Page 54 - SAIT Compendium 2016 Volume1

s 1
INCOME TAX ACT 58 OF 1962
s 1
(dd) as is contemplated in Part V of the Policyholder Protection Rules promulgated in terms of section 62 of the Long-term Insurance Act; or
[Item (dd) substituted by s. 5 (1) (r) of Act 35 of 2007 and by s. 4 (1) (zZd) of Act 31 of 2013 – date of commencement: 12 December 2013.]
(ee) for any deduction contemplated in para- graph 2 (1) (b) of the Second Schedule,
[Item (ee) inserted by s. 5 (1) (r) of Act 35 of 2007 and substituted by s. 7 (1) (zC) of Act 17 of 2009.]
no member’s rights to bene ts shall be capable of surrender, commutation or assignment or of being pledged as security for any loan;
[Sub-para. (xii) substituted by s. 19 (1) (l) of Act 30 of 1998 and by s. 3 (1) (q) of Act 20 of 2006.]
(xiii) that the Commissioner shall be noti ed of all amendments of the rules; and
(c) that the rules of the fund have been complied with; [De nition of ‘retirement annuity fund’ amended by s. 2 (1) (e)
of Act 65 of 1986 and by s. 7 (1) (zH) of Act 24 of 2011.]
‘retirement date’ means the date on which—
(a) a member of a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund, elects to retire and in terms of the rules of that fund, becomes entitled to an annuity or a lump sum bene t contemplated in paragraph 2 (1) (a) (i) of the Second Schedule on or
subsequent to attaining normal retirement age; or
[Para. (a) substituted (‘elects to retire and’ inserted) by s. 1 (1) (p) of Act 43 of 2014 – date of commencement: 1 March 2015.]
(b) a nominee or dependant of a deceased member of a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund, in terms of the rules of that fund, becomes entitled to an annuity or a lump sum bene t contemplated in paragraph 2 (1) (a) (i) of the Second Schedule on the death of the member;
[De nition of ‘retirement date’ inserted by s. 2 (1) (zC) of Act 3 of 2008 and substituted by s. 7 (1) (zD) of Act 17 of 2009 and by s. 7 (1) (zI) of Act 24 of 2011 – date of commencement deemed to have been 1 March 2009.]
‘retirement-funding employment’ . . .
[De nition of ‘retirement-funding employment’ inserted by
s. 3 (1) (d) of Act 104 of 1979 and amended by s. 2 (1) (h) of Act 94 of 1983, by s. 2 (1) (i) of Act 121 of 1984, by s. 2 (1) (l) of Act 113 of 1993, by s. 2 (1) (b) of Act 21 of 1994, by s. 6 (1) (q) of Act 74 of 2002, by s. 3 (1) (h) and (i) of Act 8 of 2007, by s. 2 (1) (zD) of Act 3 of 2008 and by s. 4 (1) (y) of Act 60 of 2008 and deleted by s. 4 (1) (zZe) of Act 31 of 2013 – date of commencement deemed to have been 1 March 2015*; the deletion applies iro contributions made on or after that date.]
the provisions of paragraphs (c) and (cA) of that de nition and including the amount of any allowance or advance in respect of transport expenses contemplated in section 8 (1) (b), but not an allowance or advance contemplated in section 8 (1) (b) (iii) which is based on the actual distance travelled by the recipient, and which is calculated at a rate per kilometre which does not exceed the appropriate rate per kilometre xed by the Minister of Finance under the said section 8 (1) (b) (iii), and excluding any retirement fund lump sum bene t and any retirement fund lump sum withdrawal bene t) and is a member of or, as an employee, contributes to a pension fund or provident fund established for the bene t of employees of the employer from whom such income is derived; or
[Sub-para. (i) substituted by s. 2 (1) (l) of Act 113 of 1993, by s. 2 (1) (b) of Act 21 of 1994, by s. 6 (1) (q) of Act 74 of 2002, by s. 3 (1) (h) of Act 8 of 2007 and by s. 4 (1) (y) of Act 60 of 2008.]
(ii) in the case of such holder of an of ce, derives in respect of his of ce any income (other than any retirement fund lump sum bene t) by way of salary, emoluments, fees or other remuneration and is, as respects such of ce, a member of or contributes to a pension fund or provident fund established— (aa) by law or for the bene t of holders of
of ce; or
(bb) for the bene t of employees of the person
from whom such income is derived,
[Sub-para. (ii) amended by s. 3 (1) (i) of Act 8 of 2007.] the employment of such employee or the holding of such of ce, as the case may be, as respects that part of his said income as is taken into account in the determination of the contributions made by him or on his behalf to such pension fund or provident fund; or
[Para. (a) substituted by s. 2 (1) (i) of Act 121 of 1984.] (b) (i) in relation to a partner in a partnership who was an employee of the partnership and who on becoming a partner retained membership of the pension fund of the partnership as if he or she had not ceased to be an employee, as respects the part of the partner’s income from the partnership in the form of the partner’s share of pro ts as does not exceed an amount equal to the partner’s pensionable emoluments during the 12 months which ended on the day on which the partner
ceased to be an employee; or
(ii) in relation to a partner in a partnership (other than
a partner contemplated in subparagraph (i)) the part of the partner’s income from the partnership in the form of the partner’s share of pro ts;
[Para. (b) substituted by s. 2 (1) (h) of Act 94 of 1983 and by s. 2 (1) (zD) of Act 3 of 2008.]
[De nition of ‘retirement-funding employment’ inserted by s. 3 (1) (d) of Act 104 of 1979.]
Prelex
Wording of de nition of ‘retirement annuity fund’ in force until its deletion wef 1 March 2015
‘retirement-funding employment’ means—
(a) in relation to any employee or the holder of an of ce (including a member of a body of persons whether or not established by or in terms of any law), who— (i) in the case of such employee, derives in respect of his employment any income constituting remuneration as de ned in paragraph 1 of the Fourth Schedule (but leaving out of account
* Although ‘1 March 2015’ was replaced by ‘1 March 2016’ by s. 119 (1) (d) of Act 43 of 2014 and the deletion of the de nition was therefore indicated as ‘pendlex’ text in the 2015 Compendium, the said s. 119 has been repealed by s. 155 (1) of Taxation Laws Amendment Act, 2015 (retrospectively), which, it is submitted, implies that the deletion of the de nition must in fact be deemed to have come into operation on 1 March 2015.]
‘retirement fund lump sum bene t’ means an amount determined in terms of paragraph 2 (1) (a) of the Second Schedule;
[De nition of ‘retirement fund lump sum bene t’ inserted by s. 3 (1) (j) of Act 8 of 2007 and substituted by s. 2 (1) (zE) of Act 3 of 2008 and by s. 7 (1) (zE) of Act 17 of 2009.]
46 SAIT CompendIum oF TAx LegISLATIon VoLume 1