Page 683 - SAIT Compendium 2016 Volume1

s1
TRANSFER DUTY ACT 40 OF 1949 s 1
means so much of the fair market value, as at the date of acquisition of that share, of any property held by that company which constitutes property as contemplated in paragraphs (a) and (c) of that de nition (without taking into account any lease agreement or any liability in respect of any loan in relation to that residential property) as is attributable to that share:
[Para. (d) inserted by s. 1 (1) (c) of Act 17 of 2009 and substituted by s. 1 (b) of Act 24 of 2011.]
Provided that—
(a) the fair market value of any property of a company
or a trust which constitutes a contingent right in property of a trust, as contemplated in paragraphs (b) (iii) and (c) (iii), shall be equal to the fair value of that contingent right as determined in terms of paragraph (c) of this de nition; and
(b) where property, has been acquired by the exercise of an option to purchase or a right of pre-emption, the fair value in relation to that property shall be the fair market value thereof as at the date upon which the option or right of pre-emption was acquired by the person who exercised the option or right of pre- emption;
[De nition of ‘fair value’ substituted by s. 2 (1) (a) of Act 74 of 2002.]
‘mining asset’ means any building, shaft, excavation, borehole, structure, xture or other improvement or work used or intended to be used for purposes of mining, or purposes incidental thereto, including the accommodation of mine personnel, but does not include any building or structure on land in a proclaimed township.
[De nition of ‘mining asset’ inserted by s. 11 of Act 80 of 1959.]
‘person’ includes the estate of a deceased or insolvent person and any trust;
[De nition of ‘person’ inserted by s. 8 (1) (a) of Act 37 of 1996.]
‘property’ means land in the Republic and any xtures thereon, and includes—
(a) any real right in land but excluding any right under
a mortgage bond or a lease of property other than a lease referred to in paragraph (c);
[Para. (a) substituted by s. 1 (c) of Act 24 of 2011.]
(b) . . .
[Para. (b) deleted by s. 1 (d) of Act 24 of 2011.]
(c) any right to minerals (including any right to mine for
minerals) and a lease or sub-lease of such a right;
(d) a share (other than a share contemplated in paragraph (g)) or member’s interest in a residential property
company;
[Para. (d) added by s. 2 (1) (b) of Act 74 of 2002 and substituted by s. 1 (1) (d) of Act 17 of 2009.]
(e) a share (other than a share contemplated in paragraph (g)) or member’s interest in a company which is a holding company (as de ned in the Companies Act, 1973 (Act 61 of 1973), or as de ned in the Close Corporations Act, 1984 (Act 69 of 1984), as the case may be), if that company and all of its subsidiary companies (as de ned in the Companies Act, 1973, or Close Corporations Act, 1984), would be a residential property company if all such companies were regarded as a single entity;
(d) or (e), held by a discretionary trust (other than a special trust as de ned in section 1 of the Income Tax Act, 1962 (Act 58 of 1962)), the acquisition of which is—
(i)a consequence of or attendant upon the conclusion of any agreement for consideration with regard to property held by that trust;
(ii) accompanied by the substitution or variation of that trust’s loan creditors, or by the substitution or addition of any mortgage bond or mortgage bond creditor; or
(iii) accompanied by the change of any trustee of that trust; and
[Para. (f) added by s. 2 (1) (b) of Act 74 of 2002.]
(g) a share in a share block company as de ned in the
Share Blocks Control Act, 1980 (Act 59 of 1980);
[Para. (g) added by s. 1 (1) (e) of Act 17 of 2009.] [De nition of ‘property’ amended by s. 1 (b) of Act 5 of
2001.]
‘registration of cer’ means the person who is in charge of a deeds registry;
‘Republic’ means the territory of the Republic of South Africa and includes the territorial waters, the contiguous zone and the continental shelf referred to respectively in sections 4, 5 and 8 of the Maritime Zones Act, 1994 (Act 15 of 1994);
[De nition of ‘Republic’ inserted by s. 5 of Act 103 of 1969, deleted by s. 2 of Act 87 of 1988 and inserted by s. 1 (c) of Act 5 of 2001.]
‘residential property’ means any dwelling-house, holiday home, apartment or similar abode, improved or unimproved land zoned for residential use in the Republic (including any real right thereto), other than—
(a) an apartment complex, hotel, guesthouse or similar structure consisting of ve or more units held by a person which has been used for renting to ve or more persons, who are not connected persons, as de ned in the Income Tax Act, 1962 (Act 58 of 1962), in relation to that person; or
(b) any ‘ xed property’ of a ‘vendor’ forming part of an ‘enterprise’ all as de ned in section 1 of the Value- Added Tax Act, 1991 (Act 89 of 1991);
[De nition of ‘residential property’ inserted by s. 2 (1) (c) of Act 74 of 2002.]
‘residential property company’ means any company, other than a REIT as de ned in section 1 of the Income Tax Act, 1962 (Act 58 of 1962), that holds property that constitutes—
[Text preceding para. (a) substituted by s. 1 of Act 31 of 2013 – date of commencement: 12 December 2013.]
(a) residential property; or
(b) a contingent right contemplated in paragraph (f) of
the de nition of ‘property’,
and where the fair value of that property or contingent right comprises more than 50 per cent of the aggregate fair market value of all the assets, as de ned in paragraph 1 of the Eighth Schedule to the Income Tax Act, 1962, (other than nancial instruments as de ned in section 1 of that Act or any coin made mainly from gold or platinum), held by that company on the date of acquisition of an interest in that company;
[De nition of ‘residential property company’ inserted by s. 2 (1) (c) of Act 74 of 2002.]
‘Secretary’ . . .
[De nition of ‘Secretary’ inserted by s. 1 (b) of Act 77 of
1964 and deleted by s. 4 (1) (c) of Act 106 of 1980.] 675
(f)
[Para. (e) inserted by s. 2 (1) (b) of Act 74 of 2002 and substituted by s. 1 (1) (d) of Act 17 of 2009.]
a contingent right to any residential property or share or member’s interest, contemplated in paragraph
SAIT CompendIum oF TAx LegISLATIon VoLume 1
TRANSFER DUTY ACT