Page 667 - SAIT Compendium 2016 Volume1

s 1 ESTATE DUTY ACT 45 OF 1955 s 3
Provided that a marriage or union contemplated in paragraph (b) or (c) shall, in the absence of proof to the contrary, be deemed to be a marriage or union without community of property;
[De nition of ‘spouse’ inserted by s. 1 (1) of Act 59 of 2000 and amended by s. 3 (b) of Act 5 of 2001.]
‘Secretary’ . . .
[De nition of ‘Secretary’ inserted by s. 7 (d) of Act 77 of
1964 and deleted by s. 9 (1) (b) of Act 106 of 1980.] ‘stocks or shares’, in relation to any company, means any part of the share capital or members’ interest of that company and includes any debenture, debenture stock or
any other like form of marketable security;
[De nition of ‘stocks or shares’ substituted by s. 6 (c) of Act 97 of 1993.]
‘Tax Administration Act’, means the Tax Admini- stration Act, 2011.
[De nition of ‘Tax Administration Act’ added by s. 271 of Act 28 of 2011.]
[Sub-s. (1), previously s. 1, renumbered by s. 271 of Act 28 of 2011.]
(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. 1 (b) of Act 59 of 1957, amended by s. 1 (1) (c) of Act 65 of 1960, by s. 3 (g) of Act 92 of 1971 and by s. 8 of Act 88 of 1996, deleted by s. 1 (1) (b) of Act 32 of 2005 and added by s. 271 of Act 28 of 2011.]
2 Levy of estate duty
(1) There shall be charged, levied and collected in respect of the estate of every person who dies on or after the rst day of April, 1955, a duty to be known as an estate duty.
(2) Estate duty shall be charged upon the dutiable amount of the estate calculated in accordance with the provisions of this Act and shall be levied at the rate set out in the First Schedule.
[Sub-s. (2) amended by s. 8 (1) of Act 87 of 1988.]
3 What constitutes an estate
(1) For the purposes of this Act the estate of any person shall consist of all property of that person as at the date of his death and of all property which in accordance with this Act is deemed to be property of that person at that date.
(2) ‘Property’ means any right in or to property, movable or immovable, corporeal or incorporeal, and includes—
(a) any duciary, usufructuary or other like interest in
property (including a right to an annuity charged upon property) held by the deceased immediately prior to his death;
(b) any right to an annuity (other than a right to an annuity charged upon any property) enjoyed by the deceased immediately prior to his death which accrued to some other person on the death of the deceased;
(bA) so much of the amount of any contribution made by the deceased in consequence of membership or past membership of any pension fund, provident fund, or retirement annuity fund, as was not allowed as a deduction in terms of section 11 (k) or (n) of the Income Tax Act, 1962 (Act 58 of 1962), or paragraph 2 of the Second Schedule to that Act or, as was not exempt in terms of section 10C of that Act in determining the taxable income as de ned in section 1 of that Act, of the deceased,
[Para. (bA) inserted by s. 2 (1) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 January 2016; the insertion applies iro the estate
of a person who dies on or after 1 January 2016 iro contributions made on or after 1 March 2015.]
but does not include—
(c) in the case of a deceased who was not ordinarily
(d)
(e)
(f)
(g)
(h) (i)
resident in the Republic at the date of his death, any right in immovable property situate outside the Republic;
[Para. (c) substituted by s. 2 (a) of Act 65 of 1960.]
any right in movable property physically situate outside the Republic if the deceased was not ordinarily resident in the Republic at the date of his death;
[Para. (d) amended by s. 2 (b) of Act 65 of 1960.]
any debt not recoverable or right of action not enforceable in the Courts of the Republic if the deceased was not ordinarily resident in the Republic at the date of his death;
[Para. (e) substituted by s. 2 (c) of Act 65 of 1960.]
any goodwill, licence, patent, design, trademark, copyright or other similar right not registered or enforceable in the Republic or attaching to any trade, business or profession in the Republic if the deceased was not ordinarily resident in the Republic at the date of his death;
[Para. (f) amended by s. 2 (d) of Act 65 of 1960.]
in the case of a deceased who was not ordinarily resident in the Republic at the date of his death—
(i) any stocks or shares held by him in a body corporate which is not a company; and
(ii) any stocks or shares held by him in a company, provided any transfer whereby any change of ownership in such stocks or shares is recorded is not required to be registered in the Republic;
[Para. (g) substituted by s. 2 (e) of Act 65 of 1960.]
any rights to any income produced by or proceeds derived from any property referred to in paragraph (e), (f) or (g);
so much of any bene t which is due and payable by, or in consequence of membership or past membership of, any pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund as de ned in the Income Tax Act, 1962 (Act 58 of 1962), on or as a result of the death of the deceased.
[Para. (i) added by s. 2 (1) (a) of Act 60 of 2008.]
(3) Property which is deemed to be property of the
deceased includes—
(a) so much of any amount due and recoverable under
any policy of insurance which is a ‘domestic policy’, upon the life of the deceased as exceeds the aggregate amount of any premiums or consideration proved to the satisfaction of the Commissioner to have been paid by any person who is entitled to the amount due under the policy, together with interest at six per cent per annum calculated upon such premiums or consideration from the date of payment to the date of death: Provided that the foregoing provisions of this paragraph shall not apply in respect of any amount due and recoverable under a policy of insurance, if—
(i) the amount due under such policy is recoverable by the surviving spouse or child of the deceased under a duly registered ante-nuptial or post- nuptial contract; or
(iA) the Commissioner is satis ed that the policy was taken out or acquired by a person who on the date of death of the deceased was a partner of the deceased, or held any share or like interest in a company in
SAIT CompendIum oF TAx LegISLATIon VoLume 1
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ESTATE DUTY ACT