Page 86 - SAIT Compendium 2016 Volume1

s 9A INCOME TAX ACT 58 OF 1962 s 9C
accrued to the person contemplated in that subsection in the following year of assessment.
[Sub-s. (2) substituted by s. 6 (1) (a) of Act 3 of 2008.]
(3) Where any amount, or any portion of any amount, of the net income of a controlled foreign company in respect of a foreign tax year of the controlled foreign company may not be remitted to the Republic for the reasons contemplated in subsection (1), there shall be allowed to be deducted from the net income of the controlled foreign company for that foreign tax year an amount equal to so much of the amount or portion which may not be remitted.
[Sub-s. (3) substituted by s. 23 (1) of Act 24 of 2011 –
date of commencement: 1 January 2012. The substituted subsection applies in respect of foreign tax years of controlled foreign companies ending during years of assessment commencing on or after that date.]
(4) The amount or portion which may not be remitted as contemplated in subsection (3) shall be deemed to be an amount received by or accrued to the controlled foreign company contemplated in that subsection in the following foreign tax year of the controlled foreign company.
[Sub-s. (4) substituted by s. 6 (1) (b) of Act 3 of 2008 and by s. 23 (1) of Act 24 of 2011 – date of commencement: 1 January 2012. The substituted subsection applies
in respect of foreign tax years of controlled foreign companies ending during years of assessment commencing on or after that date.]
[S. 9A inserted by s. 8 (1) of Act 85 of 1987, amended by s. 8 (1) of Act 141 of 1992, by s. 8 of Act 21 of 1994 and by s. 8 of Act 28 of 1997, repealed by s. 8 of Act 59 of 2000, inserted by s. 13 of Act 74 of 2002 and substituted by s. 12 (1) of Act 35 of 2007.]
9B . . .
[S. 9B inserted by s. 9 of Act 101 of 1990, amended by s. 11 of Act 129 of 1991, by s. 9 (1) (a), (b) and (c) of Act 141 of 1992, by s. 6 of Act 113 of 1993, by s. 7 (1) (c) of Act 36 of 1996, by s. 26 of Act 30 of 1998, by s. 16 (1) (a) and (b) of Act 53 of 1999, by s. 21 (1) of Act 45 of 2003, by s. 12 (1) of Act 32 of 2004, by s. 22 of Act 9 of 2006, by s. 13 of Act 35 of 2007 and by s. 8 of Act 8 of 2007 and repealed by s. 17 (1) of Act 31 of 2013 – repeal deemed to have come into operation on 1 January 2013 and applies in respect of years of assessment commencing on or after that date.]
9C Circumstances in which certain amounts received or accrued from disposal of shares are deemed to be of a capital nature
(1) For the purposes of this section—
‘connected person’ means a connected person as de ned in section 1, provided that the expression ‘and no holder of shares holds the majority voting rights in the company’ in paragraph (d) (v) of that de nition shall be disregarded;
[De nition of ‘connected person’ substituted by s. 18 (a) of Act 31 of 2013 – date of commencement: 12 December 2013.]
‘disposal’ means a disposal as de ned in paragraph 1 of the Eighth Schedule or any event treated as a disposal in terms of section 9H;
[De nition of ‘disposal’ inserted by s. 12 (1) (a) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 January 2016; the insertion applies iro years of assessment commencing on or after that date.]
‘equity share’, includes a participatory interest in a portfolio of a collective investment scheme in securities and a portfolio of a hedge fund collective investment scheme excluding a share which at any time during that period was—
(a) a share in a share block company as de ned in section 1 of the Share Blocks Control Act;
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(b) a share in a company which was not a resident, other than a company contemplated in paragraph (a) of the de nition of ‘listed company’; or
(c) a hybrid equity instrument as de ned in section 8E. [De nition of ‘equity share’ inserted by s. 24 (1) (b) of Act 24 of 2011 and substituted by s. 18 (b) of Act 31 of 2013
(date of commencement: 12 December 2013) and by s. 12 (1) (b) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 January 2016; the substitution applies iro years of assessment commencing on or after that date.]
‘qualifying share’ . . .
[De nition of ‘qualifying share’ substituted by s. 7 (1) (a) of Act 3 of 2008, amended by s. 15 (1) of Act 7 of 2010, by s.
24 (1) (c) of Act 24 of 2011 and by s. 11 of Act 43 of 2014 and deleted by s. 12 (1) (c) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 January 2016; the deletion applies iro years of assessment commencing on or after that date.]
Prelex
Wording of de nition of ‘equity share’ in force until 1 January 2016
‘equity share’ includes a participatory interest in a portfolio of a collective investment scheme in securities and a portfolio of a hedge fund collective investment scheme;
Prelex
Wording of de nition of ‘qualifying share’ in force until its deletion wef 1 January 2016
‘qualifying share’, in relation to any taxpayer, means an equity share, which has been disposed of by the taxpayer or which is treated as having been disposed of by the taxpayer in terms of paragraph 12 of the Eighth Schedule, if the taxpayer immediately prior to such disposal had been the owner of that share for a continuous period of at least three years excluding a share which at any time during that period was—
(a) a share in a share block company as de ned in
section 1 of the Share Blocks Control Act;
(b) a share in a company which was not a resident, other than a company contemplated in paragraph (a) of
the de nition of ‘listed company’; or
(c) a hybrid equity instrument as de ned in section 8E.
(2) Any amount received or accrued (other than a dividend or foreign dividend) or any expenditure incurred in respect of an equity share must be deemed to be of a capital nature if that equity share had, at the time of the receipt or accrual of that amount or incurral of that expenditure, been held for a period of at least three years.
[Sub-s. (2) substituted by s. 7 (1) (b) of Act 3 of 2008, by s. 24 (1) (d) of Act 24 of 2011 (date of commencement: 1 April 2012) and by s. 12 (1) (d) of Taxation Laws Amendment Act, 2015 – date of commencement:
1 January 2016; the substitution applies iro years of assessment commencing on or after that date.]
(2A) Subsection (2) does not apply in respect of so much of the amount received or accrued in respect of the disposal of an equity share contemplated in that subsection as does not exceed the expenditure allowed in respect of that share in terms of section 12J (2).
[Sub-s. (2A) inserted by s. 12 (1) of Act 60 of 2008 and substituted by s. 24 (1) (e) of Act 24 of 2011 (date of
Prelex
Wording of sub-s. (2) in force until 1 January 2016
(2) Any amount other than a dividend or foreign dividend received by or accrued to a taxpayer in respect of a qualifying share shall be deemed to be of a capital nature.
SAIT CompendIum oF TAx LegISLATIon VoLume 1