‘Share Blocks Control Act’ ……….
[Definition of ‘Share Blocks Control Act’ deleted by section 91 of Act 43 of 2014 effective on 20 January 2015]
Author: admin_kmos
Sub-paragraphs 2 and 3 of paragraph 67B of Eighth Schedule
(2) This paragraph applies where a person who holds a right of use of a part of the immovable property of a share block company, which right is conferred by reason of the ownership of a share by that person in that share block company, acquires ownership of that part of immovable property from that share block company as part of any transaction in terms of which a disposal of that part of immovable property is made by that share block company.
(3) Where a person who owns a share in a share block company acquires ownership of immovable property as part of any transaction in terms of which a disposal is made by that share block company as contemplated in subparagraph (2)-
(a) the share block company must disregard any capital gain or capital loss determined in respect of that disposal; and
(b) that person must-
(i) disregard any capital gain or capital loss determined in respect of any disposal of that share as a result of that disposal; and
(ii) be treated as having-
(aa) acquired that immovable property for an amount equal to the expenditure contemplated in paragraph 20 incurred by the person in acquiring that share;
(bb) incurred the expenditure contemplated in subsubitem (aa) on the same date that the expenditure was incurred by the person in acquiring that share;
(cc) effected improvements to that immovable property for an amount equal to the expenditure contemplated in paragraph 20 incurred by that person in effecting improvements to the part of the immovable property of the share block company in respect of which the person had a right of use as a result of the ownership of that share;
(dd) incurred the expenditure contemplated in subsubitem (cc) on the same date that the expenditure was incurred by the person in effecting the improvements to the part of the immovable property of the share block company in respect of which the person had a right of use as a result of the ownership of that share;
(ee) acquired that immovable property on the date that the share was acquired by the person; and
(ff) used that immovable property in the same manner as the person used the immovable property in respect of which the person had a right of use as a result of the ownership of that share; and
(c) any valuation of that share which was done by that person within the period prescribed by paragraph 29(4) must be deemed to have been done by that person in respect of that immovable property.
“Share Blocks Control Act” definition of paragraph 67B of Eighth Schedule
‘Share Blocks Control Act’ means the Share Blocks Control Act, 1980 (Act No. 59 of 1980).
“Local currency” definition of paragraph 43 of Eighth Schedule
“local currency” means –
(a) in relation to a permanent establishment of a person, the functional currency of that permanent establishment (other than the currency of any country in the common monetary area);
(b) in relation to a headquarter company, in respect of amounts which are not attributable to a permanent establishment outside the Republic, the functional currency of that headquarter company;
(c) in relation to a domestic treasury management company, in respect of amounts which are not attributable to a permanent establishment outside the Republic, the functional currency of that domestic treasury management company;
(d) in relation to an international shipping company defined in section 12Q, in respect of amounts which are not attributable to a permanent establishment outside the Republic, the functional currency of that international shipping company; or
(e) in any other case, the currency of the Republic.
“Foreign currency” definition of paragraph 43 of Eighth Schedule
(7) For the purposes of this paragraph –
“foreign currency” means currency other than local currency; and
Practice Note 4(a) (PN4(a)) – Nominee directors: Directors’ fees
“Commencement date” definition of paragraph 37H of Eighth Schedule
“commencement date” means 1 October 1996;
“Project” definition of paragraph 37H of Eighth Schedule
“project” means a project which in the opinion of the board –
(a) represents the manufacturing of any products, goods, articles or any other things as classified in ‘Major Division 3: Manufacturing’ of the Standard Industrial Classification of all Economic Activities (Fifth Edition) issued by the Central Statistical Services in January 1993; and
(b) meets the investment requirements prescribed by the regulations under subsection (14) (a);
“Qualifying project” definition of paragraph 37H of Eighth Schedule
“qualifying project” means a project which has been approved by the board in terms of subsection (2) (a);
“Qualifying company” definition of paragraph 37H of Eighth Schedule
“qualifying company” means any company which –
(a) is incorporated on or after the commencement date;
(b) commences the carrying on of one qualifying project for the first time on or after the commencement date; and
(c) has the sole object of carrying on one qualifying project as from the date of such incorporation and which does not carry on any trade other than such qualifying project;