“market value” means market value as contemplated in paragraph 31;
[Definition of “market value” inserted by section 73(b) of Act 23 of 2018 and substituted and by section 53 of Act 34 of 2019]
Author: admin_kmos
“Preference share” definition of section 22B of ITA
“preference share” means a preference share as defined in section 8EA(1); and
[Definition of “preference share” inserted by section 38(1)(c) of Act 23 of 2018 and amended by section 25(1)(b) of Act 34 of 2019]
“Deferral transaction” definition of section 22B of ITA
‘deferral transaction’ means a transaction in respect of which the provisions of PART III of this Chapter were applied;
[Definition of ‘deferral transaction’ inserted by section 38 of Act 23 of 2018 effective on 1 January 2019 and applies in respect of disposals on or after that date]
“Market value” definition of section 19 of ITA
‘market value’, in relation to shares acquired or held by reason or as a result of implementing a concession or compromise in respect of a debt, means the market value of those shares immediately after the implementation of that concession or compromise.
[Definition of “market value” inserted by section 36 of Act 23 of 2018 effective on 1 January 2018, applies in respect of years of assessment commencing on or after that date]
Section 9J (ITA) – Interest of non-resident persons in immovable property
9J. Interest of non-resident persons in immovable property
(1) Any amount received or accrued in respect of the disposal by a person of trading stock consisting of-
(a) immovable property situated in the Republic held by that person; or
(b) any interest or right of whatever nature of that person to or in immovable property situated in the Republic,
shall be an amount received or accrued from a source within the Republic.
(2) For purposes of subsection (1), any interest or right in immovable property situated in the Republic includes-
(a) rights to variable or fixed payments as consideration for the working of, or the right to work mineral deposits, sources and other natural resources; or
(b) any equity shares held by a person in a company or ownership or the right to ownership of a person in any other entity or a vested interest of a person in any assets of any trust, if-
(i) 80 per cent or more of the market value of those equity shares, ownership or right to ownership or vested interest, as the case may be, at the time of disposal thereof is attributable directly or indirectly to immovable property situated in the Republic or any interest or right of whatever nature in or to immovable property situated in the Republic including rights to variable or fixed payments as consideration for the working of, or the right to work mineral deposits, sources and other natural resources in the Republic; and
[Subparagraph (i) substituted by section 8 of Act 23 of 2020]
(ii) in the case of a company or other entity, that person (whether alone or together with any connected person in relation to that person), directly or indirectly, holds at least 20 per cent of the equity shares in that company or ownership or right to ownership of that other entity.
[Section 9J inserted by section 21 of Act 23 of 2018 effective on 17 January 2019]
Section 9HB (ITA) – Transfer of asset between spouses
9HB. Transfer of asset between spouses
(1)
(a) A person (hereinafter referred to as ‘the transferor’) must disregard any capital gain or capital loss determined in respect of the disposal of an asset to his or her spouse (hereinafter referred to as ‘the transferee’).
(b) The transferee must be treated as having-
(i) acquired the asset on the same date that such asset was acquired by the transferor;
[Subparagraph (i) substituted by section 12(1) of Act 34 of 2019 deemed effective on 17 January, 2019]
(ii) incurred an amount of expenditure equal to the expenditure contemplated in paragraph 20 of the Eighth Schedule that was incurred by that transferor in respect of that asset;
(iii) incurred that expenditure on the same date and in the same currency that it was incurred by the transferor;
(iv) used that asset in the same manner that it was used by the transferor; and
(v) received an amount equal to any amount received by or accrued to that transferor in respect of that asset that would have constituted proceeds on disposal of that asset had that transferor disposed of it to a person other than the transferee.
(2) For the purposes of subsection (1)-
(a) a person whose spouse dies must be treated as having disposed of an asset to that spouse immediately before the date of death of that spouse, if ownership of that asset is acquired by the deceased estate of that spouse in settlement of a claim arising under section 3 of the Matrimonial Property Act, 1984 (Act No. 88 of 1984); or
(b) a person must be treated as having disposed of an asset to his or her spouse, if that asset is transferred to that spouse in consequence of a divorce order or, in the case of a union contemplated in paragraph (b) or (c) of the definition of ‘spouse’ in section 1, an agreement of division of assets which has been made an order of court.
