PRESIDENT'S
OFFICE
-
- No. 1101.
-
3 July 1996
-
- NO. 36 OF 1996: INCOME TAX
ACT, 1996.
-
- It is hereby notified that
the President has assented to the following Act which is hereby
published for general information:-
-
- GENERAL EXPLANATORY NOTE:
-
** **
Words between asterisks indicate omissions from existing enactments. -
- << >> Words
between pointed brackets indicate insertions in existing
enactments.
-
ACT
-
- To fix the rates of normal
tax payable by persons other than companies in respect of taxable
incomes for the years of assessment
ending on 28 February
-
1997 and 30 June 1997, and by
companies in respect of taxable incomes for years of assessment
ending during the period of 12 months
ending on 31 March
-
1997; to amend the Income
Tax Act, 1962; to amend the Income Tax Act, 1994; to
-
withdraw a Government Notice;
to repeal certain laws; and to provide for incidental matters.
-
(English
text signed by the President.) (Assented to 27 June 1996.)
-
- BE IT ENACTED by the
Parliament of the Republic of South Africa, as follows:-
-
- Rates of normal tax
-
- 1. The rates of normal tax
to be levied in terms of section 5(2) of the Income Tax Act, 1962
(Act No. 58 of 1962) (hereinafter
referred to as the principal Act),
in respect of
-
- (a) the taxable income of
any person other than a company for the year of assessment ending
on 28 February 1997 or 30 June 1997;
and
-
- (b) the taxable income of
any company for any year of assessment ending during the period of
12 months ending on 31 March 1997,
shall be as set forth in the
Schedule to this Act.
-
- Amendment of section 1 of
Act 58 of 1962, as amended by section 3 of Act 90 of
-
1962, section 1 of Act 6 of
1963, section 4 of Act 72 of 1963, section 4 of Act
-
90 of 1964, section 5 of
Act 88 of 1965, section 5 of Act 55 of 1966, section 5
-
of Act 95 of 1967, section 5
of Act 76 of 1968, section 6 of Act 89 of 1969, section 6 of Act 52
of 1970, section 4 of Act 88
of 1971, section 4 of Act 90
-
of 1972, section 4 of Act 65
of 1973, section 4 of Act 85 of 1974, section 4 of Act 69 of 1975,
section 4 of Act 103 of 1976,
section 4 of Act 113 of 1977, section
3 of Act 101 of 1978, section 3 of Act 104 of 1979, section 2 of Act
-
104 of 1980, section 2 of
Act 96 of 1981, section 3 of Act 91 of 1982, section
-
2 of Act 94 of 1983, section 1
of Act 30 of 1984, section 2 of Act 121 of 1984, section 2 of Act 96
of 1985, section 2 of Act
65 of 1986, section 1 of Act 108 of 1986,
section 2 of Act 85 of 1987, section 2 of Act 90 of 1988, section 1
of Act 99 of 1988,
Government Notice No. R.780 of 14 April 1989,
section 2 of Act
-
70 of 1989, section 2 of
Act 101 of 1990, section 2 of Act 129 of 1991, section
-
2 of Act 141 of 1992, section
2 of Act 113 of 1993, section 2 of Act 21 of 1994 and section 2 of
Act 21 of 1995
-
- 2. Section 1 of the
principal Act is hereby amended
-
(a) by the insertion after
the definition of "capitalisation shares" of the
following definition:
-
- " <<'Chief
Executive Officer' means the Director-General: South African
-
Revenue Service>>;";
-
- (b) by the substitution
for the definition of "hotel keeper" of the following
definition:
-
- " 'hotel keeper'
means any person carrying on the business of hotel keeper or
boarding or lodging house keeper where meals
and sleeping
accommodation are supplied to others for money or its equivalent;
**if the gross receipts from that business during
the year of
assessment were in excess of two thousand rand, and includes any
person carrying on such business the gross receipts
from which
during the year of assessment
-
were not in excess of two
thousand rand by reason of the fact that the building in which the
business is carried on has been
in the course of erection or
extensively renovated or because of circumstances beyond such
person's control, if the Commissioner
is satisfied that during the
immediately succeeding year of assessment or such further period as
he
-
may for good reason allow,
the gross receipts from that business will be or could be expected
to be in excess of two thousand
rand per annum**":
-
- (c) by the substitution
for the definition of "neighboring country" of the
following definition:
-
- " 'neighboring
country' means **the territory** Botswana, Lesotho,
-
<<Namibia and>>
Swaziland, **and any country the territory of which
-
formerly formed part of the
Republic**"; and
-
- (d) by the substitution
for the definition of "South African company" of' the
following definition:
-
- 'South African company'
means any association, corporation, company or body corporate
referred to in paragraph (a) or (f) of
the definition of
'company' in this section or
any association referred to in paragraph (d) of that definition or
any unit portfolio referred
to in paragraph (e) of that definition;
-
- **but does not include
any company whose registered office is in a country which formerly
formed part of the Republic nor any
company formed, established or
incorporated under the law of such country after it obtained its
independence from the Republic**".
-
Amendment of
section 4 of Act 58 of 1962, as amended by section 6 of Act 55
of 1966, section 4 of Act 104
of 1979, section 32 of Act 104 of 1980, section 3 of Act 96 of 1981,
section 3 of Act 85 of 1987,
section 3 of Act 70 of 1989 and section
4 of Act 21 of 1994
-
- 3. Section 4 of the
principal Act is hereby amended
-
- (a) by the addition to
the proviso to subsection (1) of the following paragraph:
-
- "<<(c) the
Chief Executive Officer shall in the performance of his duties as
Chief Executive Officer, have access
to information and documents
in the possession or custody of the Commissioner.>>";
-
(b) by the insertion after
subsection (1A) of the following subsection: "<<(1B) The
Chief Executive Officer shall
preserve and aid in preserving
-
secrecy with regard to
all matters that may come to his knowledge in the
-
performance of his duties as
Chief Executive Officer, and shall not
-
communicate any such matter
to any person whatsoever other than the taxpayer concerned or his
lawful representative nor suffer
or permit any such person to have
access to any records in the possession or custody
-
of the Commissioner,
except in the performance of his duties as Chief
-
Executive Officer or by order
of a competent court>>.";
-
- (c) by the substitution
for paragraph (a) of subsection (2) of the following paragraph:
-
- "(a) Every person so
employed <<and the Chief Executive Officer>> shall,
before acting under this Act, take
and subscribe before a
magistrate or justice of the peace or an officer of the
**Directorate: Inland
-
Revenue, Department of
Finance** <<South African Revenue Service>> who is a
commissioner of oaths, such oath <<or
solemn declaration, as
the case may be>>, of fidelity or secrecy as may be
prescribed.";
-
(d) by the
substitution for subsection (3) of the following subsection: -
- "(3) Any person who
contravenes the provisions of subsection (1), (1A),
-
<<(1B)>> or (2A)
shall be guilty of an offence and liable on conviction to a fine
not exceeding R5000 or to imprisonment
for a period not exceeding
two years or to both such fine and such imprisonment."; and
-
(e) by the substitution for
subsection (4) of the following subsection: "(4) Any person
who acts in the execution of his
office before he has
-
taken the prescribed
oath <<or solemn declaration>> shall be guilty of
-
an offence and liable on
conviction to a fine not exceeding R50.".
-
- Amendment of section 6 of
Act 58 of 1962, as inserted by section 5 of Act 104 of 1980 and
amended by section 5 of Act 96 of 1981,
section 5 of Act 91 of
-
1982, section 4 of Act 94 of
1983, section 4 of Act 121 of 1984, section 3 of Act 96 of 1985,
section 4 of Act 85 of 1987, section
4 of Act 90 of 1988, section 4
of Act 70 of 1989, section 3 of Act 101 of 1990, section 4 of Act
-
129 of 1991, section 4 of Act
141 of 1992 and section 5 of Act 21 of 1995
-
- 4. Section 6 of the
principal Act is hereby amended by the substitution for the
expression "R2625" in paragraph (a)
of subsection (2) of
the expression "R2660".
-
- Amendment of section 7A of
Act 58 of 1962, as inserted by section 6 of Act 69 of 1975 and
amended by section 7 of Act 103 of 1976,
section 6 of Act 96 of
-
1981, section 4 of Act 65 of
1986, section 8 of Act 129 of 1991, section 3 of
-
Act 113 of 1993 and
section 7 of Act 21 of 1995
-
- 5. Section 7A of the
principal Act is hereby amended by the deletion of subsection (5).
-
- Amendment of section 8 of
Act 58 of 1962, as amended by section 6 of Act 90 of
-
1962, section 6 of Act 90 of
1964, section 9 of Act 88 of 1965, section 10 of Act 55 of 1966,
section 10 of Act 89 of 1969, section
6 of Act 90 of 1972, section 8
of Act 85 of 1974, section 7 of Act 69 of 1975, section 7 of Act 113
of 1977, section 8 of Act
94 of 1983, section 5 of Act 121 of 1984,
section 4 of Act 96 of 1985, section 5 of Act 65 of 1986, section 6
of Act 85 of 1987,
section 6 of Act 90 of 1988, section 5 of Act 101
of 1990, section 9 of Act
-
129 of 1991, section 6 of Act
141 of 1992, section 4 of Act 113 of 1993, section 6 of Act 21 of
1994 and section 8 of Act 21 of
1995
-
- 6.(1) Section 8 of the
principal Act is hereby amended
-
- (a) by the insertion
after paragraph (dA) of subsection (4) of the following paragraph:
-
- "<<(dB) For
the purposes of paragraph (a), where any company which is or
-
was a parent company
contemplated in paragraph (b) of the definition of
-
'South African ship' in
section 14(2) has
-
(i)
exercised the election in terms of section 14(1D) in relation to
-
any other company which is or
was a subsidiary company contemplated in the last-mentioned
paragraph; and
-
- (ii) sold or disposed of
in any other manner any shares held in such other company during
any year of assessment, such company
shall be deemed to have
recovered or recouped during such year of assessment an amount
equal to the lesser of
-
- (aa) the total of all
amounts allowed to be deducted or set off under the provisions of
sections 11(o), 12C and 14, whether
in such or any previous year
of assessment, in the determination of such company's taxable
income in respect of any ship
owned by such other company, at the
date of sale or disposal of such shares; and
-
- (bb) the market value of
such ship as at the date of sale or disposal of such shares>>.";
and
-
- (b) by the addition to
subsection (4) of the following paragraph:
-
- <<"(l) For
purposes of paragraph (a), where-
-
(i) any
person was entitled to a deduction in respect of any interest
-
or related finance charges
(including a discount or premium), which was incurred or deemed to
have been incurred by such person
in relation to any financial
arrangement during any year of assessment and such interest or
related finance 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 financial arrangement during any year of
assessment to any other person; and
-
- (iii) any obligation or
part thereof in respect of such interest or related finance 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>>.".
