Page 47 - SAIT Compendium 2016 Volume1

s 1 INCOME TAX ACT 58 OF 1962 s 1
recommendation of the Mining Leases Board signi ed in writing his decision to grant a lease of the right to mine for gold, and includes any other gold mine which, in the opinion of the Government Mining Engineer, is an independent workable proposition which was established as such after the said date; [De nition of ‘post-1973 gold mine’ inserted by s. 4 (1) (l) of Act 85 of 1974.]
‘post-1990 gold mine’ means a gold mine—
(a) which, in the opinion of the Director-General: Mineral and Energy Affairs, is an independent workable proposition and in respect of which a mining authorisation for gold mining was issued for the rst time after 14 March 1990 in terms of the
Minerals Act, 1991 (Act 50 of 1991); or
(b) for which a mining permit or mining right for gold mining (other than a mining permit or mining right issued on conversion of an old order mining right as de ned in paragraph 1 of Schedule II to the Mineral and Petroleum Resources Development Act) was issued for the rst time on or after 1 May 2004 in terms of that Act;
[De nition of ‘post-1990 gold mine’ inserted by s. 2 (1) (c) of Act 101 of 1990, amended by s. 2 (g) of Act 141 of 1992 and substituted by s. 1 (1) (m) of Act 43 of 2014 – date of commencement deemed to have been 1 May 2004.]
‘prescribed’ means prescribed or deemed to be prescribed by or under this Act;
‘prescribed rate’ in relation to any interest payable in terms of this Act, means for the purposes of—
(a) interest payable to any taxpayer under the provisions of
section 89quat (4), a rate determined at four percentage
points below the rate contemplated in paragraph (b); or
(b) any other provision of this Act, such rate as the Minister may from time to time x by notice in the Gazette in terms of section 80 (1) (b) of the Public Finance Management Act, 1999 (Act 1 of 1999): Provided that where the Minister xes a new rate in terms of that Act, that new rate applies for purposes of this Act from the rst day of the second month following the date on
which that new rate came into operation;
[Para. (b) substituted by s. 3 of Act 16 of 2004.]
[De nition of ‘prescribed rate’ inserted by s. 2 (1) (h) of Act 121 of 1984, substituted by s. 2 (1) (b) of Act 85 of 1987, amended byGNR780of14April1989,bys.2(1)(j)ofAct113of1993, by GN 465 of 11 March 1994, by GN 1503 of 20 November 1998, by GN 538 of 22 April 1999, by GN R1021 of 27 August 1999 and by GN 182 of 25 February 2000 and substituted by s. 13(1)(j)ofAct30of2000andbys.6(1)(n)ofAct74of2002.]
[NB: The de nition of ‘prescribed rate’ has been substituted by s. 271 of the Tax Administration Act 28 of 2011 (see para. 23 (f) of Schedule 1 to that Act), a provision that will be put into operation by proclamation. See Pendlex below.]
‘provident fund’ means—
(a) any fund (other than a pension fund, pension
preservation fund, provident preservation fund, bene t fund or retirement annuity fund) which is approved by the Commissioner in respect of the year of assessment in question and, in the case of any such fund established on or after 1 July 1986, is registered under the provisions of the Pension Funds Act; or
(b) any provident fund established for the bene t of the employees of any municipality or of any local authority (as de ned in the de nition of ‘local authority’ in this section prior to the coming into operation of section 3 (1) (h) of the Revenue Laws Amendment Act, 2006 (Act 20 of 2006), that was established prior to the date that section so came into operation);
(c) any fund contemplated in subparagraph (b), which includes as members employees of any municipal entity created in accordance with the provisions of the Municipal Systems Act, 2000 (Act 32 of 2000), over which one or more municipalities or local authorities (as de ned in section 1 prior to the coming into operation of section 3 (1) (h) of the Revenue Laws Amendment Act, 2006, and that was established prior to the date [that] that section so came into operation) exercise ownership control as contemplated by that Act, where such fund was established—
(aa) on or before 14 November 2000, and such employees were employees of a local authority (as de ned in section 1 prior to the coming into operation of section 3(1)(h) of the Revenue Laws Amendment Act, 2006, and that was established prior to the date that section so came into operation) immediately prior to becoming employees of such municipal entity; or
(bb) after 14 November 2000, and such fund has been approved by the Commissioner subject to such limitations, conditions and requirements as contemplated in paragraph (c) of the de nition of ‘pension fund’:
[Words preceding the proviso to the de nition of ‘provident fund’ substituted by s. 4 (1) (zM) of Act 31 of 2013 (date of commencement: 12 December 2013) and by
s. 3 (1) (u) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 March 2016*; the substitution applies iro years of assessment commencing on or after that date.]
Provided that the Commissioner may approve a fund subject to such limitations or conditions as he may determine, and shall not approve a fund in respect of any year of assessment unless he is in respect of that year of assessment satis ed— (a) that the fund is a permanent fund bona de established
solely for the purpose of providing bene ts for employees on retirement from employment or solely for the purpose of providing bene ts for the dependants or nominees of deceased employees or deceased former employees or solely for a combination of such purposes or mainly for the said purpose and also for the purpose of providing any bene t contemplated in paragraph 2C of the Second Schedule or section 15A or 15E of the Pension Funds Act; and
[Para. (a)† of the proviso substituted by s. 2 (f) of Act 21 of 1995,bys.4(1)(s)ofAct60of2008andbys.4(1)(zN)ofAct 31 of 2013 – date of commencement: 12 December 2013.]
Prelex
Words preceding the proviso in force until 1 March 2016
‘provident fund’ means any fund (other than a pension fund, pension preservation fund, provident preservation fund, bene t fund or retirement annuity fund) which is approved by the Commissioner in respect of the year of assessment in question and, in the case of any such fund established on or after 1 July 1986, is registered under the provisions of the Pension Funds Act
Pendlex
‘prescribed rate’ means the rate contemplated in
section 189 (3) of the Tax Administration Act;
* See footnote in annotation to para. (a) (i) of de nition of ‘pension fund’.
† Note: Para. (a) was to be substituted by s. 4 (1) (zO) of Act 31 of 2013, a provision that was to have come into operation on 1 March 2016 (date of commencement substituted by s. 119 (1) (d) of Act 43 of 2014)). The said para. (zO) of s. 4 (1) has, however, been deleted, and and s. 119 has been repealed by ss. 143 (1) (a) and 155 (1), respectively, of Taxation Laws Amendment Act, 2015.]
SAIT CompendIum oF TAx LegISLATIon VoLume 1 39
INCOME TAX ACT – SECTIONS