Page 73 - SAIT Compendium 2016 Volume1

s 8 INCOME TAX ACT 58 OF 1962 s 8
and shall be included in the taxpayer’s income for the year of assessment during which such further asset was so lost, sold or disposed of in addition to any recovery or recoupment referred to in paragraph (a).
[Para. (f) substituted by s. 8 (1) (d) of Act 21 of 1995.]
(g) . . .
[Para. (g) added by s. 9 (1) (b) of Act 88 of 1965, amended
by s. 6 (d) of Act 141 of 1992 and retrospectively deleted by s. 5 (1) (b) of Act 43 of 2014 – date of commencement deemed to have been 12 December 2013.]
(h) . . .
[Para. (h) added by s. 9 (1) (b) of Act 88 of 1965 and
retrospectively deleted by s. 5 (1) (b) of Act 43 of 2014 – date of commencement deemed to have been
12 December 2013.]
(i) . . .
[Para. (i) added by s. 9 (1) (b) of Act 88 of 1965 and
retrospectively deleted by s. 5 (1) (b) of Act 43 of 2014 – date of commencement deemed to have been
12 December 2013.]
(j) . . .
[Para. (j) added by s. 9 (1) (b) of Act 88 of 1965 and
retrospectively deleted by s. 5 (1) (b) of Act 43 of 2014 – date of commencement deemed to have been
12 December 2013.]
(k) For the purposes of paragraph (a), where during any year of assessment any person has—
(i) donated any asset;
(ii) in the case of a company, transferred in whatever
manner or form any asset to any holder of a share in
that company; or
[Sub-para. (ii) substituted by s. 9 (1) (g) of Act 31 of 2013 – date of commencement: 12 December 2013.]
(iii) disposed of any asset to a person who is a connected person in relation to that person,
in respect of which a deduction or an allowance has been granted to such person in terms of any of the provisions referred to in that paragraph, that person shall be deemed to have disposed of that asset for an amount equal to the market value of that asset as at the date of that donation, transfer or disposal.
[Para. (k) added by s. 4 (1) of Act 113 of 1993, substituted by s. 7 (g) of Act 19 of 2001 and by s. 21 (1) (b) of Act 60 of 2001, amended by s. 11 (1) (c) and (d) of Act 74 of 2002 and substituted by s. 5 (b) of Act 20 of 2006.]
(l) For the purposes of paragraph (a), where—
(i) any person was entitled to a deduction in respect of any interest or related nance charges (including a discount or premium), which was incurred or deemed to have been incurred by such person in relation to any nancial arrangement during any year of assessment and such interest or related nance charges were allowed as a deduction in terms of the provisions of this Act during such year of assessment in the hands
of such person;
(ii)such person has transferred such nancial
arrangement during any year of assessment to any
other person; and
(iii) any obligation or part thereof in respect of such
interest or related nance charges which such person is legally liable to pay has, as a result of such transfer, been transferred to such other person,
such person shall be deemed to have recovered or recouped an amount equal to the amount of such obligation or part thereof so transferred during the year of assessment in which such obligation or part thereof has been so transferred.
(m) . . .
[Para. (m) added by s. 6 (1) (b) of Act 28 of 1997 and
deleted by s. 9 (1) (c) of Act 22 of 2012 – date of commencement: 1 January 2013. The deletion applies in respect of years of assessment commencing on or after that date.]
(n) Where a taxpayer disposes of an industrial asset contemplated in section 12G or a manufacturing asset contemplated in section 12I before completion of the write off period of that asset for purposes of section 11 (e), 12C or 13, as applicable, there shall be included in the taxpayer’s income, all amounts allowed to be deducted in respect of that industrial asset under section 12G or manufacturing asset under section 12I, whether in the current year or any previous year of assessment, which have been recovered or recouped during the current year of assessment, in addition to the inclusion of those amounts in terms of paragraph (a).
[Para. (n) added by s. 7 (h) of Act 19 of 2001 and substituted by s. 9 of Act 60 of 2008.]
(o) . . .
[Para. (o) added by s. 9 (1) (d) of Act 22 of 2012 – date of commencement: 1 January 2013. This paragraph applied in respect of government grants received on or after that
date. However, the said s. 9 (1) (d) was retrospectively deleted by s. 192 (2) (a) of Act 31 of 2013, also wef 1 January 2013.]
(p) . . .
[Para. (p) added by s. 9 (1) (d) of Act 22 of 2012 – date of commencement: 1 January 2013. This paragraph applied in respect of government grants received on or after that
date. However, the said s. 9 (1) (d) was retrospectively deleted by s. 192 (2) (a) of Act 31 of 2013, also wef 1 January 2013.]
(4A) The provisions of subsection (4) (a), (e), (f) or (k) shall not apply in respect of any amount which is deemed to have been allowed as a deduction in terms of subparagraph (ix) of the proviso to section 11 (e), section 12B (4B), section 12C (4A), section 12D (3A), section 12DA (4), section 12F (3A), section 13 (1A), section 13bis (3A), section 13ter (6A), section 13quin (3) or section 37B (4).
[Sub-s. (4A) inserted by s. 6 (b) of Act 59 of 2000 and substituted by s. 5 (1) (c) of Act 3 of 2008.]
(5) (a) Any amount which has been paid, whether in the form of rent or otherwise, by any person for the right of use or occupation of any movable or immovable property and has been allowed as a deduction in the determination of such person’s taxable income, and which or the equivalent of which is upon the subsequent acquisition of such property by that or any other person applied in reduction or towards settlement of the purchase price of such property, shall be included in the income of the person by whom the property is acquired as aforesaid for the year of assessment in which such person exercises the option or concludes the agreement, as the case may be, in consequence of which the property is acquired by him: Provided that the provisions of this subsection shall not apply in any case where, in consequence of the acquisition of such property, the person who has acquired the property or any other person has derived a taxable bene t the cash equivalent of which has been included in his gross income in terms of the provisions of paragraph (i) of the de nition of ‘gross income’ in section 1.
[Para. (a) amended by s. 4 (e) of Act 96 of 1985.]
(b) Where any amount has been paid by any person for the right of use or occupation of any property which is thereafter acquired by that or any other person for a
[Para. (l) added by s. 6 (1) (b) of Act 36 of 1996.]
SAIT CompendIum oF TAx LegISLATIon VoLume 1 65
INCOME TAX ACT – SECTIONS