(hB) ……….
[Paragraph (hB) inserted by section 23 of Act 31 of 2013 and deleted by section 23 of Act 15 of 2016 effective on 1 January 2017]
Author: admin_kmos
Section 10(1)(gI) of ITA
(gI) any amount received or accrued in respect of a policy of insurance relating to the death, disablement, illness or unemployment of any person who is insured in terms of that policy of insurance, including the policyholder or an employee of the policyholder in respect of that policy of insurance to the extent to which the benefits in terms of that policy are paid as a result of death, disablement, illness or unemployment other than any policy of which the benefits are paid or payable by a retirement fund;
[Paragraph (gI) inserted by section 23 of Act 31 of 2013 and substituted by section 14 of Act 43 of 2014 and section 16 of Act 25 of 2015 effective on 1 March 2015]
Section 10(1)(cQ) of ITA
(cQ) the receipts and accruals of any small business funding entity approved by the Commissioner in terms of section 30C, to the extent that the receipts and accruals are derived-
(i) otherwise than from any business undertaking or trading activity; or
(ii) from any business undertaking or trading activity-
(aa) if the undertaking or activity-
(A) is integral and directly related to the sole or principal object of that small business funding entity;
(B) is carried out or conducted on a basis substantially the whole of which is directed towards the recovery of cost; and
(C) does not result in unfair competition in relation to taxable entities;
(bb) if the undertaking or activity is of an occasional nature and undertaken substantially with assistance on a voluntary basis without compensation;
(cc) if the undertaking or activity is approved by the Minister by notice in the Gazette, having regard to-
(A) the scope and benevolent nature of the undertaking or activity;
(B) the direct connection and interrelationship of the undertaking or activity with the sole or principal object of the small business funding entity;
(C) the profitability of the undertaking or activity; and
(D) the level of economic distortion that may be caused by the tax exempt status of the small business funding entity carrying out the undertaking or activity; or
(dd) other than an undertaking or activity in respect of which item (aa), (bb) or (cc) applies and do not exceed the greater of-
(A) 5 per cent of the total receipts and accruals of that small business funding entity during the relevant year of assessment; or
(B) R200 000;
[Paragraph (cQ) inserted by section 14 of Act 43 of 2014 effective on 1 March 2015]
Section 9HA (ITA) – Disposal by deceased person
9HA. Disposal by deceased person
(1) A deceased person must be treated as having disposed of his or her assets, other than-
(a) assets disposed of for the benefit of his or her surviving spouse as contemplated in subsection (2);
[Paragraph (a) substituted by section 19 of Act 23 of 2018 effective on 17 January 2019]
(b) a long-term insurance policy of the deceased, if any capital gain or capital loss that would have been determined in respect of a disposal that resulted in proceeds of that policy being received by or accruing to the deceased would have been disregarded in terms of paragraph 55 of the Eighth Schedule; or
(c) an interest of the deceased in-
(i) a pension, pension preservation, provident, provident preservation or retirement annuity fund in the Republic; or
(ii) a fund, arrangement or instrument situated outside the Republic which provides benefits similar to a pension, pension preservation, provident, provident preservation or retirement annuity fund,
if any capital gain or capital loss that would have been determined in respect of a disposal of that interest that resulted in a lump sum benefit being received by or accruing to the deceased would have been disregarded in terms of paragraph 54 of the Eighth Schedule,
at the date of that person’s death for an amount received or accrued equal to the market value, as defined in paragraph 1 of the Eighth Schedule, of those assets as at that date.
[Subsection (1) amended by section 19(b) of Act 23 of 2018 and by section 11 of Act 34 of 2019]
(2) A deceased person must, if his or her surviving spouse is a resident, be treated-
(a) as having disposed of an asset for the benefit of that surviving spouse if that asset is acquired by that surviving spouse-
[Words preceding subparagraph (i) substituted by section 22 of Act 15 of 2016 effective on 1 March 2016, applies in respect of a person that dies on or after that date]
(i) by ab intestato or testamentary succession;
(ii) as a result of a redistribution agreement between the heirs and legatees of that person in the course of liquidation or distribution of the deceased estate of that person; or
(iii) in settlement of a claim arising under section 3 of the Matrimonial Property Act, 1984 (Act No. 88 of 1984); and
(b) as having disposed of that asset for an amount received or accrued that is equal to, in the case of—
(i) trading stock, or livestock or produce contemplated in the First Schedule, the amount that was allowed as a deduction in respect of that asset for purposes of determining that person’s taxable income, before the inclusion of any taxable capital gain, for the year of assessment ending on the date of that person’s death; or
(ii) any other asset, the base cost of that asset, as contemplated in the Eighth Schedule, as at the date of that person’s death.