-
(2)(a)
Subsection(1)(a) shall be deemed to have come into operation on 1
June -
1996 and shall apply to any
shares sold or disposed of on or after that date.
-
- (b) Subsection (1)(b)
shall apply in respect of all financial arrangements transferred on
or after the date of promulgation of
this Act.
-
- Amendment of section 9B of
Act 58 of 1962, as inserted by section 9 of Act 101 of 1990 and
amended by section 11 of Act 129 of
1991, section 9 of Act 141 of
-
1992 and section 6 of Act 113
of 1993
-
- 7. (1) Section 9B of the
principal Act is hereby amended
-
- (a) by the deletion of
the word "and" at the end of subparagraph (ii) of
paragraph (b) of subsection (1);
-
- (b) by the addition of
the word "and" at the end of paragraph (d) of subsection
(1); and
-
- (c) by the addition to
subsection (1) of the following paragraph:
-
"<<(e) where
-
- (i) any share has been
lent by a lender to a borrower as contemplated in the definition of
'lending arrangement' in section
23(1) of the Stamp Duties Act,
1968 (Act No. 77 of 1968), such share shall for
-
the purposes of the lender be
deemed not to have been disposed of by the lender; and
-
- (ii) any other share of
the same kind and of the same or equivalent quantity and quality
has been returned by the borrower to
the lender, such share and
such other share shall be deemed to be one and the
-
same share in the hands of
the lender>>.".
-
- (2) Subsection (1) shall
come into operation on 1 August 1996 and shall apply to any share
lent in terms of a lending arrangement
entered into on or after that
date.
-
- Amendment of section 10 of
Act 58 of 1962, as amended by section 8 of Act 90 of 1962, section 7
of Act 72 of 1963, section 8 of
Act 90 of 1964, section 10 of Act 88
of 1965, section 11 of Act 55 of 1966, section 10 of Act 95 of 1967,
section 8 of Act 76
of 1968, section 13 of Act 89 of 1969, section 9
of Act 52 of 1970, section 9 of Act 88 of 1971, section 7 of Act 90
of 1972,
section 7
-
of Act 65 of 1973,
section 10 of Act 85 of 1974, section 8 of Act 69 of 1975,
-
section 9 of Act 103 of 1976,
section 8 of Act 113 of 1977, section 4 of Act
-
101 of 1978, section 7 of Act
104 of 1979, section 7 of Act 104 of 1980, section 8 of Act 96 of
1981, section 6 of Act 91 of 1982,
section 9 of Act 94 of 1983,
section 10 of Act 121 of 1984, section 6 of Act 96 of 1985, section
7 of Act 65 of 1986, section
3 of Act 108 of 1986, section 9 of Act
85 of 1987, section 7 of Act 90 of 1988, section 36 of Act 9 of
1989, section 7 of Act
70 of 1989, section 10 of Act 101 of 1990,
section 12 of Act 129 of 1991, section
-
10 of Act 141 of 1992, section
7 of Act 113 of 1993, section 4 of Act 140 of
-
1993, section 9 of Act 21 of
1994 and section 10 of Act 21 of 1995
-
8. (1)
Section 10 of the principal Act is hereby amended -
(a) by the
substitution for item (ff) of subparagraph (i) of paragraph
-
(cB) of subsection (1) of the
following item:
-
- (ff) to promote the
common interests of persons <<(being members of such company,
society or association)>> carrying
on any particular kind of
business, profession or occupation by means other than-
-
- <<(A)>> the
carrying on by Such company, society or association of any trading
or other profit-making activities
**or**
-
- <<(B)>> the
participation by such company, society or association in any
business, profession or occupation carried
on by any of its
members: or
-
<<(C)>>
the provision to any of its members of financial assistance or of
any premises or Continuous services or
facilities required by its
members for the purpose of carrying on any business, profession or-
occupation:
-
- (b) by the Substitution
for item (aa) of subparagraph (i) of paragraph (eI)
-
of Subsection (1) Of the
following item:
-
- "(aa) to acquire,
hold, develop or improve land or any right to land ill the Republic
**or in any country the territory
of which formerly formed part of
the Republic** with a view to enabling any community in the
Republic, **or such country**
of which at least 75 per cent of the
adult members are persons who earn less than R1500 per month, to
acquire such land, or
right thereto, so as to occupy that land
wholly or mainly for
-
residential purposes;
-
- (c) by the substitution
for subparagraph (i) of paragraph (cK) of subsection
-
(1) of the following
subparagraph:
-
- "(i) the sole object
of such company is to supply electricity, whether as principal or as
agent, to the electricity consumers
of any
-
**self-governing territory as
defined in section 38(1) of the
-
Self-governing
Territories Constitution Act, 1971 (Act No. 21 of
-
1971)** <<province
referred to in section 124 of the Constitution>>, or of any
local authority as defined in section
1 of the Electricity Act.
-
1987 (Act No. 41 of 1987);":
-
- (d) by the Substitution
for items (aa) and (dd) of subparagraph (vi) of paragraph (cK) of
subsection (1) of the following items,
respectively:
-
- "(aa) the
<<provincial>> government Of Such **self-governing
territory**
-
<<province>>;";
and
-
- "(dd) a trust acting
as nominee for such **self-governing territory**
-
<<province>>,
local authority, regional services council or joint services
hoard;";
-
- (e) by the deletion of
paragraph (cL) of subsection (1);
-
- (f) by the substitution
for the words preceding subparagraph (i) of paragraph (fA) of
Subsection (1) and the said subparagraph
(i) of the following words
and subparagraph:
-
- "the receipts and
accruals of any fund the sole object of which is to provide funds
for any <<body, such body being
a company, society,
association of persons or trust contemplated in paragraph (cF) or
any>> religious, charitable or educational
institution
contemplated in paragraph (f), if such fund
-
- (i) has been approved by
the Commissioner subject to such conditions as he may deem
necessary to ensure that no benefits are
allocated by the fund for
purposes Other than the
-
provision of funds for
<<such>> a **religious, charitable or
-
educational institution
contemplated in paragraph (f)**
-
<<body>>;";
-
- (g) by the substitution
for items (aa), (cc) and (dd) of subparagraph (ii) of paragraph (fA)
of subsection (1) of the following
items, respectively:
-
- "(aa) not permitted
to distribute any of its funds to any person other than **an
institution contemplated in paragraph (f)**
<<such a body>>;";
required to distribute, unless the Commissioner otherwise directs,
at least 75 per cent of
its net revenue (being the gross income of
such fund less the costs of its administration) to any
-
**religious, charitable or
educational institution contemplated in paragraph (f)** <<such
body>> within a period of'
12 months from the end of the
financial year during which such net revenue was derived;`, and
-
- "(dd) required on
dissolution to transfer its assets to any
-
**religious, charitable or
educational institution which is exempt from tax under paragraph
(f)** <<such body>>;";
-
- (h) by the substitution
for item (hh) of subparagraph (ii) of paragraph
-
(fA) of subsection (1) of the
following item:
-
- "(hh) required to
apply its net revenue, unless the Minister of Finance
-
otherwise directs, for the
furtherance of its sole object in the Republic: **or in any country
the territory of which formerly
formed part of the Republic**"
;
-
- (i) by the substitution
for paragraph (b) of the proviso to paragraph
-
(fA) of subsection (1) of the
following paragraph:
-
"(b)
where the Commissioner has withdrawn his approval of such fund, it
shall, within two months from the date of such
withdrawal,
transfer, or take reasonable steps to transfer, its remaining
assets to any -
**religious, charitable or
educational institution** <<such body>> which is exempt
from tax under paragraph <<(cF)
or>> (f);",
-
- (j) by the substitution
for paragraph (gB) of subsection (1) of the following paragraph:
-
- "(gB) any
**disability pension** <<compensation>> paid **under
section
39(1)(c) or (d)** <<in
terms>> of the Workmen's Compensation Act, 1941 (Act No. 30
of 1941), <<or the Compensation
for Occupational Injuries and
Diseases Act, 1993 (Act No. 130 of 1993)>>;";
-
- (k) by the deletion of
the word "and" at the end of paragraph (iii) of the
proviso to paragraph (hA) of subsection
(1);
-
- (l) by the addition of
the word "and" at the end of paragraph (iv) of the
proviso to paragraph (hA) of subsection
(1);
-
- (m) by the addition to
the proviso to paragraph (hA) of subsection (1) of the following
paragraph:
-
- "<<(v) the
exemption under this paragraph shall not apply to any interest
received by or accrued to a company which
is managed and controlled
outside the Republic, if such interest is effectively connected
with the business carried on by that
company in the Republic>>;";
-
- (n) by the deletion of
the words preceding subparagraph (i) of paragraph (i) of subsection
(1) and subparagraphs (i), (ii),
(vi), (xii), (xiiA), (xiii) and
(xiv) of the said paragraph (i);
-
- (o) by the deletion of
subparagraph (xiv) of paragraph (t) of subsection
-
(1); and
-
- (p) by the deletion of
subsection (4).
-
- (2)(a) Subsection (1)(a)
shall come into operation as from the commencement of years of
assessment commencing on or after 1 August
1996.
-
(b)
Subsection (1)(j) shall come into operation on the date on which
section -
12 of the Compensation for
Occupational Injuries and Diseases Amendment Act,
-
1996. comes into operation.
-
(c)
Subsection (1)(m) shall be deemed to have come into operation on 1
April -
1996 and shall apply to any
interest received or accrued on or after that date.
