so attributed must be disregarded when determining that child’s aggregate capital gain or aggregate capital loss and must be taken into account in determining the aggregate capital gain or aggregate capital loss of that parent.
70 Attribution of capital gain subject to conditional vesting
Where—
(a) a person has made a donation, settlement or other disposition that is subject to a stipulation or condition imposed
by that person or anyone else in terms of which a capital gain or a portion of any capital gain attributable to that donation, settlement or other disposition shall not vest in the bene ciaries of that donation, settlement or other disposition or some of those bene ciaries until the happening of some xed or contingent event;
(b) a capital gain that is attributable to that donation, settlement or other disposition has arisen during a year of assessment throughout which the person who made that donation, settlement or other disposition has been a resident; and
(c) that capital gain or a portion thereof has not vested during that year in any bene ciary who is a resident,
SAIT CompendIum oF TAx LegISLATIon VoLume 1 405
INCOME TAX ACT – SCHEDULES