‘qualifying purpose’, in relation to the application of the funds derived from the issue of a preference share, means one or more of the following purposes:
[Words preceding paragraph (a) substituted by section 7 of Act 43 of 2014 effective on 1 January 2013]
(a) The direct or indirect acquisition of an equity share by any person in a company that is an operating company at the time of the receipt or accrual of any dividend or foreign dividend in respect of that preference share, other than a direct or indirect acquisition of an equity share from a company that, immediately before that acquisition, formed part of the same group of companies as the person acquiring that equity share;
[Paragraph (a) substituted by section 15 of Act 15 of 2016 effective on 1 January 2017, applies in respect of years of assessment ending on or after that date]
(b) the partial or full settlement by any person of any-
(i) debt incurred for one or more of the following purposes:
(aa) The direct or indirect acquisition of an equity share by any person in a company that is an operating company at the time of the receipt or accrual of any dividend or foreign dividend in respect of that preference share, other than a direct or indirect acquisition of an equity share from a company that, immediately before that acquisition, formed part of the same group of companies as the person acquiring that equity share;
[Item (aa) substituted by section 15 of Act 15 of 2016 effective on 1 January 2017, applies in respect of years of assessment ending on or after that date]
(bb) a direct or indirect acquisition or a redemption contemplated in paragraph (c);
(cc) the payment of any dividend or foreign dividend as contemplated in paragraph (d); or
(dd) the partial or full settlement, directly or indirectly, of any debt incurred as contemplated in item (aa), (bb) or (cc); or
(ii) interest accrued on any debt contemplated in subparagraph (i);
(c) the direct or indirect acquisition by any person or a redemption by any person of any other preference share if-
(i) that other preference share was issued for any purpose contemplated in this definition; and
(ii) the amount received by or accrued to the issuer of that preference share as consideration for the issue of that preference share does not exceed the amount outstanding in respect of that other preference share being acquired or redeemed, being the sum of-
(aa) that amount; and
(bb) any amount of dividends, foreign dividends or interest accrued in respect of that other preference share; or
(d) the payment by any person of any dividend or foreign dividend in respect of the other preference share contemplated in paragraph (c);