-
- Amendment of section 11 of
Act 58 of 1962, as amended by section 9 of Act 90 of 1962, section 8
of Act 72 of 1963, section 9 of
Act 90 of 1964, section 11 of Act 88
of 1965, section 12 of Act 55 of 1966, section 11 of Act 95 of 1967,
section 9 of Act 76
of 1968, section 14 of Act 89 of 1969, section
10 of Act
-
52 of 1970, section 10 of
Act 88 of 1971, section 8 of Act 90 of 1972, section
-
9 of Act 65 of 1973, section
12 of Act 85 of 1974, section 9 of Act 69 of
-
1975, section 9 of Act 113 of
1977, section 5 of Act 101 of 1978, section 8 of Act 104 of 1979,
section 8 of Act 104 of 1980,
section 9 of Act 96 of 1981, section 7
of Act 91 of 1982, section 10 of Act 94 of 1983, section 11 of Act
-
121 of 1984, section 46 of Act
97 of 1986, section 10 of Act 85 of 1987, section 8 of Act 90 of
1988, section 8 of Act 70 of 1989,
section 11 of Act
-
101 of 1990, section 13 of Act
129 of 1991, section 11 of Act 141 of 1992, section 9 of Act 113 of
1993, section 5 of Act 140
of 1993, section 10 of Act
-
21 of 1994 and section 12 of
Act 21 of 1995
-
- 9. (1) Section 11 of the
principal Act is hereby amended by the substitution for the
expression "two hundred rand" in
paragraph (aa) of the
proviso to paragraph (gA) of the expression "R3000".
-
- (2) Subsection (1) shall
come into operation on 1 August 1996 and shall apply to any
expenditure incurred on or after that date.
-
- Amendment of section 16A
of Act 58 of 1962, as inserted by section 10 of Act
-
70 of 1989
-
- 10. Section 16A of the
principal Act is hereby amended by the substitution for the words
preceding subparagraph (i) of' paragraph
(b) of subsection (1) of
the following words:
-
- "has incurred such
expenditure during the year of assessment in respect of' the
attendance by him of any course or congress
held
-
in a country other than the
Republic [or any country the territory of which formerly formed
part of the Republic] and that
such
-
course or congress-".
-
- Amendment of section 18A
of Act 58 of 1962, as inserted by section 15 of Act
-
52 of 1970 and substituted by
section 16 of Act 96 of 1981 and amended by section 14 of Act 91 of
1982, section 16 of Act 94 of
1983, section 16 of Act
-
121 of 1984, section 15 of Act
90 of 1988, section 17 of Act 101 of 1990 and section 20 of Act 129
of 1991
-
- 11. (1) Section 18A of the
principal Act is hereby amended-
-
- (a) by the substitution in
subsection (1) for paragraphs (a) and (b) of the definition of
"college" of the following
paragraphs, respectively:
-
- "(a) a technikon
established or deemed to have been established or
-
declared to be such
under the **Advanced Technical Education Act, 1967
-
(Act No. 40 of 1967)**
<<Technikon Act, 1993 (Act No. 125 of 1993)>>, or any
other Act of Parliament; **or established
as such under any law
-
of and situated in, an
independent State whose territory formerly formed part of the
Republic** or
-
(b) any
other educational institution established by or under any other
-
law of the Republic, **or
established under any law of, and situated in, any such independent
State** if the Commissioner, in
consultation with the officer in
the public service of the Republic, **or, as the case may be, of
the independent State in
question** upon or to whom powers,
-
duties or functions are or
may be conferred, imposed or assigned in terms of the law in
question, is satisfied that such institution
is in all material
respects similar to any technikon referred to in paragraph (a);
-
- (b) by the substitution in
subsection (1) for subparagraph (i) of paragraph of the definition
of 'educational fund" of the
following subparagraph:
-
- "(i) for educational
or training purposes for the benefit of the pupils. students or
trainees of any school or institution
referred to in paragraph (b)
which is situated in the Republic, **or any similar school or
institution in any independent State
whose territory formerly
formed part of the Republic** where such fund is administered and
controlled by the trustee of any
educational trust approved by the
Minister of Finance which has been created under a
-
written deed of trust with
the object of serving such purposes; or
-
- (c) by the substitution in
subsection (1) for the words preceding subparagraph (i) of paragraph
(d) of the definition of "educational
fund" of the
following words:
-
- "any trust fund
established in the Republic for the sole purpose of receiving
donations from companies to be used exclusively
for educational or
training purposes in respect of primary and secondary education in
the Republic **or any independent state
whose territory formerly
formed part of the Republic** if-",
-
- (d) by the substitution in
subsection (1) for the definition of
-
"university" of
the following definition:
-
- "university' means a
university established by an Act of Parliament
-
**or established by any law
of and situated in, any independent State whose territory formerly
formed part of the Republic**
and a university college established
under the **Extension of University Education Act, 1959 (Act No. 45
of 1959)** <<Tertiary
Education Act,
-
1988 (Act No. 66 of
1988)>>.";
-
- (e) by the addition of the
word "and" at the end of paragraph (a) of subsection (2);
-
- (f) by the deletion of the
word "and" at the end of paragraph (b) of subsection (2);
-
- (g) by the deletion of
paragraph (c) of subsection (2);
-
- (h) by the substitution
for the words preceding paragraph (a) of subsection (3) of the
following words:
-
- "Any claim for a
deduction in respect of any donation under subsection (2) shall not
be allowed unless supported by a receipt
issued **(as respects a
donation contemplated in paragraph (a) or (b) of that subsection)**
by the university, college or person
in control of the educational
fund concerned, **or (as respects a donation contemplated in
paragraph (c) of that subsection)
by the said Bible Society of
South Africa** on which the following details are given, namely-";
-
- (i) by the substitution
for paragraph (b) of subsection (3) of the following paragraph:
-
- "(b) the name of the
university, college or educational fund which received **a**
<<the>> donation, **contemplated
in paragraph (a) of
subsection (2) or, as respects a donation contemplated in paragraph
(c) of that subsection, the name of
the said Bible Society**
together with an address to which enquiries may be directed in
connection therewith;`. and
-
- (j) by the substitution
for paragraph (e) of subsection (3) of the following paragraph:
-
- "(e) a certification
to the effect that the receipt is issued for the purposes of
section 18A of the Income Tax Act, 1962,
and that the donation has
been or will be used exclusively for the purposes of the
university, college or educational fund
concerned **or the said
Bible Society**.".
-
- (2) Subsection (1)(e) to
(j), inclusive, shall come into operation on 1
-
October 1996 and shall apply
in respect of any donation made on or after that date.
-
Amendment of section 22 of Act
58 of 1962, as amended by section 8 of Act 6 of
-
1963, section 14 of Act 90 of
1964, section 21 of Act 89 of 1969, section 23 of Act 85 of 1974,
section 20 of Act 69 of 1975,
section 15 of Act 103 of
-
1976, section 20 of Act 94 of
1983, section 19 of Act 121 of 1984, section 14 of Act 65 of 1986,
section 5 of Act 108 of 1986,
section 21 of Act 101 of
-
1990, section 22 of Act 129 of
1991, section 17 of Act 113 of 1993, section 1 of Act 168 of 1993
and section 19 of Act 21 of 1995
-
- 12. (1) Section 22 of the
principal Act is hereby amended-
-
- (a) by the insertion
after subsection (4) of the following subsection: "<<(4A)
For the purposes of subsection (4),
where-
-
(a) any marketable security
has been lent by a lender to a borrower in terms of a 'lending
arrangement' as defined in section
23(1) of the Stamp Duties Act,
1968 (Act No. 77 of 1968), such marketable security shall be
deemed not to have been acquired
by such borrower, or
-
- (b) another marketable
security of the same kind and of the same or equivalent quantity
and quality has been returned by such
borrower to such lender,
such other marketable security shall be deemed not to have been
acquired by such lender.>>";
-
- (b) by the substitution
for subsection (8) of the following subsection: "(8) If during
any year of assessment
-
<<(a)>> any
taxpayer has applied trading stock to his private or domestic use
or consumption; or [for the purpose
of making any donation of
trading stock (other than livestock or produce in respect of which
-
the provisions of
paragraph 11 of the First Schedule are applicable) or]
-
- <<(b) any
-
- (i) taxpayer has applied
trading stock for the purpose of making any donation thereof:
-
- (ii) taxpayer has
disposed of trading stock, other than in the ordinary course of his
trade, for a consideration less than the
market value thereof;
-
- (iii) trading stock of
any company has on or after 21 June 1993 been distributed in specie
(whether such distribution occurred
by means of a dividend,
including a liquidation dividend, a total or partial reduction of
capital (including any share premium)
or a redemption of redeemable
preference shares) to any shareholder of that company; or
-
- (iv) taxpayer has applied
any stock>> for any other purpose other
-
than the disposal thereof in
the ordinary course of his trade <<and under circumstances
other than those contemplated
in paragraph (a) or subparagraph
(i),(ii) or (iii) of this paragraph>>,
-
and the cost price of
such trading stock has been taken onto account
-
in the determination of the
taxable income of the taxpayer for any year of assessment, the
taxpayer shall be deemed to have
recovered or recouped
-
- <<(A) where such
trading stock has been applied in a manner
-
contemplated in paragraph
(a)>>, an amount equal to the cost price to him of such
trading stock (less any sum which has
been deducted therefrom under
the provisions of subsection (1)) <<or where the cost price
cannot be readily determined,
the market value of such trading
-
stock; or
-
- (B) where such trading
stock has been applied. disposed of or distributed in a manner
contemplated in paragraph (b), an amount
equal to the market value
of such trading stock>>, and such amount shall be included in
the income of the taxpayer for
the year of
-
assessment during which such
trading stock was so applied, <<disposed of or
distributed>>: Provided that where
-
- <<(a)>> an
asset consisting of trading stock so applied is used or consumed by
the taxpayer in carrying on his trade,
the amount included in his
income under this subsection shall for the purposes of this Act be
deemed to be expenditure incurred
in respect of the acquisition by
him of such asset;
-
- **Provided further that
where any trading stock (other than livestock or produce) of any
company has on or after 21 June 1993
been distributed in specie
(whether such distribution occurred by means of a dividend,
including a liquidation dividend, a total
or partial reduction of
capital (including any share premium) or a redemption of redeemable
preference shares) to any shareholder
of that company, there shall
be included in the income of such company during the year of
assessment in which such trading stock
was distributed an amount
equal to the market value o such trading stock**
-
- <<(b) the
provisions of paragraph (b) (ii) apply and any consideration
contemplated in that paragraph has been received
by or accrued to
the taxpayer, the amount included in his income in terms of this
subsection shall be reduced by such consideration;
or
-
- (c) such trading stock
consists of livestock or produce in respect of which the provisions
of paragraph 11 of the First Schedule
are applicable, the
provisions of this subsection shall not apply.>>"; and
-
- (c) by the addition of the
following subsection: "<<(9) Where-
-
(a) (i) the trading stock
of any person during any year of assessment
-
includes any marketable
security;
-
- (ii) such person has,
during such year of assessment, lent such marketable security to a
borrower in terms of a 'lending arrangement'
as defined in section
23(1) of the Stamp Duties Act, 1968 (Act No. 77 of 1968); and
-
- (iii) a marketable
security of the same kind and of the same or equivalent quantity
and quality has not been returned by the
borrower to such person
at the end of such year of assessment, such marketable security
shall, for the purposes of this section,
be deemed to be trading
stock held and not disposed of
-
by such person at the end of
such year of assessment; or (b) (i) the trading stock of any other
person during any year of
assessment includes any marketable
security; (ii) such other person has, during such year of
assessment, borrowed such marketable
security from a tender in
terms of a 'lending arrangement' as defined in section 23(1) of
the Stamp Duties
-
Act, 1968 (Act No. 77 of
1968); and (iii) a marketable security of the same kind and of the
same or equivalent quantity and
quality has not been returned by
such other person to such
-
lender at the end of such
year of assessment, such marketable security shall, for the
purposes of this section, be deemed
not to be trading stock held
and not disposed of, by such other
-
person at the end of such
year of assessment>>.".
