Page 418 - SAIT Compendium 2016 Volume1

Eighth Schedule INCOME TAX ACT 58 OF 1962 Eighth Schedule
(b) that capital gain has not been subject to tax in the Republic in terms of the provisions of this Act,
that amount must be taken into account for the purposes of calculating the aggregate capital gain or aggregate capital loss of that resident [in] that year of assessment.
[Sub-para. (3) added by s. 108 (1) of Act 60 of 2001.]
81 Base cost of interest in discretionary trust
Despite paragraph 38 (1) (b), a person’s interest in a discretionary trust must be treated as having a base cost of nil. [Para. 81 amended by s. 109 (1) of Act 60 of 2001 and substituted by s. 99 of Act 74 of 2002.]
82 Death of bene ciary of special trust
Where a bene ciary of a special trust dies, that trust must continue to be treated as a special trust for the purposes of this Schedule until the earlier of the disposal of all assets held by that trust or two years after the date of death of that bene ciary.
83 Insolvent estate of person
(1) For the purposes of this Schedule, the disposal of an asset by the insolvent estate of a person shall be treated in the same manner as if that asset had been disposed of by that person.
(2) No person whose estate has been voluntarily or compulsorily sequestrated may carry forward any assessed capital loss incurred prior to the date of sequestration.
PART XIII
FOREIGN CURRENCY (paras. 84–96)
[Part XIII amended by s. 34 of Act 19 of 2001, by s. 40 of Act 30 of 2001, by s. 110 (1) and 111 (1) of Act 60 of 2001 and by s. 40 of Act 30 of 2002, substituted by s. 100 (1) of Act 74 of 2002, amended by s. 117, by s. 118 (1) (a) and (b), s. 119 (a), (b) and (c), 120 (1), 121 (a) and (b), 122 and 123 (a) and (b) of Act 45 of 2003, by s. 59 of Act 20 of 2006, by s. 68 of Act 8 of 2007 and by s. 112 (1) of Act 7 of 2010 and repealed by s. 124 (1) of Act 24 of 2011 – date of commencement deemed to have been 1 March 2011. This repeal applies iro years of assessment commencing on
or after that date.]
PART XIV MISCELLANEOUS (para. 97)
97 Transactions during transitional period
(1) For purposes of this paragraph ‘transitional period’ means the period from 23 February 2000 until and including the day before the valuation date.
(2) Subject to subparagraph (3), where a person—
(a) acquired an asset during the transitional period by means of a non-arm’s length transaction, that person shall for
purposes of paragraph 30 be treated as having acquired that asset—
(i) at the time when the person who disposed of that asset acquired that asset; and
(ii) at a cost equal to the base cost of that asset in the hands of the person who disposed of it; or
(b) acquired an asset during the transitional period directly or indirectly from a person who was a connected person in
relation to that person at—
(i) the time of that acquisition; or
(ii) any time during the period from the date of that acquisition up to a subsequent disposal of that asset by that person within three years of that acquisition,
that person shall for purposes of paragraph 30 be treated as having acquired that asset—
(aa) at the time when that connected person acquired that asset, or is treated as having acquired that asset in terms
of this paragraph; and
(bb) at a cost equal to the base cost of that asset in the hands of that connected person, or an amount which is treated
as the base cost of that asset in the hands of that connected person in terms of this paragraph; or
(c) reacquired an asset within a period of ninety days after its disposal during the transitional period—
(i) by means of a non-arm’s length transaction; or
(ii) directly or indirectly to a connected person in relation to that person,
that person shall for the purposes of paragraph 30 be treated as having reacquired that asset— (aa) at the time when that person originally acquired that asset prior to that disposal; and
(bb) at a cost equal to the base cost of that asset at the time of that disposal; or
(d) acquired an asset within a period of ninety days after the disposal, during the transitional period, of a substantially similar asset that was disposed of—
(i) by means of a non-arm’s length transaction; or
(ii) directly or indirectly to a connected person in relation to that person,
in order to replace the asset so disposed of, that person shall for the purposes of paragraph 30 be treated as having acquired that asset—
(aa) at the time when that person acquired the substantially similar asset; and
(bb) at a cost equal to the base cost of that substantially similar asset at the time of that disposal.
[Sub-para. (2) substituted by s. 35 (1) (a) of Act 19 of 2001 and amended by s. 112 (1) (a) of Act 60 of 2001.]
(3) The provisions of this paragraph do not apply to any disposal of an asset by a fund contemplated in section 29A
(4) to any other such fund in terms of section 29A (6) or (7).
[Sub-para. (3) deleted by s. 35 (1) (b) of Act 19 of 2001 and added by s. 112 (1) (b) of Act 60 of 2001.] [Para. 97, previously para. 86, renumbered by s. 101 of Act 74 of 2002.]
410 SAIT CompendIum oF TAx LegISLATIon VoLume 1