8A.      Sharia compliant financing arrangements

(1)     In the case of any murabaha as defined in section 24JA(1) of the Income Tax Act, 1962 (Act No. 58 of 1962)-

(a)     the financier shall be deemed not to have acquired any beneficial ownership of the security under the sharia arrangement; and

(b)     the client shall be deemed to have acquired beneficial ownership of the security from the seller-

(i)      for an amount equal to the consideration paid by the financier to the seller; and

(ii)     at such time as the financier acquired the beneficial ownership of the security from the seller by virtue of the transaction between the seller and the financier.

[Section 8A inserted by section 128 of Act 7 of 2010 effective on 1 January 2013 and substituted by section 149 of Act 24 of 2011 effective on 1 January 2013]