Page 672 - SAIT Compendium 2016 Volume1

s 5 ESTATE DUTY ACT 45 OF 1955 s 8
of redemption of preference shares, if, by the exercise of such power he could have conferred upon himself any bene t or advantage in respect of the assets or pro ts of the company;
(vi) . . .
[Sub-para. (vi) deleted by s. 10 (c) of Act 71 of 1961.]
[Para. (f)bis inserted by s. 4 (c) of Act 65 of 1960 and amended by s. 10 (a) of Act 71 of 1961 and by s. 1 (c) of Act 19 of 2001.]
(f)ter in the case of any property referred to in paragraph (d) of subsection (3) of section three which consists only of pro ts, an amount determined by capitalizing at twelve per cent such amount as the Commissioner may consider reasonable as representing the annual value of such pro ts over the expectation of life of the deceased immediately prior to the date of his death, and in the case of any other property referred to in the said paragraph the amount remaining after deducting from the fair market value of that property as at the date of death of the deceased the expenses and liabilities which the deceased would have had to bear or assume if he had at that date exercised his power of disposition;
[Para. (f)ter inserted by s. 4 (c) of Act 65 of 1960 and amended by s. 7 (1) (f) of Act 114 of 1977.]
(g) in the case of any other property, the fair market value of such property as at the date of death of the deceased person: Provided that in any case in which, as a result of conditions imposed by any person whomsoever, the value of any property could or would be reduced for any reason or after the moment of death, the value of such property shall, unless the Commissioner otherwise directs, be determined as though those conditions had not been imposed.
[Para. (g) amended by s. 4 (d) of Act 65 of 1960 and by s. 1 (d) of Act 19 of 2001.]
[Sub-s. (1) amended by s. 1 (a) of Act 19 of 2001.] (1A) Where any company referred to in paragraph (f) bis of subsection (1) owns immovable property on which bona de farming operations are being carried on in the Republic, the value of such immovable property shall, in so far as it is relevant for the purposes of determining in terms of that subsection the value of any shares in such company, be determined in the manner prescribed in the
de nition of ‘fair market value’ in section 1.
[Sub-s. (1A) inserted by s. 7 (1) of Act 81 of 1985.]
(2) For the purposes of paragraphs (b) and (f) of subsection (1) and for purposes of determining the value of any deduction contemplated in section 4, the annual value of the right of enjoyment of a property means an amount equal to twelve per cent upon the fair market value of the full ownership of the property which is subject to any duciary, usufructuary or other like interest: Provided that where the Commissioner is satis ed that the property which is subject to any such interest could not reasonably be expected to produce an annual yield equal to 12 per cent on such value of the property, the Commissioner may x such sum as representing the annual yield as may be reasonable, and the sum so xed shall be deemed to be the annual value of the right of enjoyment of such property: Provided further that where the property which is subject to any such interest consists of books, pictures, statuary or other objects of art, the annual value of the right of enjoyment thereof shall for the purposes of paragraph (b) of subsection (1) be deemed to be the average net receipts (if any) derived by the person entitled to such right of enjoyment of such property during the three years immediately preceding the date of death of the deceased.
[Sub-s. (2) amended by s. 7 (1) (g) of Act 114 of 1977, by s. 2 of Act 136 of 1991, by s. 1 (e) of Act 19 of 2001 and by s. 12 (1) (b) of Act 60 of 2001.]
(3) Where for the purposes of subsection (1) any calculation is required to be made over the expectation of life of any person, such calculation shall, in the case of a person who is not a natural person, be made over a period of fty years.
(4) Whenever the value of any property included in the estate of a deceased is reduced as a result of the continuance after the death of that person of any right (other than a duciary, usufructuary or other like interest) to the use or occupation of property for no consideration or for a consideration which in the opinion of the Commissioner is not an adequate consideration, the value of such property shall for the purposes of subsection (1) be determined as though the said right had not been granted.
[Sub-s. (4) added by s. 3 (b) of Act 59 of 1957 and substituted by s. 12 (1) (b) of Act 87 of 1988.]
(5) For the purposes of subsection (1) (f)bis, the term ‘shares’ includes any members’ interests or any class of shares, stock, debenture stock, debentures or right to purchase members’ interests or to subscribe for or purchase shares, stocks or debentures, and the term ‘company’ includes any company or close corporation incorporated in the Republic or elsewhere.
[Sub-s. (5) inserted by s. 4 (e) of Act 65 of 1960, amended by s. 10 (d) of Act 71 of 1961 and substituted by s. 9 (c) of Act 97 of 1993.]
[S. 5 amended by s. 12 (1) (a) of Act 60 of 2001.]
6 Administration of Act
(1) The Commissioner shall be responsible for the administration of this Act.
(2) The powers conferred and the duties imposed upon the Commissioner by this Act may be exercised or performed by the Commissioner or by any SARS of cial under the control, direction or supervision of the Commissioner.
[Sub-s. (2) substituted by s. 271 of Act 28 of 2011.]
(3) 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 are, to the extent not regulated in this Act, regulated by the Tax Administration Act.
[Sub-s. (3) substituted by s. 271 of Act 28 of 2011.]
7 Rendering of returns
(1) Every executor or, if he or she is called upon by the Commissioner to do so, any person having the control of or any interest in any property included in the estate, shall submit to the Commissioner a return disclosing the amount claimed by the person submitting the return to represent the dutiable amount of the estate together with full particulars regarding—
(a) the property of the deceased as at the date of his
death;
(b) property which, in accordance with subsection (3)
of section three, is deemed to be property of the
deceased as at that date;
(c) any deduction claimed in terms of section four.
[Sub-s. (1) amended by s. 271 of Act 28 of 2011.]
(2) . . .
[Sub-s. (2) deleted by s. 271 of Act 28 of 2011.]
8 ...
[S. 8 amended by s. 4 of Act 59 of 1957, by s. 12 (a) and (b) of Act 77 of 1962 and by s. 2 (1) of Act 32 of 2005 and repealed by s. 271 of Act 28 of 2011.]
664 SAIT CompendIum oF TAx LegISLATIon VoLume 1