Page 668 - SAIT Compendium 2016 Volume1
P. 668
s 3
ESTATE DUTY ACT 45 OF 1955 s 4
which the deceased on that date held any share or like interest, for the purpose of enabling that person to acquire the whole or part of—
(aa)the deceased’s interest in the partnership
concerned; or
(bb) the deceased’s share or like interest in that
company and any claim by the deceased
against that company,
and that no premium on the policy was paid or borne by the deceased; or
[Sub-para. (iA) inserted by s. 2 (1) (a) of Act 92 of 1983 and substituted by s. 4 (1) (a) of Act 81 of 1985.]
(ii) except where the provisions of paragraph (i) or (iA) of this proviso apply, the Commissioner is satis ed and remains satis ed that such policy was not effected by or at the instance of the deceased, that no premium on such policy was paid or borne by the deceased, that no amount due or recoverable under such policy has been or will be paid into the estate of the deceased and that no such amount has been or will be paid to, or utilized for the bene t of, any relative of the deceased or any person who was wholly or partly dependent for his maintenance upon the deceased or any company which was at any time a family company in relation to the deceased;
[Sub-para. (ii) amended by s. 2 (1) (b) of Act 92 of 1983.]
[Para. (a) amended by s. 2 (1) (a) of Act 81 of 1965, substituted by s. 4 (1) (a) of Act 92 of 1971 and amended by s. 7 of Act 30 of 2000.]
(a)bis . . .
[Para. (a)bis inserted by s. 2 (1) (b) of Act 81 of 1965,
substituted by s. 3 (1) of Act 102 of 1979, by s. 10 (1) of Act 106 of 1980 and by s. 2 (1) (c) of Act 92 of 1983, amended by s. 6 of Act 27 of 1997, substituted by s. 13 of Act 30 of 1998 and deleted by s. 2 (1) (b) of Act 60 of 2008.]
(b) any property donated by the deceased in terms of a donation which was exempt from donations tax under section 56 (1) (c) or (d) of the Income Tax Act, 1962 (Act 58 of 1962), if that property is not otherwise included as property of the deceased for purposes of this Act;
[Para. (b) substituted by s. 5 (1) of Act 31 of 2005.]
(c) . . .
[Para. (c) amended by s. 8 (a) and (b) of Act 77 of 1964,
by s. 3 (1) of Act 89 of 1972 and by s. 4 (1) (b) of Act 81 of 1985 and deleted by s. 9 (1) (a) of Act 87 of 1988.]
(cA)the amount of any claim acquired by the estate of the deceased under section 3 of the Matrimonial Property Act, 1984, against the deceased’s spouse or the estate of his deceased spouse, in respect of any accrual contemplated in that section;
[Para. (cA) inserted by s. 4 (1) (c) of Act 81 of 1985.]
(cB). . .
[Para. (cB) inserted by s. 9 (1) (b) of Act 87 of 1988 and
deleted by s. 7 (a) of Act 97 of 1993.]
(d) property (being property not otherwise chargeable under this Act or the full value of which is not otherwise required to be taken into account in the determination of the dutiable amount of the estate) of which the deceased was immediately prior to his death competent to dispose for his own bene t or for
the bene t of his estate; and
[Para. (d) substituted by s. 2 (f) of Act 65 of 1960.]
(4) . . .
[Sub-s. (4) amended by s. 8 (c) of Act 77 of 1964 and by s. 4 (1) (b) of Act 92 of 1971, substituted by s. 9 (1) (c) of Act 87 of 1988 and deleted by s. 7 (b) of Act 97 of 1993.]
(5) For purposes of paragraph (d) of subsection (3)— (a) the term ‘property’ shall be deemed to include the
pro ts of any property;
(b) a person shall be deemed to have been competent to
dispose of any property—
(i) if he had such power as would have enabled him,
if he were sui juris, to appropriate or dispose of such property as he saw  t whether exercisable by will, power of appointment or in any other manner;
(ii) if under any deed of donation, settlement, trust or other disposition made by him he retained the power to revoke or vary the provisions thereof relating to such property;
(c) the power to appropriate, dispose, revoke or vary contemplated in paragraph (b) shall be deemed to exist if the deceased could have obtained such power directly or indirectly by the exercise, either with or without notice, of power exercisable by him or with his consent;
(d) the expression ‘property of which the deceased was immediately prior to his death competent to dispose’ shall not include the share of a spouse of a deceased in any property held in community of property between the deceased and such spouse immediately prior to his death.
[Sub-s. (5) inserted by s. 2 (g) of Act 65 of 1960.]
4 Net value of an estate
The net value of any estate shall be determined by making the following deductions from the total value of all property included therein in accordance with section 3, that is to say—
(a) so much of the funeral, tombstone and death-bed expenses of the deceased which the Commissioner considers to be fair and reasonable;
[Para. (a) substituted by s. 8 (1) (a) of Act 97 of 1993.] (b) all debts due by the deceased to persons ordinarily resident within the Republic (other than any debt which constitutes a claim by such a person to property donated by the deceased in terms of a donation which was exempt from donations tax under section 56 (1) (c) or (d) of the Income Tax Act, 1962 (Act 58 of 1962)), which it is proved to the satisfaction of the Commissioner have been discharged from property
included in the estate;
[Para. (b) substituted by s. 6 (1) (a) of Act 31 of 2005.] (c) all costs which have been allowed by the Master in the administration and liquidation of the estate, other than expenses incurred in the management and control of any income accruing to the estate after the
date of death;
(d) all expenditure incurred in carrying out the
requirements of the Master or the Commissioner in
pursuance of the provisions of this Act;
(e) the amount included in the total value of all property of the deceased as representing the value of any right in or to property situate outside the Republic acquired
by the deceased—
(i) before he became ordinarily resident in the
Republic for the  rst time; or
(ii) after he became ordinarily resident in the
Republic for the  rst time, by—
(aa) a donation if at the date of the donation the
donor was a person (other than a company) not ordinarily resident in the Republic; or
660 SAIT CompendIum oF TAx LegISLATIon VoLume 1


































































































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