Category: Section 41 (ITA) – General

Section 41

 

  1. Heading substituted by section 51 of Act 35 of 2007 and section 72 of Act 22 of 2012 effective on 1 January 2013.

 

  1. Definition of “allowance asset” substituted by section 49 of Act 45 of 2003 and section 61 of Act 7 of 2010 effective on 1 January 2010.

 

  1. Definition of “associated group of companies” inserted by section 37 of Act 31 of 2005 effective on 8 November 2005.

 

  1. Definition of “base cost” amended by section 32 of Act 8 of 2007 and section 52 of Act 35 of 2007.

 

  1. Definition of “company” inserted by section 47 of Act 17 of 2009 effective on 1 January 2010 and substituted by section 67 of Act 24 of 2011 effective on 1 January 2012.

 

  1. Definition of “disposal” substituted by section 37 of Act 31 of 2005 effective on 8 November 2005.

 

  1. Subparagraph (b)(i) of definition of “domestic financial instrument holding company” substituted by section 90 of Act 31 of 2013 effective on 12 December 2013.

 

  1. Subparagraph (b)(ii) of definition of “domestic financial instrument holding company” substituted by section 90 of Act 31 of 2013 effective on 12 December 2013.

 

  1. Subparagraph (b)(iii) of definition of “domestic financial instrument holding company” substituted by section 90 of Act 31 of 2013 effective on 12 December 2013.

 

  1. Subparagraph (b)(iv) of definition of “domestic financial instrument holding company” substituted by section 90 of Act 31 of 2013 effective on 12 December 2013.

 

  1. Subparagraph (b)(vi) of definition of “domestic financial instrument holding company” substituted by section 90 of Act 31 of 2013 effective on 12 December 2013.

 

  1. Subparagraph (c)(ii)(bb) of definition of “domestic financial instrument holding company” substituted by section 28 of Act 20 of 2006.

 

  1. Paragraph (c)(iii) of definition of “domestic financial instrument holding company” substituted by section 28 of Act 20 of 2006.

 

  1. Paragraph (c)(iv) of definition of “domestic financial instrument holding company” added by section 28 of Act 20 of 2006.

 

  1. Definition of “domestic financial instrument holding company” amended by section 49 of Act 45 of 2003 and section 32 of Act 32 of 2004 and substituted by section 37 of Act 31 of 2005 effective on 8 November 2005.

 

  1. Definition of “equity share” deleted by section 32 of Act 8 of 2007 and inserted by section 47 of Act 17 of 2009 effective on 1 January 2010.

 

  1. Words preceding paragraph (a) of definition of “foreign financial instrument holding company” substituted by section 61 of Act 7 of 2010.

 

  1. Subparagraph (b)(i) of definition of “foreign financial instrument holding company” substituted by section 28 of Act 20 of 2006.

 

  1. Subparagraph (b)(ii) of definition of “foreign financial instrument holding company” substituted by section 28 of Act 20 of 2006.

 

  1. Paragraph (b) of definition of “foreign financial instrument holding company” amended by section 28 of Act 20 of 2006.

 

  1. Paragraph (c) of definition of “foreign financial instrument holding company” substituted by section 32 of Act 8 of 2007.

 

  1. Words preceding paragraph (c)(i) of definition of “foreign financial instrument holding company” substituted by section 25 of Act 3 of 2008.

 

  1. Item (c)(i)(bb)(B) of definition of “foreign financial instrument holding company” substituted by section 28 of Act 20 of 2006.

 

  1. Subparagraph (c)(i)(dd) inserted by section 28 of Act 20 of 2006.

 

  1. Definition of “foreign financial instrument holding company” substituted by section 49 of Act 45 of 2003, amended by section 32 of Act 32 of 2004, substituted by section 37 of Act 31 of 2005 and amended by section 32 of Act 8 of 2007.

 

  1. Subparagraph (i)(aa) of definition of “group of companies” substituted by section 25 of Act 3 of 2008.

 

  1. Subparagraph (i)(bb) of definition of “group of companies” substituted by section 61 of Act 7 of 2010 effective on 1 January 2011 and section 90 of Act 31 of 2013 effective on 12 December 2013.

 

  1. Subparagraph (i)(cc) of definition of “group of companies” amended by section 25 of Act 3 of 2008.

 

  1. Subparagraph (i)(dd) of definition of “group of companies” amended by section 25 of Act 3 of 2008 and section 90 of Act 31 of 2013 effective on 1 January 2013.

 

  1. Subparagraph (i)(ee) of definition of “group of companies” added by section 25 of Act 3 of 2008 and amended by section 90 of Act 31 of 2013 effective on 1 January 2013.

 

  1. Subparagraph (i)(ff) of definition of “group of companies” added by section 90 of Act 31 of 2013 effective on 1 January 2013.

 

  1. Definition of “group of companies” inserted by section 52 of Act 35 of 2007, with effective dates as follows:
  2. To the extent that it applies for purposes of – (a) the definition of “dividend” in section 1 of the Income Tax Act, 1962 (Act No. 58 of 1962), is deemed to have come into operation on 1 October 2007 and shall apply in respect of any amount distributed on or after that date; (b) Part III of that Act, operational on 1 January 2009;  (c) Part VII of that Act, is deemed to have come into operation on 1 October 2007 and shall apply in respect of any dividend declared on or after that date;  and (d) paragraph 12 of the Eighth Schedule to that Act, is deemed to have come into operation on 1 October 2007 and shall apply in respect of any disposal on or after that date..