-
- (2)(a) Subsection (1)(a)
and (c) shall come into operation on 1 August 1996 and shall apply
to any marketable security lent on
or after that date.
-
- (b) Subsection (1)(b)
shall come into operation on the date of promulgation of this Act
and shall apply to any trading stock applied,
disposed of or
distributed on or after that date.
-
- Amendment of section 241
of Act 58 of 1962, as inserted by section 21 of Act
-
113 of 1993 and amended by
section 11 of Act 140 of 1993 and section 18 of
-
Act 21 of 1994
-
- 13. (1) Section 241 of the
principal Act is hereby amended(a) by the substitution in subsection
(1) for the definition of "affected
forward exchange contract"
of the following definition:
-
- "affected forward
exchange contract' means any forward exchange contract which has
been entered into by any person during
any year of assessment, to
serve as a hedge in respect of
-
- **(a)** a loan, advance or
debt, where-
-
- **(i)** <<(a)>>
such loan or advance has not yet been obtained <<or granted,
as the case may be, by such person>>,
or such debt has not
yet been incurred by, <<or the amount payable in respect of
such debt has not yet accrued to such
person, as the case may be>>,
during such year of assessment; and
-
- **(ii)**<<(b)>>
such loan, advance or debt-
-
- <<(i)>> is to
be utilised **as contemplated in subsection (7)(a) in terms of an
agreement entered into** by such
person <<to acquire any
asset or to finance any expense; or
-
- (ii) will arise from the
sale of any asset or the supply of any services, in the ordinary
course of his trade in terms of an
-
agreement entered into by
such person>> prior to the end of such year of assessment;
**for the acquisition, installation,
construction, devise,
development, creation, production or restoration of any asset
(whether corporeal or incorporeal) as contemplated
in that
-
subsection; or
-
- (b) interest to be
incurred in respect of a loan or advance obtained or to be obtained
or a debt incurred or to be incurred
as contemplated in subsection
(7)(a)**"; and
-
(b) by the addition to
subsection (7) of the following proviso: "<<Provided
that where the Commissioner is satisfied
that during any
-
year o assessment subsequent
to the year of assessment during which such exchange difference
arose or such premium or other
consideration was
-
paid or became payable
-
- (a) the loan, advance or
debt to be obtained or incurred, as the case may be, as
contemplated in paragraph (b) or (c) of this
subsection will no
longer be so obtained or incurred;
-
- (b) such loan, advance or
debt has not been utilised as contemplated in paragraph (a); or
-
- (c) any such asset,
property or knowledge will no longer be brought into use for the
purpose of such person's trade, such exchange
difference or premium
or other consideration shall no longer be
-
carried forward, but shall be
taken into account in the determination of such person's taxable
income in such subsequent year
of assessment>>."
-
- (2) Subsection (1) shall
come into operation in respect of years of assessment end in on or
after the date of promulgation of
this Act.
-
Amendment of
section 24J of Act 58 of 1962, as inserted by section 21 of Act
-
21 of 1995
-
- 14. (1) Section 24J of the
principal Act is hereby amended(a) by the substitution in subsection
(1) for the definition of "adjusted
gain on transfer or
redemption of an instrument" of the following definition:
-
- " 'adjusted gain on
transfer or redemption of an instrument' means
-
- (a) in relation to the
holder of any income instrument, <<where
-
- (i) an alternative method
has not been applied,>> the amount by which the sum of the
transfer price or redemption payment
of such income instrument in
relation to such holder and any payments received by such holder in
terms of such income instrument
during the accrual period in which
such income instrument is transferred or redeemed, exceeds the sum
of the adjusted initial
amount in relation to such income
instrument and the accrual amount in relation to such accrual
period and any payments made
by such holder in terms of such income
instrument during such accrual period; <<or
-
(ii) an
alternative method has been applied, the amount by which the sum
-
of the transfer price or
redemption payment of such income instrument in relation to such
holder and any payments received by
such holder in
-
terms of such income
instrument during the period from acquisition until transfer or
redemption of such income instrument by
such holder, exceeds the
sum of the initial amount and all amounts determined in accordance
with such alternative method and
any other payments made by such
holder in terms of such income instrument during the period from
acquisition until transfer
or redemption of such income instrument
by such holder>>; or
-
- (b) in relation to the
issuer of any instrument, <<where
-
(i) an
alternative method has not been applied>>, the amount by which
-
the sum of the adjusted
initial amount in relation to such instrument and the accrual
amount in relation to the accrual period
during
-
which such instrument is
transferred or redeemed and any payments received by such issuer in
terms of such instrument during
the accrual period, exceeds the sum
of the transfer price or redemption payment in relation to such
instrument in relation
to such issuer and any payments made by such
issuer in terms of such instrument during such accrual period; <<or
-
(ii) an
alternative method has been applied, the amount by which the sum
-
of the initial amount and all
amounts determined in accordance with such alternative method and
any other payments received
by Such issuer in terms of such
instrument during the period from issue or acquisition until
transfer or redemption of such
instrument by such issuer, exceeds
the sum of the transfer price or redemption payment in relation to
such instrument in relation
to such issuer and any payments made by
such issuer in terms of such instrument during the period from
issue or acquisition
until transfer or redemption of such
instrument by such issuer>>;";
-
- (b) by the substitution
in subsection (1) for the definition of "adjusted loss on
transfer or redemption of an instrument-
of the following
-
definition:
-
- " 'adjusted loss on
transfer or redemption of an instrument' means(a) in relation to the
holder of any income instrument,
<<where
-
- (i) an alternative method
has not been applied>>, the amount by which the sum of the
adjusted initial amount in relation
to such income instrument and
the accrual amount in relation to the accrual period during which
such income instrument is transferred
or redeemed and any payments
made by such holder in terms of such income instrument during such
accrual period, exceeds the
sum of the transfer price or redemption
payment in relation to such income instrument in relation to such
holder and any payments
received by such holder in terms of such
income instrument during such accrual period; <<or
-
- (ii) an alternative
method has been applied, the amount by which the sum of the initial
amount and all amounts determined in
accordance with such
alternative method and any other payments made by such holder in
terms Of Such income instrument during
the period from acquisition
until transfer or redemption of such income instrument by such
holder, exceeds the sum of the transfer
price or redemption payment
in relation to such income instrument in relation to such holder
and any payments received by such
holder in terms of such income
instrument during the period from acquisition until transfer or
redemption of such income instrument
by such holder>>; or
-
- (b) in relation to the
issuer of any instrument, <<where
-
- (i) an alternative method
has not been applied>>, the amount by which the sum of the
transfer price or redemption payment
of such instrument in relation
to such issuer and any payments made by such issuer in terms of
such instrument during the accrual
period during which such
instrument is transferred or redeemed. exceeds the sum of the
adjusted initial amount in relation
to such instrument and the
accrual amount in relation to such accrual period and ally payments
received by such issuer in terms
of such instrument during such
accrual period; <<or
-
- (ii) an alternative
method has been applied, the amount by which the sum of the
transfer price or redemption payment of such
instrument in relation
to such issuer and any payments made by such issuer in
-
terms of such instrument
during the period from issue or acquisition until transfer or
redemption of such instrument by such
issuer, exceeds the sum of
the initial amount and all amounts determined in accordance with
such alternative method and any
other payments received by such
issuer in terms of such instrument during the
-
period from issue or
acquisition until transfer or redemption of such instrument by such
issuer>>;";
-
- (c) by the substitution in
subsection (1) for the definition of "income instrument"
of the following definition:
-
- " 'income instrument'
means-
-
- <<(a) in the case of
any person other than a company,>> any instrument-
-
- **(a)** <<(i)>>
the term of which will, or is reasonably likely to, exceed one
year: and
-
**(b)**
<<(ii)>> which is issued or acquired at a discount or
premium or bears deferred interest; <<and (b)
in the case of
any company, any instrument>>;";
-
(d) by the substitution in
subsection (1) for the words following upon paragraph
-
- (e) of the definition of
"instrument" of the following words: "which was-
<<(i)>> issued or
deemed to have been issued after 15 March 1995;
-
**or**
-
- <<(ii)>>
issued on or before 15 March 1995 and transferred on or after
-
**the date of promulgation
of the Income Tax Act, 1995** <<19
-
July 1995; or
-
- (iii) in so far as it
relates to the holder thereof, issued on or before 15 March 1995
and was unredeemed on 14 March 1996
(excluding any arrangement
contemplated in subparagraphs (i) and (ii))>>, but
excluding-
-
- **(i)** <<(A)>>
any lease agreement; and
-
- **(ii)** <<(B)>>
any agreement qualifying for an allowance contemplated in section
24(2) to the extent that such section is applicable to the holder
of such agreement;",,
-
(e) by the insertion after
subsection (3) of the following subsection: "<<(3A)
Where any person is the holder of
an income instrument which
-
is an instrument as
contemplated in paragraph (iii) of the definition
-
of 'instrument'. the amount
by which the sum of all accrual amounts in relation to all accrual
periods falling within the period
from the date of acquisition
(whether by way of issue or transfer. as the
-
case may be) of such income
instrument by such person until 13 March
-
1996, exceeds the sum of
all interest received by or accrued to such
-
person during such period had
the provisions of this section not been applicable during such
period in respect of such income
instrument, shall for the purposes
of this Act be deemed to have accrued to such person in the year of
assessment during which
such income instrument is transferred by
such holder or redeemed (whichever is the earlier): Provided that
the provisions of
this subsection shall not apply in so far as any
interest in relation to such income instrument was
-
assessed to tax in the hands
of such person under an assessment raised with a date of assessment
before the date of promulgation
of this Act>>.":
-
- (f) by the insertion after
subsection (4) of the following subsection: "<<(4A) Where
in the case of any-
-
(a) holder of an income
instrument any adjusted loss on transfer or
-
redemption of such income
instrument which has been deemed to have been incurred by such
holder in terms of subsection (4)(b)
during any year of
assessment. includes an amount in relation to such income
instrument representing an-
-
- (i) accrual amount; or
-
(ii)
amount determined in accordance with an alternative
-
method, which amount has
been included in the income of the holder during such year of
assessment or any previous year of
assessment, such amount shall
be allowed as a deduction from the income of such holder during
such year of assessment; or
-
- (b) issuer of an
instrument any adjusted gain on transfer or
-
redemption which has been
deemed to have been accrued to such issuer in terms of subsection
(4)(a) during any year of assessment,
-
includes an amount in
relation to such instrument representing an
-
- (i) accrual amount; or
-
- (ii) amount determined
in accordance with an alternative
-
method, which amount
has been allowed as a deduction from the
-
income of such issuer
during such year of assessment or any previous year of
assessment, such amount shall be included in
the income of such
issuer during such year of assessment>>.": and
-
(g) by the insertion after
subsection (5) of the following subsection: "<<(5A) Any
amount which has been deemed to
have been incurred by or
-
accrued to a person, as
the case may be, in respect of an instrument in
-
terms of the provisions
of this section, shall for the purposes of this
-
Act not be deducted from or
included in, as the case may be, the income of such person more
than once by reason of the application
of this section>>.".
