Author: admin_kmos

Paragraph 6 (First Schedule) – Standard value applicable to any class of livestock

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6.

 

(1)     The standard value applicable to any class of livestock shall be –

 

(a)     in the case of any farmer (other than a company or the estate of a deceased person) who on or after the first day of July, 1955, and before the first day of July, 1962, rendered returns of income in respect of farming operations, the standard value which in relation to such farmer applied to that class of livestock in accordance with the provisions of paragraph 13 of the Third Schedule to the Income Tax Act, 1941;

 

(b)     in the case of any other farmer (other than a company or the estate of a deceased person) or in the case of any farmer (other than a company or the estate of a deceased person) who on or after 1 July 1962 includes that class of livestock in his return of income for the first time, either –

 

(i)      such standard value as may be fixed for that class of livestock by regulation made under this Act; or

 

(ii)     such other standard value as the farmer may, subject to the provisions of subparagraphs (2) and (3), adopt for that class of livestock when rendering his return of income on or after the said date in respect of farming operations, or when so including in any return of income such a class of livestock for the first time;

 

(c)     in the case of any company or estate of a deceased person the return of income of which in respect of farming operations for the first year of assessment of that company or estate ending on or after 1 January 1977 includes that class of livestock, either –

 

(i)      such standard value as may be fixed for that class of livestock by regulation made under this Act; or

 

(ii)     such other standard value as such company or the executor of such estate, as the case may be, may, subject to the provisions of subparagraphs (2) and (3), adopt for that class of livestock when rendering the said return of income;

 

(d)     in the case of any company or estate of a deceased person the return of income of which in respect of farming operations for a year of assessment subsequent to the year of assessment referred to in item (c), includes that class of livestock for the first time, either –

 

(i)      such standard value as may be fixed for that class of livestock by regulation made under this Act; or

 

(ii)     such other standard value as such company or the executor of such estate, as the case may be, may subject to the provisions of subparagraphs (2) and (3), adopt for that class of livestock when rendering the said return of income.

 

(2)     No standard value adopted under subparagraph (1) (b) (ii), (1) (c) (ii) or (1) (d) (ii) in respect of any class of livestock shall be more than twenty per cent higher or lower than the standard value fixed by regulation under this Act in respect of livestock of that class.

 

(3)     Any farmer who classifies any kind of his livestock on a basis other than that applied by a regulation referred to in subparagraph (1) (b) (i), (1) (c) (i) or (1) (d) (i), may adopt in respect of any class into which he so classifies that livestock such a standard value as may be approved by the Commissioner with due regard to the values fixed by regulation.

Paragraph 5 (First Schedule) – Value to be placed on livestock for purposes of First Schedule

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5.

 

(1)     The value to be placed upon livestock for the purposes of this Schedule shall, subject to the provisions of paragraph 4 (1) as respects livestock held and not disposed of at the end of the year of assessment, be the standard value applicable to the livestock.


(2)      ……….


(3)      ……….

Paragraph 4 (First Schedule) – Deemed values of livestock or produce held and not disposed of

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4.

 

(1)     The values of livestock and produce held and not disposed of at the beginning of any year of assessment shall, subject to the provisions of sub–paragraph (2), be deemed to be –

 

(a)     in the case of a farmer who was carrying on farming operations on the last day of the year immediately preceding the year of assessment, the sum of –

 

(i)      the values of livestock and produce held and not disposed of by him at the end of the year immediately preceding the year of assessment; and

 

(ii)     the market value of livestock or produce-

 

(aa)   acquired by such farmer during the current year of assessment otherwise than by purchase or natural increase or in the ordinary course of farming operations; or

 

(bb)   held by such farmer otherwise than for purposes of pastoral, agricultural or other farming operations, which such farmer during such year of assessment commenced to hold for purposes of pastoral, agricultural or other farming operations; or

 

(b)     in the case of any person commencing or recommencing farming operations during the year of assessment, the sum of –

 

(i)      the value of any livestock or produce held and not disposed of by him at the end of the day immediately preceding the date of such commencement or recommencement; and

 

(ii)     the market value of livestock or produce (other than livestock or produce to which Subitem (i) refers)-

 

(aa)   acquired by such person during the year of assessment otherwise than by purchase or natural increase or in the ordinary course of farming operations;

 

(bb)   held by such person otherwise than for purposes of pastoral, agricultural or other farming operations, which such person during such year of assessment commenced to hold for purposes of pastoral, agricultural or other farming operations.

Paragraph 3 (First Schedule) – Livestock or produce held and not disposed of

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3.

