Page 51 - SAIT Compendium 2016 Volume1

s 1
(a)
(b)
INCOME TAX ACT 58 OF 1962 s 1
where during a portion of such preceding year the employee was not in the employment of the employer or of any associated institution in relation to the employer, the remuneration proxy as respects that employee must be deemed to be an amount which bears to the amount of the employee’s remuneration for the portion of such preceding year during which the employee was in such employment the same ratio as the period of 365 days bears to the number of days in such last-mentioned portion;
where during the whole of such preceding year, the employee was not in the employment of the employer or of any associated institution in relation to the employer, the remuneration proxy as respects that employee must be deemed to be an amount which bears to the employee’s remuneration during the rst month during which the employee was in the employment of the employer the same ratio as 365 days bears to the number of days during whichtheemployeewasinsuchemployment;
[De nition of ‘representative taxpayer’ amended by s. 5 (h) of Act 5 of 2001 and by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
‘Republic’ means the Republic of South Africa and, when used in a geographical sense, includes the territorial sea thereof as well as any area outside the territorial sea which has been or may be designated, under international law and the laws of South Africa, as areas within which South Africa may exercise sovereign rights or jurisdiction with regard to the exploration or exploitation of natural resources;
[De nition of ‘Republic’ inserted by s. 6 (1) (f) of Act 89 of 1969, substituted by s. 6 (b) of Act 52 of 1970 and by s. 4 (1) (d) of Act 90 of 1972, amended by s. 4 (1) (m) of Act 85 of 1974 and by s. 2 (1) (g) of Act 94 of 1983 and substituted by s. 3 (1) (o) of Act 20 of 2006.]
‘resident’ means any—
[De nition of ‘remuneration proxy’ inserted by s. 4 (1) (zZa) of Act 31 of 2013 – inserted de nition deemed to have come into operation on 1 March 2013 and applies in respect of years of assessment commencing on or after that date.]
‘representative taxpayer’ means a natural person who resides in the Republic and—
[Words in de nition of ‘representative taxpayer’ preceding para. (a) substituted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(a) in respect of the income of a company, the public of cer thereof, or in the event of such company being placed under business rescue in terms of Chapter 6 of the Companies Act, the business rescue practitioner;
[Para. (a) substituted by s. 1 of Act 43 of 2014 – date of commencement: 20 January 2015.]
(b) in respect of the income under his or her management, disposition or control, the agent of any person;
[Para. (b) substituted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(c) in respect of income which is the subject of any trust or in respect of the income of any minor or mentally disordered or defective person or any other person under legal disability, the trustee, guardian, curator or other person entitled to the receipt, management, disposal or control of such income or remitting or paying to or receiving moneys on behalf of such person under disability;
[Para. (c) substituted by s. 4 of Act 21 of 2012 – date of commencement: 20 December 2012.]
(d) in respect of income paid under the decree or order of any court or judge to any receiver or other person, such receiver or person, whoever may be entitled to the bene t of such income, and whether or not it accrues to any person on a contingency or an uncertain event;
(e) in respect of the income received by or accrued to any deceased person during his lifetime and the income received by or accrued to the estate of any deceased person, the executor or administrator of the estate of such deceased person;
(f) in respect of the income received by or accrued to an insolvent estate, the trustee or administrator of such insolvent estate:
[Para. (f) added by s. 2 (1) (l) of Act 28 of 1997.]
Provided that for the purposes of this de nition income
includes any amount received or accrued or deemed to have been received or accrued in consequence of the disposal of any asset envisaged in the Eighth Schedule;
[Words in de nition of ‘representative taxpayer’ following para. (f) but preceding the proviso deleted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
[Item (bb) substituted by s. 3 (1) (i) of Act 32 of 2005.]
in which case that person will be a resident with effect from the rst day of that relevant year of assessment:
Provided that—
(A) adayshallincludeapartofaday,butshall
not include any day that a person is in transit through the Republic between two places outside the Republic and that person does not formally enter the Republic through a ‘port of entry’ as contemplated in section 9 (1) of the Immigration Act, 2002 (Act 13 of 2002), or at any other place as may be permitted by the Director-General of the Department of Home Affairs or the Minister of Home Affairs in terms of that Act; and
[Item (A) substituted by s. 6 (1) (p) of Act 74 of 2002, by s. 12 (1) (k) of Act 45 of 2003 and by s. 3 (1) (j) of Act 32 of 2005.]
(B) where a person who is a resident in terms of this subparagraph is physically outside the Republic for a continuous period of at least 330 full days immediately after the day on which such person ceases to be physically present in the Republic, such person shall be deemed not to have been a resident from the day on which such person so ceased to be physically present in the Republic; or
[Sub-para. (ii) amended by s. 12 (1) (i) and (j) of Act 45 of 2003.] (b) person (other than a natural person) which is incorporated, established or formed in the Republic or which has its place of effective management in the
Republic,
[Para. (b) substituted by s. 12 (1) (l) of Act 45 of 2003.] 43
(a)
natural person who is—
(i) ordinarily resident in the Republic; or
(ii)not at any time during the relevant year of assessment ordinarily resident in the Republic, if that person was physically present in the Republic—
(aa) for a period or periods exceeding 91 days in aggregate during the relevant year of assessment, as well as for a period or periods exceeding 91 days in aggregate during each of the ve years of assessment preceding such year of assessment; and
[Item (aa) substituted by s. 3 (1) (i) of Act 32 of 2005.] (bb) for a period or periods exceeding 915 days in aggregate during those ve preceding
years of assessment,
SAIT CompendIum oF TAx LegISLATIon VoLume 1
INCOME TAX ACT – SECTIONS