-
- (2)(a) Subsection (1)(a),
(b), (f) and (g) shall be deemed to have come into operation on 16
March 1995 and shall apply to all
instruments which are subject to
the provisions of section 24J of the principal Act.
-
- (b) Subsection (1)(c)
shall come into operation on the date of promulgation of this Act
and shall apply to all instruments issued
or transferred on or after
that date.
-
- (c) Subsection (1)(d) and
(e) shall in so far as it relates to any instrument issued on or
before 15 March 1995 and which was
unredeemed on 14 March 1996
(excluding any arrangement contemplated in paragraphs (i) and (ii)
of the definition of "instrument"
in section 24J(1) of the
principal Act) be deemed to have come into operation from the date
of issue or transfer, as the case
may
be, of such instrument to a
person who was the holder thereof on 14 March 1996 and shall apply to
the holder of such an instrument
from such date of issue or transfer.
-
- Amendment of section 27 of
Act 58 of 1962, as amended by section 17 of Act 113 of 1977, section
11 of Act 101 of 1978, section
19 of Act 104 of 1980, section
21 of Act 96 of 1981, section
15 of Act 96 of 1985, section 18 of Act 85 of
1987, section 22 of Act 90
of 1988, section 28 of Act 129 of 1991, section 23
of Act 141 of 1992 and section
23 of Act 113 of 1993
-
- 15. Section 27 of the
principal Act is hereby amended by the substitution in subsection
(2) for the proviso to paragraph (a) of
the following proviso:
-
- "Provided that the
amounts allowed as deductions under this paragraph shall not in the
aggregate exceed an amount which
bears to the taxable income of
such agricultural co-operative for the year of assessment (as
calculated before allowing any
deductions under this paragraph and
sections 11 bis **13bis(7)** and 21 ter and before setting off any
balance of assessed
loss brought forward from a previous year of
assessment) the same ratio as the aggregate value of the business
conducted by
such agricultural co-operative with its members during
such year bears to the aggregate value of all business conducted by
it during such year;".
-
Amendment of
section 29 of Act 58 of 1962, as inserted by section 25 of Act
113 of 1993 and amended by
section 22 of Act 21 of 1995
-
- 16. Section 29 of the
principal Act is hereby amended
(a) by the substitution in
subsection (1) for the definition of
-
"prescribed value"
of the following definition:
-
- " 'prescribed
value', in relation to the assets required to be held at any time
by an insurer in a policyholder fund, means
an amount equal to the
net liabilities of the insurer in respect of the business conducted
by it in the fund concerned in the
Republic **or in any country the
territory of which formerly formed part of the Republic**
determined in the manner as contemplated
in section
-
1(2)(a) of the Insurance Act,
but subject to such modifications as may from time to time be
determined for the purposes of this
section by the Chief Actuary of
the Financial Services Board.";
-
- (b) by the substitution
for paragraph (d) of subsection (4) of the following paragraph:
-
- "(d) a fund, to be
known as the corporate fund, in which shall be placed all the
assets (if any) held by the insurer, and
all liabilities owed by
it, other than those contemplated in paragraphs (a), (b) and (c)
and those relating to business conducted
by it elsewhere than in
the Republic. **or any country the territory of which formerly
formed part of the Republic**"
; and
-
- (c) by the substitution
for paragraph (b) of subsection (14) of the following paragraph:
-
- "(b) any amount
received or accrued from a source outside the Republic in respect
of business conducted by the insurer
in the Republic, **or in any
country the territory of which formerly formed part of the
Republic** shall be deemed to have
been received or accrued from a
source within the Republic-,".
-
- Amendment of section 36 of
Act 58 of 1962, as amended by section 12 of Act 72 of 1963, section
15 of Act 90 of 1964, section 20
of Act 88 of 1965, section
-
23 of Act 55 of 1966, section
16 of Act 95 of 1967, section 14 of Act 76 of
-
1968, section 26 of Act 89 of
1969, section 21 of Act 65 of 1973, section 28 of Act 85 of 1974,
section 20 of Act 104 of 1980,
section 25 of Act 94 of
-
1983, section 16 of Act
96 of 1985, section 14 of Act 70 of 1989, section 26
-
of Act 101 of 1990, section 30
of Act 129 of 1991, section 24 of Act 141 of
-
1992 and section 29 of Act 113
of 1993
-
- 17. Section 36 of the
principal Act is hereby amended by the substitution in subsection
(11) for the definition of "capital
expenditure incurred"
of the following definition:
-
- "capital expenditure
incurred', for the purpose of determining the amount of capital
expenditure incurred during any period
in respect of any mine, means
the amount (if any) by which the expenditure that is incurred during
such period in respect of
such mine and is capital expenditure,
exceeds the sum of
-
the amounts received or
accrued during the said period from disposals of assets the cost of
which has in whole or in part been
included in capital expenditure
taken into account (whether under this Act or any previous Income
Tax Act **or any Income Tax Ordinance of the territory**) for the
purposes of any deduction in respect of such mine under section
15(a) of
this Act or the corresponding provisions of any previous
Income Tax Act; **or, in the case of a company,
-
under the said section or
section 11(2)(i) of the Income Tax Ordinance, 1961 (Ordinance No. 10
of 1961), of the territory, or
the corresponding provisions of any
previous Income Tax Ordinance of the territory**".
-
- Amendment of section 56 of
Act 58 of 1962, as amended by section 18 of Act 90 of 1964, section
25 of Act 55 of 1966, section 33
of Act 89 of 1969, section
-
38 of Act 85 of 1974, section
21 of Act 113 of 1977, section 13 of Act 101 of
-
1978, section 23 of Act 96 of
1981, section 31 of Act 94 of 1983, section 4 of
-
Act 30 of 1984, section 28 of
Act 121 of 1984, section 18 of Act 96 of 1985, section 21 of Act 85
of 1987, section 26 of Act 90
of 1988, section 28 of Act
-
141 of 1992 and section 32 of
Act 113 of 1993
-
- 18. (1) Section 56 of the
principal Act is hereby amended
-
- (a) by the deletion of
paragraph (p) of subsection (1); and
-
- (b) by the substitution
for paragraph (b) Of Subsection (2) of the following paragraph:
-
- "(b) so much of the
sum of the values of all property disposed of
-
<<under donations>>
by a donor who is a natural person **under donations taking effect
on or after 16 March 1988**
as does not during any year of
assessment exceed **R20000: Provided that the donations tax payable
in respect of property disposed
of by a donor under a donation to
or for
-
the benefit of his children
which took effect on or before 24 June 1988 shall not exceed the
donations tax which would have
been payable in respect of such
donation under the provisions of this Part before the amendment of
those provisions by the
Income Tax Act, 1988**
-
<<R25 000>>;".
-
- (2)(a) Subsection (1)(a)
shall come into operation on the date of promulgation of this Act
and shall apply to any property disposed
of under a donation which
takes place on or after that date.
-
- (b) Subsection (1)(b)
shall be deemed to have come into operation as from the commencement
of years of assessment ending on or
after 28 February 1997.
-
- Amendment of section 64 of
Act 58 of 1962, as substituted by section 30 of
-
Act 90 of 1988
-
- 19. (1) Section 64 of the
principal Act is hereby amended by the
-
substitution for the
expression " 15 per cent" of the expression "25 per
cent".
-
- (2) Subsection (1) shall
be deemed to have come into operation on 14 March
-
1996 and shall apply to the
value of any property disposed of under a donation which takes
effect on or after that date.
-
- Amendment of section 64A
of Act 58 of 1962, as inserted by section 4 of Act
-
136 of 1991 and substituted by
section 29 of Act 141 of 1992 and amended by section 33 of Act 113
of 1993 and section 28 of Act
21 of 1995
-
- 20. (1) Section 64A of the
principal Act is hereby amended(a) by the deletion in subsection (1)
of the definition of "leviable
amount" (b) by the
substitution for subsection (2) of the following subsection:
-
- "(2) There shall be
levied and paid for the benefit of the **State**
-
<<National>>
-
- Revenue Fund a levy, to
be known as the levy on financial services, which is calculated at
the rate of 0,75 per cent of
-
- **(a) in the case of a
bank or a branch of a foreign institution
-
within the meaning of
the Banks Act, 1990 (Act No. 94 of 1990), or a
-
mutual bank registered in
terms of the Mutual Banks Act, 1993 (Act No. 124 of 1993), the
leviable amount as determined in relation
to every calendar quarter
commencing on or after 1 October 1991; and
-
- (b) in the case of any
other person liable under subsection (3)** the interest which
accrued to **such** <<any>>
person <<liable under
subsection (3)>>, during every calendar quarter commencing on
or after 1 October 1991, determined
in accordance with any
generally accepted accounting practice adopted by such person, as
applied on
the last day of the relevant
calendar quarter.";
-
- (c) by the substitution
for the words preceding paragraph (a) of subsection (3) of the
following words:
-
- "Persons liable for
the levy in terms of subsection (2)**(b)** shall be;";
-
- (d) by the addition of
the word "and" at the end of paragraph (b) of subsection
(3);
-
- (e) by the deletion of
the word "and" at the end of paragraph (c) of subsection
(3); and
-
(f) by the
deletion of paragraph (d) of subsection (3). -
- (2) Subsection (1) shall
come into operation on 1 October 1996.
