Page 666 - SAIT Compendium 2016 Volume1

s 1 ESTATE DUTY ACT 45 OF 1955 s 1
1 De nitions
(1) In this Act and in any regulations made thereunder, unless the context otherwise indicates—
‘administration and distribution account’ . . . [De nition of ‘administration and distribution account’
deleted by s. 3 (a) of Act 92 of 1971.]
‘child’, in relation to any person, includes any person
adopted by him—
(a) under any law of the Republic; or
[Para. (a) substituted by s. 5 of Act 86 of 1987.]
(b) under the law of any country other than the Republic, provided the adopted person is under such law accorded the status of a legitimate child of the adoptive parent and the adoption was made at a time when the adoptive parent was ordinarily resident in
such country;
[De nition of ‘child’ inserted by s. 7 (a) of Act 77 of 1964.] ‘close corporation’ means a close corporation within the meaning of the Close Corporations Act, 1984 (Act 69
of 1984);
[De nition of ‘close corporation’ inserted by s. 6 (a) of Act 97 of 1993.]
‘Commissioner’ means the Commissioner for the South African Revenue Service appointed in terms of section 6 of the South African Revenue Service Act, 1997 (Act 34 of 1997), or the Acting Commissioner designated in terms of section 7 of that Act;
[De nition of ‘Commissioner’ deleted by s. 7 (b) of Act 77 of 1964, inserted by s. 9 (1) (a) of Act 106 of 1980 and substituted by s. 34 (1) of Act 34 of 1997 and by s. 271 of Act 28 of 2011.]
‘company’ includes any association incorporated or registered under any law in force in the Republic and any association which, although not so incorporated or registered, carries on business or has an of ce or place of business or maintains a share transfer register in the Republic;
‘domestic policy’ means any life policy as de ned in section 1 of the Long-term Insurance Act, 1998 (Act 52 of 1998), issued anywhere upon an application made or presented to a representative of an insurer (or to any person on behalf of such a representative) at any place in the Republic, excluding a life policy which has been made payable at a place outside the Republic at the request of the owner, but including any life policy issued outside the Republic which has subsequently been made payable in the Republic at the request of the owner;
[De nition of ‘domestic policy’ inserted by s. 6 of Act 30 of 2000.]
‘duty’ means estate duty payable under this Act; [De nition of ‘duty’ amended by s. 1 (1) (a) of Act 65 of
1960 and substituted by s. 3 (b) of Act 92 of 1971.] ‘executor’ means any person to whom letters of administration or of executorship have been granted by a Master in respect of the estate of a deceased person under any law relating to the administration of estates, or whose appointment as assumed executor of such an estate has been endorsed by a Master under such law, or who liquidates or distributes such an estate in pursuance of a direction of a Master, and includes a person acting or authorized to act under letters of administration or of executorship granted outside the Republic but signed and sealed by a Master for use within the Republic and, in any case where the estate is not required to be administered under the supervision of
the Master, the person administering the estate;
[De nition of ‘executor’ substituted by s. 3 (c) of Act 92 of 1971.]
(a) the price which could be obtained upon a sale of the property between a willing buyer and a willing seller dealing at arm’s length in an open market; or
(b) in relation to immovable property on which a bona de farming undertaking is being carried on in the Republic, the amount determined by reducing the price which could be obtained upon a sale of the property between a willing buyer and a willing seller dealing at arm’s length in an open market by 30 per cent;
[De nition of ‘fair market value’ inserted by s. 1 (a) of Act 59 of 1957, amended by s. 1 (1) (b) of Act 65 of 1960 and by s. 7 (1) of Act 87 of 1988 and substituted by s. 1 (1) (a) of Act 32 of 2005.]
‘family company’, in relation to a deceased person, means any company (other than a company whose shares are quoted on a recognized stock exchange) which at any relevant time was controlled or capable of being controlled directly or indirectly, whether through a majority of the shares thereof or any other interest therein or in any other manner whatsoever, by the deceased or by the deceased and one or more of his relatives;
[De nition of ‘family company’ inserted by s. 7 (c) of Act 77 of 1964, deleted by s. 6 (b) of Act 97 of 1993 and inserted by s. 2 (1) of Act 140 of 1993.]
‘liquidation and distribution account’ means the account required to be rendered by an executor to a Master in accordance with section 35 of the Administration of Estates Act, 1965 (Act 66 of 1965), or where the provisions of section 68 of the Administration of Estates Act, 1913 (Act 24 of 1913), apply, the account required to be rendered by an executor to a Master in accordance with the last-mentioned section;
[De nition of ‘liquidation and distribution account’ inserted by s. 3 (d) of Act 92 of 1971.]
‘Master’ in relation to any matter, property or estate, means the Master or Assistant Master of the High Court appointed under the Administration of Estates Act, 1965 who has jurisdiction in respect of that matter, property or estate;
[De nition of ‘Master’ amended by s. 3 (e) of Act 92 of 1971 and by s. 5 of Act 27 of 1997.]
‘relative’, in relation to any person, means the spouse of such person or anybody related to him or his spouse within the third degree of consanguinity, or any spouse of anybody so related, and for the purpose of determining the relationship between any child referred to in the de nition of ‘child’ in this subsection and any other person, such child shall be deemed to be related to its adoptive parent in the rst degree of consanguinity;
[De nition of ‘relative’ inserted by s. 7 (d) of Act 77 of 1964.]
‘South African Revenue Service’ means the South African Revenue Service established by section 2 of the South African Revenue Service Act, 1997;
[De nition of ‘South African Revenue Service’ inserted by s. 34 (1) of Act 34 of 1997.]
‘spouse’, in relation to any deceased person, includes a person who at the time of death of such deceased person was the partner of such person—
(a) in a marriage or customary union recognised in terms
of the laws of the Republic;
[Para. (a) substituted by s. 3 (a) of Act 5 of 2001.]
(b) in a union recognised as a marriage in accordance
with the tenets of any religion; or
[Para. (b) substituted by s. 3 (a) of Act 5 of 2001.]
(c) in a same-sex or heterosexual union which the Commissioner is satis ed is intended to be permanent:
[Para. (c) substituted by s. 3 (a) of Act 5 of 2001.]
658 SAIT CompendIum oF TAx LegISLATIon VoLume 1
‘fair market value’ means—