[Paragraph (b) substituted by section 22(1)(b) of Act 15 of 2016 deemed effective on 1 March, 2016 and applicable in respect of a person that dies on or after that date]
(3) If any asset that is treated as having been disposed of by a deceased person as contemplated in subsection (1) is transferred directly to an heir or legatee of that person, that heir or legatee must be treated as having acquired that asset for an amount of expenditure incurred equal to the market value, as contemplated in paragraph 1 of the Eighth Schedule, of that asset as at the date of that deceased person’s death.
[Subsection (3) substituted by section 19 of Act 23 of 2018 effective on 17 January 2019]
[Section 9HA inserted by section 15 of Act 25 of 2015 effective 1 March 2016]
“Disposal” definition of section 9C of ITA
“disposal” means a disposal as defined in paragraph 1 of the Eighth Schedule;
[Definition of “disposal” inserted by section 12 of Act 25 of 2015 and substituted by section 17 of Act 23 of 2018 effective on 17 January 2019]
“Small, medium or micro-sized enterprise” definition of section 1 of ITA
“small, medium or micro-sized enterprise” means any-
(a) person that qualifies as a micro business as defined in paragraph 1 of the Sixth Schedule; or
(b) any person that is a small business corporation as defined in section 12E(4);
[Definition of “small, medium or micro-sized enterprise” inserted by section 1 of Act 43 of 2014 effecive on 1 March 2015]
“Small business funding entity” definition of section 1 of ITA
“small business funding entity” means any entity, approved by the Commissioner in terms of section 30C;
[Definition of “small business funding entity” inserted by section 1 of Act 43 of 2014 effective on 1 March 2015]
“Share Blocks Control Act” definition of section 1 of ITA
“Share Blocks Control Act” means the Share Blocks Control Act, 1980 (Act No. 59 of 1980);
[Definition of “Share Blocks Control Act” inserted by section 1 of Act 43 of 2014 effective on 20 January 2015]
“Identical share” definition of section 1 of ITA
“identical share” means in respect of a share-
(a) a share of the same class in the same company as that share; or
(b) any other share that is substituted for a listed share in terms of an arrangement that is announced and released as a corporate action as contemplated in the JSE Limited Listings Requirements in the SENS (Stock Exchange News Service) as defined in the JSE Limited Listings Requirements or a corporate action as contemplated in the listings requirements of any other exchange, licensed under the Financial Markets Act, that are substantially the same as the requirements prescribed by the JSE Limited Listings Requirements, where that corporate action complies with the applicable requirements of that exchange;
[Paragraph (b) substituted by section 5(1)(f) of Act 15 of 2016, by section 1(1)(f) of Act 23 of 2018 and by section 2(1)(d) of Act 34 of 2019]
[Definition of “identical share” inserted by section 3 of Act 25 of 2015 effective on 1 January 2016]
“Identical security” definition of section 1 of ITA
“identical security” means in respect of a listed security, as defined in the Securities Transfer Tax Act, 2007 (Act No. 25 of 2007), that is the subject of a securities lending arrangement-
(a) a security of the same class in the same company as that security; or
(b) any other security that is substituted for that listed security in terms of an arrangement that is announced and released as a corporate action as contemplated in the JSE Limited Listings Requirements in the SENS (Stock Exchange News Service) as defined in the JSE Limited Listings Requirements;
[Definition of “identical security” inserted by section 3(1)(h) of Act 25 of 2015 effective on 1 January, 2016. Paragraph (b) substituted by section 5(1)(e) of Act 15 of 2016 and by section 1(1)(d) of Act 20 of 2022]