-
- Amendment of section 64B
of Act 58 of 1962, as inserted by section 34 of Act
-
113 of 1993 and amended by
section 12 of Act 140 of 1993, section 24 of Act 21 of 1994 and
section 29 of Act 21 of 1995
-
- 21. (1) Section 64B of the
principal Act is hereby amended
-
- (a) by the substitution
in subsection (1) for the words preceding the definition of
"declared" of the following words:
-
- "For the purposes of
this **section** <<Part>>-";
-
(b) by the
insertion in subsection (1) before the definition of
-
"declared" of the
following definition:
-
- " ' <<affected
company' means the other company contemplated in the definition of
'holding company'>>;",
-
(c) by the addition to
subsection (1) of the following definitions: "<<'holding
company' means any company which
holds for its own benefit
-
whether directly, or
indirectly through one or more intermediate
-
companies, together with
shares held in terms of a share incentive
-
- 'intermediate company'
means any company all of whose equity share capital is, together
with shares held in terms of a share
incentive scheme, held by
-
- (a) the first-mentioned
company in the definition of 'holding company';
-
or
-
- (b) (i) one or more
companies which are intermediate companies in terms of paragraph
(a); or
-
- (ii) a 'holding company'
and one or more companies referred to in subparagraph (i);
-
- 'share incentive scheme'
means a scheme in terms of which not more than
-
10 per cent of the equity
share capital of a company is
-
- (a) held by the
full-time employees of such company in terms of a share incentive
scheme carried on for their own benefit;
-
- (b) held by a trustee
for the benefit of such employees, under a scheme referred to in
section 38(2(b) of the Companies Act,
1973 (Act No. 61 of 1973),
or
-
(c) collectively it held by
both such full-time employees and such a trustee.>>";
-
(d) by the substitution for
subsection (2) of the following subsection: "(2) There shall
be levied and paid for the benefit
of the **State**
-
<<National>>
Revenue Fund a tax, to be known as the secondary tax on
-
companies, which is
calculated at the rate of **25 per cent** <<12,5 per cent>>
of the net amount, as determined
in terms of subsection (3), of any
dividend declared by any company on or after **22 June
-
1994** <<14 March
1996>>.";
-
- (e) by the substitution
for paragraph (f)of subsection (5) of the following paragraph:
-
- "(f) any dividend
declared by any <<affected>> company to **any other**
<<a holding>> company <<or
intermediate company>>
(other than a <<holding>> company <<or an
intermediate company which is a company>>
referred to in
paragraph (a)), if-
-
- (i) such **other**
<<holding>> company <<or intermediate company, as
the case may be, was>>, on the
date of such declaration and
throughout the period of 12 months ending on the date of such
declaration **held for its own benefit
all the equity share capital
of such company** <<a holding company or intermediate
company, as the case may be, in relation
to such affected
company>>;
-
- (ii) such **other company
is a** <<holding>> company **which** <<or
intermediate company, as the case may
be>>, has its place of
effective management in the Republic and <<at least 90 per
cent of>> its profits (excluding
profits derived by way of
dividends)
-
**are** <<during the
three years of assessment immediately preceding the date of such
declaration, were>> derived
-
**solely** from a source
within the Republic;
-
(iiA) such
dividend was declared solely out of profits earned by such
-
<<affected>>
company during any period in which **all its equity share capital
was so held by such other company
for its own benefit** <<it
was an affected company in relation to such holding company or
intermediate company, as the
case may be>>; and
-
- (iii) such <<affected>>
company has by notice in writing furnished to the Commissioner by
not later than the last
day on which secondary tax on companies
would, but for this exemption, have been payable in respect of the
declaration of such
dividend or such later date as the Commissioner
may approve, elected that such dividend be exempt from the payment
of secondary
tax on companies in terms of this paragraph; **and**",
by the substitution for paragraph (g) of subsection (5) of the
following paragraph: any dividend **distributed** <<declared>>
by a company which carries on long-term insurance business
out of
profits derived during any year of assessment commencing prior to 1
July 1993;";
-
- (g) by the addition of the
word "and" at the end of paragraph (g) of subsection (5);
and
-
(h) by the addition to
subsection (5) of the following paragraph: "<<(h) in the
case of any company which has its place
of effective
management outside the
Republic and which carries on a trade through
a branch or an agency within
the Republic, any dividend declared by
-
such company out of profits
(excluding profits derived from the mining for gold and from
carrying on long-term insurance business)
derived through such
branch or agency>>.".
-
(2)(a)
Subsection (1)(a), (b), (c) and (e) shall come into operation on 1 -
August 1996 and shall apply to
any dividend declared on or after that date.
-
- (b) Subsection (1)(h)
shall apply in respect of any dividend declared during any year of
assessment ending on or after 1 April
1996.
-
- Amendment of section 64C
of Act 58 of 1962, as inserted by section 34 of Act
-
113 of 1993 and amended by
section 13 of Act 140 of 1993, section 25 of Act 21 of 1994 and
section 30 of Act 21 of 1995
-
- 22. (1) Section 64C of the
principal Act is hereby amended by the substitution for paragraph
(g) of subsection (4) of the following
paragraphs:
-
"(g)
to a loan made by any company to any other company, if such loan is
utilised by such other company in the Republic
and the equity share
capital of
-
**(i) one
of such companies is held by the other such company; or -
- (ii)** both such
companies is held by the same person or persons
-
- <<(h) to a loan made
by any affected company to-
-
(i) a
holding company, in relation to such affected company-, or
-
- (ii) any other affected
company, where both such affected
-
companies are directly or
indirectly held by the same holding company, if such loan is
utilised by such holding company or
other affected company, as the
case may be, in the Republic; and>>".
-
- (2) Subsection (1) shall
come into operation on 1 August 1996 and shall apply to any loan
made on or after that date.
-
- Amendment of section 79 of
Act 58 of 1962, as amended by section 26 of Act 69 of 1975, section
23 of Act 91 of 1982 and section
32 of Act 21 of 1995
-
- 23. (1) Section 79 of the
principal Act is hereby amended by the
-
substitution in subsection (1)
for the second proviso of the following proviso:
-
- "Provided further
that where the Commissioner has in respect of any year of
assessment made an assessment upon any company
for normal tax
-
purposes he shall not after
the expiration of three years from the date of the said assessment
(or, where more than one such
assessment has been made, from the
date of the latest of such assessments) make any assessment in
respect of any amount of
undistributed profits tax <<or
secondary tax on companies>> payable by the company in
respect of the said year,
unless the Commissioner is satisfied that
the fact that an assessment in respect of the said amount was not
previously made
was due to fraud or misrepresentation or
non-disclosure of material facts.".
-
(2)
Subsection (1) shall be deemed to have come into operation on 17
March -
1993.
-
- Amendment of section
89quat of Act 58 of 1962, as inserted by section 34 of
-
Act 121 of 1984 and
substituted by section 22 of Act 65 of 1986 and amended by section
18 of Act 70 of 1989, section 42 of Act
113 of 1993, section 15 of
Act
-
140 of 1993 and section 33 of
Act 21 of 1995
-
- 24. (1) Section 89quat of
the principal Act is hereby amended by the substitution for
subsections (3) and (3A) of the following
subsections,
-
respectively:
-
- "(3) Where the
Commissioner having regard to the circumstances of the case is
satisfied that any amount has been included
in the taxpayer's
taxable income or that any deduction or allowance claimed by the
taxpayer has not been allowed, and the taxpayer
has on reasonable
grounds contended that such amount should not have been so included
or that such deduction or allowance should
have been allowed, the
Commissioner may, <<subject to the provisions of section
103(6)>>,
-
direct that interest shall
not be paid by the taxpayer on so much of the said normal tax as is
attributable to the inclusion
of such amount or
-
the disallowance of such
deduction or allowance.
-
- (3A) Where any natural
person has, in respect of the year of assessment during which he
for the first time became a provisional
taxpayer, become liable for
the payment of interest under subsection (2), the
-
Commissioner may, <<subject
to the provisions of section 103(6)>>, if he is satisfied
that the circumstances war-rant
such action, direct that interest
shall not be paid by such person in respect of such year of
assessment.".
-
- (2) Subsection (1) shall
come into operation on the date of promulgation of this Act and
shall apply to any interest attributable
to any tax arising from the
application of the provisions of section 103(1) of the principal Act
to any transaction, operation
or scheme entered into or carried out
on or after that date.
-
- Amendment of section
89quin of Act 58 of 1962, as inserted by section 34 of
-
Act 121 of 1984
-
- 25. Section 89quin of the
principal Act is hereby amended by the substitution for paragraph
(a) of the following paragraph:
-
- "(a) any interest is
payable under the provisions of section 88, 89,
-
89bis or 89 quan; 88 or
paragraph 22 of the Sixth Schedule**".
-
- Amendment of section 91 of
Act 58 of 1962, as amended by section 16 of Act 6 of 1963, section
26 of Act 55 of 1966, section 38
of Act 89 of 1969, section
-
36 of Act 121 of 1984 and
section 39 of Act 129 of 1991
-
- 26. Section 91 of the
principal Act is hereby amended by the substitution for subsection
(2) of the following subsection:
-
- "(2) Notwithstanding
anything contained in the Magistrates' Courts Act,
-
1944 (Act No. 32 of 1944),
**or the Magistrates' Courts Ordinance, 1963 (Ordinance No. 29 of
1963), of the territory** a statement
for any amount whatsoever may
be filed in terms of subsection (1)(b) with the clerk of the court
of the magistrate having jurisdiction
in respect of the person by
whom such amount is payable in accordance with the provisions of
this Act.".
-
- Amendment of section 101
of Act 58 of 1962, as amended by section 29 of Act 90 of 1962,
section 22 of Act 52 of 1970, section
39 of Act 94 of 1983 and
-
section 40 of Act 129 of 1991
-
- 27. (1) Section 101 of the
principal Act is hereby amended by the substitution for the
expression "R10" in subsection
(8) of the expression
"R25".
