Page 57 - SAIT Compendium 2016 Volume1

s 1 INCOME TAX ACT 58 OF 1962 s 2
‘territory’ . . .
[De nition of ‘territory’ inserted by s. 6 (1) (h) of Act 89 of 1969, substituted by s. 2 (h) of Act 141 of 1992 and
deleted by s. 2 (j) of Act 59 of 2000.]
‘this Act’ includes the regulations;
‘trade’ includes every profession, trade, business,
employment, calling, occupation or venture, including the letting of any property and the use of or the grant of permission to use any patent as de ned in the Patents Act or any design as de ned in the Designs Act or any trade mark as de ned in the Trade Marks Act or any copyright as de ned in the Copyright Act or any other property which is of a similar nature;
[De nition of ‘trade’ substituted by s. 6 (1) (i) of Act 89 of 1969, by s. 2 (1) (d) of Act 129 of 1991, by s. 10 (1) (k) of Act 53 of 1999 and by s. 4 (1) (zZj) of Act 31 of 2013 – date of commencement: 12 December 2013.]
‘Trade Marks Act’ means the Trade Marks Act, 1993 (Act 194 of 1993);
[De nition of ‘Trade Marks Act’ inserted by s. 4 (1) (zZk) of Act 31 of 2013 – date of commencement: 12 December 2013.]
‘trading stock’— (a) includes—
(i) anything produced, manufactured, constructed, assembled, purchased or in any other manner acquired by a taxpayer for the purposes of manufacture, sale or exchange by the taxpayer or on behalf of the taxpayer;
(ii) anything the proceeds from the disposal of which form or will form part of the taxpayer’s gross income, otherwise than—
(aa)in terms of paragraph (j) or (m) of the
de nition of ‘gross income’;
(bb) in terms of paragraph 14 (1) of the First
Schedule; or
(cc) as a recovery or recoupment contemplated
in section 8 (4) which is included in gross income in terms of paragraph (n) of the de nition of ‘gross income’; or
(iii) any consumable stores and spare parts acquired by the taxpayer to be used or consumed in the course of the taxpayer’s trade; but
(b) does not include—
(i) a foreign currency option contract; or
(ii) a forward exchange contract, as de ned in section 24I (1);
[De nition of ‘trading stock’ substituted by s. 2 (1) (e) of Act 101 of 1990, by s. 2 (1) (m) of Act 113 of 1993 and by s. 13 (1) (k) of Act 30 of 2000, amended by s. 17 (1) (e) of Act 60 of 2001 and by s. 6 (1) (t) of Act 74 of 2002 and substituted by s. 6 (1) (zI) of Act 7 of 2010.]
‘trust’ means any trust fund consisting of cash or other assets which are administered and controlled by a person acting in a duciary capacity, where such person is appointed under a deed of trust or by agreement or under the will of a deceased person;
[De nition of ‘trust’ inserted by s. 2 (i) of Act 141 of 1992.] ‘trustee’, in addition to every person appointed or constituted as such by act of parties, by will, by order of declaration of court or by operation of law, includes an executor or administrator, tutor or curator, and any person having the administration or control of any property subject to a trust, usufruct, deicommissum or other limited interests or acting in any duciary capacity or having, either in a private or in an of cial capacity, the possession, direction, control or management of any
property of any person under legal disability;
‘Value-Added Tax Act’ means the Value-Added Tax Act, 1991 (Act 89 of 1991);
[De nition of ‘Value-Added Tax Act’ inserted by s. 4 (1) (zZl) of Act 31 of 2013 – date of commencement: 12 December 2013.]
‘water services provider’ means a person who provides water supply services and sanitation services and who is— (a) a public entity regulated under the Public
Finance Management Act;
[Para. (a) substituted by s. 4 (1) (zZm) of Act 31 of 2013 – date of commencement: 12 December 2013.]
(b)
(c) (d)
a wholly owned subsidiary or entity of a public entity contemplated in paragraph (a) if the operations of the subsidiary or entity are ancillary or complementary to the operations of that public entity;
[Para. (b) substituted by s. 3 (1) (m) of Act 8 of 2007.]
a company as contemplated in paragraph (a) of the de nition of ‘company’, which is wholly owned by one or more municipalities; or
a board or institution which has powers similar to a water board established in terms of the Water Services Act, 1997 (Act 108 of 1997), and would have fallen within the ambit of the de nition of ‘local authority’ prior to the coming into operation of section 3 (1) (h) of the Revenue Laws Amendment Act, 2006;
[De nition of ‘water services provider’ inserted by s. 3 (1) (s) of Act 20 of 2006.]
‘withdrawal interest’ means the value of the member’s share of the pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund value, as determined in terms of the rules of the fund, immediately prior to the date on which the member becomes entitled to a bene t from that fund because of an event other than the member attaining normal retirement age, as determined by the rules of the fund;
[De nition of ‘withdrawal interest’ inserted by s. 2 (1) (zH) of Act 3 of 2008.]
‘year of assessment’ means any year or other period in respect of which any tax or duty leviable under this Act is chargeable, and any reference in this Act to any year of assessment ending the last or the twenty-eighth or the twenty-ninth day of February shall, unless the context otherwise indicates, in the case of a company or a portfolio of a collective investment scheme in securities be construed as a reference to any nancial year of that company or portfolio ending during the calendar year in question. [De nition of ‘year of assessment’ substituted by s. 1 (e) of
Act 6 of 1963, amended by s. 4 (f) of Act 72 of 1963 and substituted by s. 4 (f) of Act 90 of 1964, by s. 9 (c) of Act 30 of 2002 and by s. 7 (1) (zG) of Act 17 of 2009.]
[Sub-s. (1), previously s. 1, renumbered by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(2) Unless the context indicates otherwise, a word or expression to which a meaning has been assigned in the Tax Administration Act bears that meaning for purposes of this Act.
[Sub-s. (2) added by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
CHAPTER I ADMINISTRATION (ss. 2–4A)
2 Administration of Act
(1) The Commissioner is responsible for carrying out the provisions of this Act.
(2) Administrative requirements and procedures for purposes of the performance of any duty, power or obligation or the exercise of any right in terms of this Act
SAIT CompendIum oF TAx LegISLATIon VoLume 1 49
INCOME TAX ACT – SECTIONS