 

  1. Proviso to paragraph (a) of definition of “prescribed proportion” substituted by section 61 of Act 7 of 2010.

 

  1. Paragraph (a) of definition of “prescribed proportion” substituted by section 52 of Act 35 of 2007.

 

  1. Words preceding subparagraph (b)(i) of definition of “prescribed proportion” substituted by section 61 of Act 7 of 2010 effective on 1 January 2011.

 

  1. Definition of “prescribed proportion” inserted by section 37 of Act 31 of 2005 and amended by section 32 of Act 8 of 2007.

 

  1. Definition of “qualifying interest” amended by section 37 of Act 31 of 2005 and deleted by section 25 of Act 3 of 2008.

 

  1. Definition of “resident” inserted by section 61 of Act 7 of 2010 effective on 1 January 2011 and deleted by section 67 of Act 24 of 2011 effective on 1 January 2012.

 

  1. Definition of “shareholder” substituted by section 49 of Act 45 of 2003 and section 90 of Act 31 of 2013 effective on 24 October 2013.

 

  1. Paragraph (a) of definition of “trading stock” amended by section 61 of Act 7 of 2010.

 

  1. Paragraph (b) of definition of “trading stock” deleted by section 61 of Act 7 of 2010 effective on 1 January 2010.

 

  1. Definition of “trading stock” inserted by section 49 of Act 45 of 2003 and substituted by section 52 of Act 35 of 2007.

 

  1. Subsection (2) substituted by section 49 of Act 45 of 2003, section 32 of Act 32 of 2004, section 28 of Act 20 of 2006, section 52 of Act 35 of 2007, section 67 of Act 24 of 2011 effective on 21 October 2008, section 73 of Act 22 of 2012 effective on 1 January 2013, section 90(1)(g) of Act 31 of 2013 effective on 1 January 2013 and section 90(1)(h) of Act 31 of 2013 effective on 1 April 2013.

 

  1. Subsection (3) deleted by section 37 of Act 31 of 2005 and inserted by section 52 of Act 35 of 2007.

 

  1. Item (4)(a)(i)(aa) substituted by section 90 of Act 31 of 2013 effective on 12 December 2013.

 

  1. Subparagraph (4)(a)(i) substituted by section 67 of Act 24 of 2011 effective on 1 January 2011.

 

  1. Subparagraph (4)(a)(ii) substituted by section 49 of Act 45 of 2003, section 32 of Act 8 of 2007 and section 52 of Act 35 of 2007.

 

  1. Subparagraph (4)(a)(iii) added by section 90 of Act 31 of 2013 effective on 24 October 2013.

 

  1. Subparagraph (4)(b)(i) substituted by section 90 of Act 31 of 2013 effective on 12 December 2013.

 

  1. Paragraph (4)(b) substituted by section 67 of Act 24 of 2011 effective on 1 January 2011.

 

  1. Paragraph (4)(c) substituted by section 67 of Act 24 of 2011 effective on 1 January 2011.

 

  1. Paragraph (4)(d) substituted by section 32 of Act 8 of 2007.

 

  1. Subsection (5) deleted by section 52 of Act 35 of 2007 and inserted by section 25 of Act 3 of 2008.

 

  1. Subsection (6) deleted by section 37 of Act 31 of 2005.

 

  1. Subsection (7) added by section 37 of Act 31 of 2005 effective on 8 November 2005 and substituted by section 61 of Act 7 of 2010 effective on 2 November 2010.

 

  1. Subsection (8) added by section 37 of Act 31 of 2005, amended by section 52 of Act 35 of 2007 and section 67 of Act 24 of 2011 and deleted by section 90 of Act 31 of 2013 effective on 1 January 2013.

 

  1. Section (9) inserted by section 48 of Act 60 of 2008 effective on 1 Jan 2009.

 

  1. Section 41 amended by section 17 of Act 103 of 1976, repealed by section 25 of Act 21 of 1995, inserted by section 44 of Act 60 of 2001 and substituted by section 34 of Act 74 of 2002.

“Allowance asset” definition of section 41 of ITA

Posted on by admin_kmos

(1)     For the purposes of this Part, unless the context otherwise indicates, any word or expression that has been defined in section 1, shall bear the same meaning so defined, and-

 

‘allowance asset’ means-

 

(a)     a capital asset in respect of which a deduction or allowance is allowable in terms of this Act for purposes other than the determination of any capital gain or capital loss; or

 

(b)     any debt contemplated in section 11 (i) or (j);

“Base cost” definition of section 41 of ITA

Posted on by admin_kmos

“base cost” means the base cost as defined in paragraph 1 of the Eighth Schedule: Provided that where the base cost of an asset as at a specific date is to be determined as contemplated in paragraph 26 or 27 of the Eighth Schedule, the amount thereof must, for purposes of section 42 or 44, be determined as if that asset had been disposed of on that date for an amount received or accrued equal to the market value of that asset as at that date;

“Company” definition of section 41 of ITA

Posted on by admin_kmos

“company” does not include a headquarter company and, for the purposes of sections 42 and 44, includes any portfolio of a collective investment scheme in securities or any portfolio of a hedge fund collective investment scheme;

[Definition of “company” inserted by section 47 of Act 17 of 2009 and substituted by section 67 of Act 24 of 2011 and section 61 of Act 25 of 2015 effective on 1 April 2015]