-
- (2) Subsection (1) shall
come into operation on the date of promulgation of this Act and
shall apply to any failure or default
to act on or after that date.
-
- Amendment of section 102A
of Act 58 of 1962, as inserted by section 40 of Act
94 of 1983
-
- 28. (1) Section 102A of
the principal Act is hereby amended by the substitution for the
expression "R10" of the expression
"R25".
-
- (2) Subsection (1) shall
come into operation on the date of promulgation of this Act and
shall apply to any excess arising on
or after that date.
-
Amendment of
section 103 of Act 58 of 1962, as amended by section 14 of Act
101 of 1978, section 37 of Act
121 of 1984 and section 19 of Act 70 of 1989
-
29. Section
103 of the principal Act is hereby amended- -
- (a) by the substitution
for subparagraph (i) of paragraph (b) of subsection (1) of the
following subparagraph:
-
- "(i) was entered into
or carried out-
-
- <<(aa) in the case
of a transaction, operation or scheme in the context of business,
in a manner which would not normally
be employed for bona fide
business purposes, other than the obtaining of a tax benefit; and
-
- (bb) in the case of any
other transaction, operation or scheme, being a transaction,
operation or scheme not failing within
the provisions of item
(aa)>>, by means or in a manner which would not normally be
employed in the entering into or
carrying out of a transaction,
operation or scheme of the nature of the transaction, operation or
scheme in question; or";
-
- (b) by the substitution
for paragraph (c) of subsection (1) of the following paragraph:
-
- "(c) was entered
into or carried out solely or mainly for the purposes of **the
avoidance or the postponement of liability
for the payment of any
tax, duty or levy (whether imposed by this Act or any previous
Income Tax Act or any other law administered
by the Commissioner)
or the reduction of the amount of such liability**
-
<<obtaining a tax
benefit>>,"; and
-
(c) by the
addition of the following subsections: -
- " <<(6) Where
the Commissioner has applied the provisions of this section in the
determination of any taxpayer's
liability for any tax, duty or levy
imposed in terms of this Act, the Commissioner shall not exercise
his discretion in terms
of the provisions of section
-
89quat(3) or (3A) so as to
direct that interest shall not be payable in respect of that
portion of any tax which is attributable
to the application of this
section.
-
- (7) For the purposes of
subsection (1) 'tax benefit' includes any avoidance, postponement
or reduction of liability for payment
of any tax, duty or levy
imposed by this act or by any other law administered by the
Commissioner>>.".
-
- (2) Subsection (1) shall
come into operation on the date of promulgation of this Act and
shall apply to any transaction, operation
or scheme entered into or
carried out on or after that date: Provided that the provisions of
section
103 of the principal Act shall,
in relation to any transaction, operation or scheme entered into or
carried out before that date,
continue to apply as if subsection (1)
had not been enacted.
-
- Amendment of paragraph 4
of First Schedule to Act 58 of 1962, as amended by section 17 of Act
72 of 1963, section 41 of Act 89
of 1969, section 42 of Act
-
94 of 1983 and section 43 of
Act 113 of 1993
-
- 30. Paragraph 4 of the
First Schedule to the principal Act is hereby amended by the
deletion of subparagraph (2).
-
- Amendment of paragraph 5
of First Schedule to Act 58 of 1962, as substituted by section 18 of
Act 72 of 1963 and amended by section
23 of Act 52 of 1970, section
30 of Act 88 of 1971, section 28 of Act 103 of 1976, section 23 of
Act 104 of 1980 and section
26 of Act 96 of 1981
-
- 31. Paragraph 5 of the
First Schedule to the principal Act is hereby amended-
(a) by the substitution for
subparagraph (1) of the following subparagraph: "(1) The value
to be placed upon livestock for
the purposes of this
-
Schedule shall, subject
to the provisions of paragraph 4(1) and
-
subparagraph (2) of this
paragraph
-
- **(a) as respects
livestock held and not disposed of at the end of the year of
assessment ending on 28 February 1982-
-
- (i) in respect of
purchased breeding stock, as defined in subpara- graph (1A), which
was acquired by the farmer during the year
of assessment ended on
28 February 1981 or ending on 28 February 1982, be the purchase
price incurred by the farmer in respect
of such stock, less an
amount equal to-
-
section 30 of Act 88 of 1971,
section 28 of Act 103 of 1976, section 23 of
-
Act 104 of 1980 and
section 26 of Act 96 of 1981
-
- 31. Paragraph 5 of the
First Schedule to the principal Act is hereby amended-
(a) by the substitution for
subparagraph (1) of the following subparagraph: "(1) The value
to be placed upon livestock for
the purposes of this
-
Schedule shall, subject
to the provisions of paragraph 4(1) and
-
subparagraph (2) of this
paragraph
-
- **(a) as respects
livestock held and not disposed of at the end of the year of
assessment ending on 28 February 1982-
-
- (i) in respect of
purchased breeding stock, as defined in subpara- graph (1A), which
was acquired by the farmer during the year
of assessment ended on
28 February 1981 or ending on 28 February 1982, be the purchase
price incurred by the farmer in respect
of such stock, less an
amount equal to-
-
(aa)
seventy-five per cent of such purchase price, if such
-
stock was acquired by the
farmer during the year of assessment ended on 28 February 1981;
or
-
- (bb) fifty per cent of
such purchase price, if such stock was acquired by the farmer
during the year of assessment ending
on
-
28 February 1982; and
-
(ii) in
respect of livestock other than livestock referred to in
-
subitem (i), be the standard
value applicable to the livestock; and
-
- (b)** as respects
livestock held and not disposed of at the end of the year of
assessment, **ending on 28 February 1983 or any
succeeding year of
assessment** be the standard value applicable to the
livestock.": and
-
(b) by the deletion of
subparagraph (1A).
-
- Amendment of paragraph 11
of First Schedule to Act 58 of 1962, as substituted
-
- (iii)>> where the
farmer is a company, **and any livestock or produce** has on or
after 21 June 1993 been distributed
in specie (whether such
distribution occurred by means of a dividend, including a
liquidation dividend, a total or partial
reduction of capi
-
- other than the disposal
thereof in the ordinary course of his farming operations and
under circumstances other than those
contemplated in subparagraph
(a) or (b) or item (i), (ii) or (iii) of this subparagraph>>,
there shall be included
in the
-
or
-
- (B) where such livestock
or produce has been applied, disposed of or distributed in a manner
contemplated in subparagraph (b)
or (c)>>, an amount equal to
the **current** market value of such livestock or produce:
-
<<Provided
that where
-
- (a) any livestock or
produce so applied, is used or consumed by the farmer in the
ordinary course of his farming operations,
the amount included in
his income under this paragraph shall for the purposes of this Act
be deemed to be expenditure incurred
in respect of the acquisition
by him of such livestock or produce; or
-
(b) the
provisions of subparagraph (c)(ii) are applicable and an amount
of consideration as
contemplated in such subparagraph has been received by or accrued
to the fanner, the amount included in
his income in terms of this
paragraph shall be reduced by such consideration>>.".
-
- Deletion of paragraph 18
of First Schedule to Act 58 of 1962
-
- 33. Paragraph 15 of the
First Schedule to the principal Act is hereby deleted.
-
- Amendment of paragraph 1
of Fourth Schedule to Act 58 of 1962, as added by section 19 of Act
6 of 1963 and amended by section
22 of Act 72 of 1963, section 44 of
Act 89 of 1969, section 24 of Act 52 of 1970, section 37 of Act
-
88 of 1971, section 47 of Act
85 of 1974, section 6 of Act 30 of 1984, section
-
38 of Act 121 of 1984, section
20 of Act 70 of 1989, section 44 of Act 101 of
-
1990, section 44 of Act 129 of
1991, section 33 of Act 141 of 1992, section 48 of Act 113 of 1993,
section 16 of Act 140 of 1993
and section 37 of Act 21 of
-
1995
-
- 34. Paragraph 1 of the
Fourth Schedule to the principal Act is hereby amended by the
deletion of paragraph (i) of the definition
of "remuneration".
-
Amendment of
paragraph 11B of Fourth Schedule to Act 58 of 1962, as inserted by
section 41 of Act 90 of 1988 and amended by section
22 of Act 70 of
1989, section 47 of Act 101 of 1990, section 46 of Act 129 of 1991,
section 34 of
-
Act 141 of 1992, section 3 of
Act 168 of 1993 and section 40 of Act 21 of 1995
-
35. Paragraph 11B of the
Fourth Schedule to the principal Act is hereby amended
-
- (a) by the addition in
subparagraph (1) to the definition of "tax period" of the
following proviso:
-
- "<<Provided
that where any employer has for the purposes o paragraph 15 applied
for separate registration of branches
of his undertaking, each such
branch shall for the purposes of this definition be deemed at the
option of the employer to be
a separate employer>>;";
and
-
(b) by the addition to
subparagraph (4A) of the following proviso: "<<Provided
that the provisions of this subparagraph
shall not apply in
-
respect of any application
for amendment of the determination of the amount of Standard Income
Tax on Employees received by
the Commissioner on or after 1
December 1996>>.".
-
- Amendment of paragraph 15
of Fourth Schedule to Act 58 of 1962, as added by section 19 of Act
6 of 1963 and amended by section
7 of Act 30 of 1984 and section 43
of Act 21 of 1995
-
- 36. Paragraph 15 of the
Fourth Schedule to the principal Act is hereby amended by the
substitution for subparagraph (1) of the
following subparagraph:
-
- "(1) Every person who
is an employer shall apply to the Commissioner in such form as the
Commissioner may prescribe for registration
as an employer
-
**(a) in
the case of a person who is an employer on the first day of March,
-
1963 not later than the
thirty-first day of March, 1963; and
-
- (b) in the case of a
person who becomes an employer after the first day o March, 1963**
within 14 days after becoming an employer,
or **in either such
case** within such further period as the Commissioner may
-
approve:
-
- <<Provided that
where no one of such employer's employees is liable for normal lax,
the provisions of this paragraph shall
not apply to such
employer>>.".
-
- Amendment of paragraph 18
of Fourth Schedule to Act 58 of 1962, as added by section 19 of Act
6 of 1963 and amended by section
28 of Act 90 of 1964, section 42 of
Act 88 of 1971, section 49 of Act 85 of 1974, section 19 of Act
-
104 of 1979, section 26 of Act
65 of 1986, section 9 of Act 108 of 1986, section 23 of Act 70 of
1989 and section 50 of Act 113
of 1993
-
- 37. (1) Paragraph 18 of
the Fourth Schedule to the principal Act is hereby amended by the
substitution for the expression "R35000"
in subitem (i) of
item (d) of subparagraph (1) of the expression "R50000".
