Page 427 - SAIT Compendium 2016 Volume1

Tenth Schedule INCOME TAX ACT 58 OF 1962 Eleventh Schedule
(3) If an oil and gas company holding a participating interest in an oil and gas right has concluded an agreement contemplated in subparagraph (1), the terms and conditions of that agreement will apply to all participating interests subsequently held by that company in that oil and gas right.
(4) An oil and gas company that has concluded an agreement contemplated in subparagraph (1) in respect of an oil and gas right may at any time unilaterally terminate the agreement in respect of that oil and gas right so held with effect from the commencement of the year of assessment immediately following the noti cation date of the termination.
(5) The portion of taxable income and pro ts of an oil and gas company derived from all the oil and gas rights governed by the version of the Schedule applicable to an oil and gas right covered by a binding agreement referred to in subparagraph (1), must be determined in terms of that version of the Schedule.
(6) If the State fails to comply with the terms of the agreement contemplated in subparagraph (1) and that failure has a material adverse economic impact on the taxation of income or pro ts of the oil and gas company that is party to that agreement, that oil and gas company is entitled to compensation for the loss of market value caused by that failure (and interest at the prescribed rate calculated on the compensation from the date of non-compliance) or to an alternative remedy that otherwise eliminates the full impact of that failure.
(7) For purposes of this paragraph— (a) an ‘oil and gas right’ means any—
(i) exploration right or production right as de ned in section 1 of the Mineral and Petroleum Resources Development Act or any right or interest therein;
[Subitem (i) substituted by s. 160 (c) of Act 31 of 2013 – date of commencement: 12 December 2013.]
(ii) exploration right acquired by virtue of a conversion contemplated in item 4 of Schedule II to the Mineral and Petroleum Resources Development Act or any interest therein; or
[Subitem (ii) substituted by s. 160 (c) of Act 31 of 2013 – date of commencement: 12 December 2013.]
(iii) production right acquired by virtue of a conversion contemplated in item 5 of Schedule II to the Mineral and Petroleum Resources Development Act or any interest therein; and
[Subitem (iii) substituted by s. 160 (c) of Act 31 of 2013 – date of commencement: 12 December 2013.]
[Item (a) substituted by s. 125 (1) of Act 24 of 2011 – date of commencement deemed to have been 30 October 2007. This item applies in respect of conversions taking place on or after that date.]
(b) an exploration right, a renewal of that exploration right and an initial production right converted from any exploration right or renewal thereof held by a company will all be deemed to be one and the same oil and gas right in the hands of that company to the extent that those rights relate to the same geographical area.
[Para. 8 substituted by s. 89 (1) of Act 35 of 2007.]
Eleventh Schedule
GOVERNMENT GRANTS EXEMPT FROM NORMAL TAX (Section 12P)
1. Automotive Production and Development Programme received or accrued from the Department of Trade and Industry;
2. Automotive Investment Scheme received or accrued from the Department of Trade and Industry;
3. Black Business Supplier Development Programme received or accrued from the Department of Trade and Industry;
4. Business Process Services received or accrued from the Department of Trade and Industry;
5. Capital Projects Feasibility Programme received or accrued from the Department of Trade and Industry;
6. Capital Restructuring Grant received or accrued from the Department of Human Settlements;
7. Clothing and Textiles Competitiveness Programme received or accrued from the Department of Trade and Industry;
8. Co-operative Incentive Scheme received or accrued from the Department of Trade and Industry;
9. Critical Infrastructure Programme received or accrued from the Department of Trade and Industry;
10. Eastern Cape Jobs Stimulus Fund received or accrued from the Department of Economic Development,
Environmental Affairs and Tourism of the Eastern Cape;
11. Enterprise Investment Programme received or accrued from the Department of Trade and Industry;
12. Equity Fund received or accrued from the Department of Science and Technology;
13. Export Marketing and Investment Assistance received or accrued from the Department of Trade and Industry;
14. Film Production Incentive received or accrued from the Department of Trade and Industry;
15. Food Forti cation Grant received or accrued from the Department of Health;
16. Idea Development Fund received or accrued from the Department of Science and Technology;
17. Industrial Development Zone Programme received or accrued from the Department of Trade and Industry;
18. Industry Matching Fund received or accrued from the Department of Science and Technology;
19. Integrated National Electri cation Programme Grant: Non-grid electri cation service providers received or accrued
from the Department of Energy;
20. Integrated National Electri cation Programme: Electricity connection to households received or accrued from the
Department of Energy;
21. Jobs Fund received or accrued from the National Treasury;
22. Manufacturing Competitiveness Enhancement Programme received or accrued from the Department of Trade and
Industry;
23. Sector Speci c Assistance Scheme received or accrued from the Department of Trade and Industry;
24. Small, Medium Enterprise Development Programme received or accrued from the Department of Trade and
Industry;
25. Small/Medium Manufacturing Development Programme received or accrued from the Department of Trade and
Industry;
SAIT CompendIum oF TAx LegISLATIon VoLume 1 419
INCOME TAX ACT – SCHEDULES