 

(1)     Subject to the provisions of sub–paragraphs (2) and (3), the value of livestock or produce held and not disposed of at the end of the year of assessment shall be included in income for such year of assessment, and there shall be allowed as a deduction from such income the value of livestock or produce, as determined in accordance with the provisions of paragraph 4, held and not disposed of at the beginning of the year of assessment.


(2)     For the purposes of subparagraph (1), the value of livestock or produce held and not disposed of at the end of any year of assessment by any person who discontinued farming operations during such year, shall be included in his income for such year and for all subsequent years of assessment so long as such livestock or produce, or any portion thereof, is so held and not disposed of.

 

(3)     Any livestock which is the subject of any “sheep lease” or similar agreement concerning livestock, and any produce which is the subject of a similar agreement, shall be deemed to be held and not disposed of by the grantor of such lease or agreement.

Year of assessment definition for paragraph 1 of First Schedule

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(a)     a reference to a year of assessment shall in the case of any taxpayer who has under the provisions of section 66(13A) or (13C) of this Act been permitted to furnish accounts in respect of the income derived by him from pastoral, agricultural or other farming operations made up to a date other than the last day of the relevant year of assessment, be construed as a reference to the period covered by such accounts; and

[Item (a) substituted by section 78 of Act 45 of 2003 and by section 4 of Act 4 of 2026]

 

(b)     a reference to the end of a year of assessment includes, where the period assessed ends on a date other than the last day of the year of assessment, a reference to the end of that period.

Section 111 (ITA) – Repeal of laws

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111.     Repeal of laws

 

(1)     Subject to the provisions of subsection (2), the laws specified in the Third Schedule are hereby repealed to the extent set out in the third column of that Schedule: Provided that any tax or other amount which but for such repeal would have been capable of being levied, assessed or recovered and which has not been levied, assessed or recovered at the commencement of this Act, may be levied, assessed or recovered as if such repeal had not been effected HIA.

 

(2)     Any notice or proclamation issued or regulation made or anything done under any provision of a law repealed by subsection (1) shall be deemed to have been issued, made or done under the corresponding provision of this Act.

Section 108 (ITA) – Prevention of or relief from, double taxation

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108.     Prevention of or relief from, double taxation

 

(1)     The National Executive may enter into an agreement with the government of any other country, whereby arrangements are made with such government with a view to the prevention, mitigation or discontinuance of the levying, under the laws of the Republic and of such other country, of tax in respect of the same income, profits or gains, or tax imposed in respect of the same donation, or to the rendering of reciprocal assistance in the administration of and the collection of taxes under the said laws of the Republic and of such other country.

 

(2)     As soon as may be after the approval by Parliament of any such agreement, as contemplated in section 231 of the Constitution, the arrangements thereby made shall be notified by publication in the Gazette and the arrangements so notified shall thereupon have effect as if enacted in this Act.

 

(3)     ……….

 

(4)     ……….

 

(5)     The duty imposed by any law to preserve secrecy with regard to such tax shall not prevent the disclosure to any authorized officer of the country contemplated in subsection (1), of the facts, knowledge of which is necessary to enable it to be determined whether immunity, exemption or relief ought to be given or which it is necessary to disclose in order to render or receive assistance in accordance with the arrangements notified in terms of subsection (2).

 

109.  .……….

 

110.  ……….

Section 107 – Regulations

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107.     Regulations

   

(1)     The Minister of Finance may make regulations –

(a)     prescribing the duties of all persons engaged or employed in the administration of this Act;

(b)     defining the limits of areas within which such persons are to act;

(c)     prescribing the nature and contents of the accounts to be rendered by any taxpayer in support of any returns rendered under this Act and the manner in which such accounts shall be authenticated;

(d)     prescribing the method of valuation of annuities or of fiduciary, usufructuary or other limited interests in property referred to in section 62;

(e)     ……….

(f)      ……….

(g)     prescribing the information that must be contained in a report that the Commissioner must submit to the Minister, in the form and manner and at the time that the Minister may prescribe, advising the Minister of matters as the Minister may prescribe.

[Paragraph (g) inserted by section 12 of Act 14 of 2017 effective on 1 March 2017]

and generally for giving effect to the objects and purposes of this Act.

(2)     The regulations may prescribe penalties for any contravention thereof or failure to comply therewith, not exceeding a fine of R2000.

(3)     Any regulation made under the Income Tax Act, 1941, and in force at the date of commencement of this Act, shall be deemed to have been made under this Act.