-
- (2) Subsection (1) shall
be deemed to have come into operation as from the commencement of
years of assessment ending on or after
1 January 1997.
-
- Deletion of heading
preceding paragraph 29 of Fourth Schedule to Act 58 of 1962
-
- 38. The Fourth Schedule to
the principal Act is hereby amended by the deletion of the heading
preceding paragraph 29.
-
- Deletion of headings
following paragraph 32 of the Fourth Schedule to Act 58 of 1962
-
- 39. The Fourth Schedule to
the principal Act is hereby amended by the deletion of the headings
following paragraph 32.
-
Amendment of paragraph 1 of
Seventh Schedule to Act 58 of 1962, as added by section 46 of Act
121 of 1984 and amended by section
26 of Act 96 of 1985, Government
Notice No. R.2706 of 29 November 1985, section 33 of Act 65 of
-
1986, Government Notice No.
R.2683 of 19 December 1986, section 28 of Act 85 of 1987, Government
Notice No. R.714 of 14 April
1989, section 24 of Act 70 of 1989,
Government Notice No. R.763 of 29 March 1990, section 55 of Act 101
of 1990, section 35 of
Act 141 of 1992, section 52 of Act 113 of
1993 and section 30 of Act 21 of 1994
-
- 40. (1) Paragraph 1 of the
Seventh Schedule to the principal Act is hereby amended by the
substitution in the definition of "official
rate of interest"
for the expression 14 per cent" of the expression " 16 per
cent".
-
- (2) Subsection (1) shall
be deemed to have come into operation on 1 September
-
1995.
-
- Amendment of expression in
principal Act
-
41. The
principal Act is hereby amended by the substitution for the
expression "State Revenue Fund", wherever it occurs,
of the
expression "National Revenue Fund".
-
- Amendment of section 9 of
Act 21 of 1994
-
- 42. Section 9 of the
Income Tax Act, 1994, is hereby amended by the substitution for the
expression " 1 April 1994" in paragraph (b) of subsection
(2) of the
expression "1 April 1992".
-
- Withdrawal of Government
Notice No. 1154 of 4 August 1995
-
43. (1) Government Notice
No. 1154 of 4 August 1995 is hereby withdrawn. (2) Subsection (1)
shall be deemed to have come into
operation on 4
-
August 1995. Repeal of laws,
and saving
-
44. (1) The Income Tax
Amendment Act, 1987 (Act No. 13 of 1987), of the
-
former Republic of Ciskei and
the Income Tax Amendment Decree, 1993 (Decree No.
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2 of 1993), of the former
Republic of Ciskei are hereby repealed.
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- (2) Any tax or levy which
has become payable under a law repealed by subsection (1) before or
on the date of the repeal of such
a law, but which has not at the
said date been paid, shall be recovered in accordance with and
subject to the provisions of the
law concerned as if that law had
not been so repealed.
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- (3) Subsections (1) and
(2) shall be deemed to have come into operation on 1
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October 1995.
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- Commencement of certain
amendments
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- 45. Save in so far as is
otherwise provided therein or the context otherwise indicates, the
amendments effected to the principal
Act by this Act, shall for the
purposes of assessments in respect of normal tax under the principal
Act, be deemed to have come
into operation as from the commencement
of years of assessment ending on or after 1 January 1997.
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- Short title
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- 46. This Act shall be
called the Income Tax Act, 1996.
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SCHEDULE
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RATES
OF NORMAL TAX PAYABLE BY PERSONS OTHER THAN COMPANIES IN RESPECT OF
THE YEARS OF ASSESSMENT ENDING 28 FEBRUARY 1997 AND
30 JUNE 1997,
AND BY COMPANIES IN RESPECT OF YEARS OF ASSESSMENT ENDING DURING THE
PERIOD OF 12
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MONTHS ENDING 31 MARCH 1997
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(SECTION
1)
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- 1. The rates of normal tax
referred to in section 1 of this Act in respect of persons other
than companies are as follows:-
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- (a) In respect of the
taxable income of any natural person, an amount of tax calculated
in accordance with the table below:
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- Taxable Income Rates of
Tax
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in respect of Natural
Persons
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- Where the taxable income
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does not exceed
R15000 17 per cent of each R1 of the taxable income:
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- exceeds R15000 but does
not
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exceed R20000 R2550 plus
19 per cent of the amount
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by which the taxable
income exceeds
R15000;
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- R20000 "
R30000 R3500 plus 21 per cent of the amount by which the
taxable income exceeds R20000;
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- R30000 "
R40000 R5600 plus 30 per cent of the amount by which the
taxable income exceeds R30000;
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- R40000 "
R60000 R8 600 plus 41 per cent of the amount by which the
taxable income exceeds R40000;
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- R60000 "
R80000 R16 800 plus 43 per cent of the amount by which the
taxable income exceeds R60 000
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- R80000 "
R100000 R25400 plus 44 per cent of the amount by which the
taxable income exceeds
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- R80000;
R100000 R34200 plus 45 per cent of the amount by which the
taxable income exceeds R100000;
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- (b) in respect of the
taxable income of any person other than a natural person, an amount
of tax calculated in accordance with
the table below:
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- Taxable
Income Rates of Tax in respect of Persons other than Natural
Persons
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- Where the taxable income
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- does not exceed R5000 17
per cent of each R1 of the taxable exceeds R5000 but does not
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exceed R10 000 R850
plus 19 per cent of the amount taxable income exceeds R5
000;
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R10000 "
R15000 R1 800 plus 21 per cent of the amount by which the
taxable income exceeds R10 000;
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- R15000 "
R20000 R2 850 plus 24 per cent of the amount by which the
taxable income exceeds R15 000;
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- R20000 "
R30000 R4 050 plus 28 per cent of the amount by which the
taxable income exceeds R20 000;
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- R30000 "
R40000 R6 850 plus 36 per cent of the amount by which the
taxable income exceeds R30 000:
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- R40000 "
R50000 R10 450 plus 41 per cent of the amount by which the
taxable income exceeds
R40 000;
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- R50000 "
R60000 R14 550 plus 42 per cent of the amount by which the
taxable income exceeds
R50 000;
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- R60000 "
R70000 R18 750 plus 43 per cent of the amount by which the
taxable income exceeds
R60 000;
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- R70000 "
R100000 R23 050 plus 44 per cent of the amount by which the
taxable income exceeds
R70 000;
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- R100000 R36 250
plus 45 per cent of the amount by which the taxable income
exceeds R100 000.
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- 2. The rates of normal tax
referred to in section 1 of this Act in respect of companies are,
subject to the provisions of paragraph
4, as follows:-
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- (a) On each rand of the
taxable income of any company (excluding taxable income referred to
in subparagraphs (b), (c), (d) and
(e)), 35 cents, or, in the case
of a company which mines for gold on any gold mine and which is in
terms of an option exercised
by it exempt from the payment of
secondary tax on companies, 42 cents;
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- (b) on each rand of the
taxable income derived by any company from
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mining for gold on any gold
mine (with the exclusion of so much of the taxable income as the
Commissioner determines to be attributable
to the inclusion in the
gross income of any amount referred to in paragraph (j) of the
definition of "gross income"
in section 1 of the
principal Act, but after the set-off of any as assessed loss in
terms of section 20(1) of the principal
Act), a percentage
determined in accordance with the formula:
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y
= 43 - 215
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x
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- or, in the case of a
company which is in terms of an option exercised by it exempt from
the payment of secondary tax on companies,
in accordance with the
formula:
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y
= 51 - 255
x
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- in which formulae y
represents such percentage and x the ratio expressed as a
percentage which the taxable income so derived
(with the said
exclusion, but before the set-off of any assessed loss or deduction
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which is not attributable to
the mining for gold from the said mine)
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bears to the income so
derived (with the said exclusion);
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(c) on
each rand of the taxable income of any company, the sole or
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principal business of which
in the Republic is, or has been, mining for
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-old and the determination of
the taxable income of which for the period assessed does not result
in an assessed loss, which
the Commissioner determines to be
attributable to the inclusion in its gross income of
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any amount referred to
in paragraph (j) of the definition of "gross
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income" in section 1 of
the principal Act, a rate equal to the average rate of normal tax
or 35 cents. whichever is higher:
Provided that for the purposes of
this subparagraph. the average rate of normal tax shall be
determined by dividing the total
normal tax (excluding the tax
determined in accordance with this subparagraph for the period
assessed) paid by the company
in respect of its aggregate taxable
income from gold mining for the period from 1 July 1916 to the end
of the period
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assessed, by the number of
rands contained in the said aggregate taxable income;
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- (d) on each rand of the
taxable income derived by any company from carrying on long-term
insurance business
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- (i) where such taxable
income has been determined in terms of the provisions of section 28
of the principal Act, 45 cents; or
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- (ii) where such taxable
income has been determined in terms of the provisions of section 29
of the principal Act-
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- (aa) in respect of its
individual policyholder fund. 30 cents: and
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- (bb) in respect of its
company policyholder fund and corporate fund. 35 cents;
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- (e) on each rand of the
taxable income (excluding taxable income referred to in
subparagraphs (b), (c) and (d)) derived by a
company which has its
place of effective management outside the Republic and which
carries oil a trade through a branch or
agency within the Republic,
40 cents:
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- Provided that the tax
determined in accordance with any of subparagraphs
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(a) to (e), inclusive, shall
be payable in addition to the tax determined in accordance with any
other of the said subparagraphs.
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- 3. That the rates set
forth in paragraphs 1 and 2 shall be the rates required to be fixed
by Parliament in accordance with the
provisions of section 5(2) of
the principal Act. in respect of taxable incomes derived from
sources within
or deemed to be within the
Republic.
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4. Any
company which qualifies for exemption under the provisions of
section
2 of the Company Tax Amendment
Decree, 1994 (Decree No. 2 of 1994 of Ciskei), shall be exempt from
normal tax on so much of its
taxable income as is derived from a
source within the territory of the former Republic of Ciskei.
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- 5. For the purposes of
paragraph 2 income derived from mining for gold shall include any
income derived from silver, osmiridium,
uranium, pyrites or other
minerals which may be won in the course of mining for gold, and any
other income which results directly
from mining for gold.
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6. In this Schedule, unless
the context otherwise indicates, any word or expression to which a
meaning has been assigned in the
principal Act, bears the meaning so
assigned.
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