(3) A person who disposes of an asset consisting of trading stock, livestock or produce contemplated in the First Schedule to his or her spouse, must be treated as having disposed of that asset for an amount received or accrued that is equal to 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.
(4) Where a person acquires an asset consisting of trading stock, livestock or produce contemplated in the First Schedule from his or her spouse, that person and his or her spouse must, for purposes of determining any taxable income derived by that person, be deemed to be one and the same person with respect to the date of acquisition of that asset by that person and the amount and date of incurral by that spouse of any cost or expenditure incurred in respect of that asset as contemplated in section 11(a) or 22(1) or (2).
(5) This section must not apply in respect of the disposal of an asset by a person to his or her spouse who is not a resident, unless the asset disposed of is an asset contemplated in section 9J or in paragraph 2(1)(b) of the Eighth Schedule.
[Section 9HB inserted by section 20 of Act 23 of 2018 effective on 17 January 2019]
Section 7F (ITA) – Deduction of interest to SARS
7F. Deduction of interest repaid to SARS
In determining the taxable income derived by any person during a year of assessment, any amount of interest paid by SARS to that person under a tax Act and deemed to have accrued to that person in terms of section 7E that has to be repaid by that person to SARS, to the extent that the amount of interest is or was included in the taxable income of that person, must be deducted from that person’s income in the year of assessment during which that amount is repaid to SARS.
[Section 7F inserted by section 11(1) of Act 23 of 2018 and substituted by section 5 of Act 34 of 2019]
“Financial Sector Conduct Authority” definition of section 1 of ITA
“Financial Sector Conduct Authority” means the Financial Sector Conduct Authority as defined in section 1 of the Financial Sector Regulation Act;
[Definition of “Financial Sector Conduct Authority” inserted by section 1 of Act 23 of 2018 effective on 1 April 2018]
“Financial Sector Regulation Act” definition of section 1 of ITA
“Financial Sector Regulation Act” means the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017);
[Definition of “Financial Sector Regulation Act” inserted by section 1 of Act 23 of 2018 effective on 1 April 2018]
Subsection 2 to 6 of section 89quat of ITA
(2) If the taxable income of any provisional taxpayer as finally determined for any year of assessment exceeds –
(a) R20 000 in the case of a company; or
(b) R50 000 in the case of any person other than a company,
and the normal tax payable by him in respect of such taxable income exceeds the credit amount in relation to such year, interest shall, subject to the provisions of subsection (3), be payable by the taxpayer at the prescribed rate on the amount by which such normal tax exceeds the credit amount, such interest being calculated from the effective date in relation to the said year until the date of assessment of such normal tax.
(3) Where the Commissioner having regard to the circumstances of the case is satisfied that the interest payable in terms of subsection (2) is a result of circumstances beyond the control of the taxpayer, the Commissioner may direct that interest shall not be paid in whole or in part by the taxpayer.
(3A) Where any natural person has, in respect of the year of assessment during which he for the first time became a provisional taxpayer, become liable for the payment of interest under subsection (2), the Commissioner may, subject to the provisions of section 103(6), if he is satisfied that the circumstances warrant such action, direct that interest shall not be paid by such person in respect of such year of assessment.
(4) If in the case of any provisional taxpayer the credit amount in relation to any year of assessment exceeds the normal tax payable in respect of his taxable income as finally determined for that year and –
(a) the amount of that excess exceeds R10 000; or
(b) such taxable income exceeds –
(i) R20 000 in the case of a company; or
(ii) R50 000 in the case of any person other than a company,
interest shall be payable to the taxpayer at the prescribed rate on the difference between the credit amount and such normal tax, such interest being calculated from the effective date in relation to the said year until the date on which such difference is refunded to the taxpayer: Provided that where any interest is payable to the taxpayer on any amount in respect of any period in terms of the provisions of section 88, no interest shall be payable to the taxpayer in terms of the provisions of this subsection in respect of the said amount and period.
(5) ……….
(6) The payment by the Commissioner of any interest under the provisions of this section shall be deemed to be a drawback from revenue charged to the National Revenue Fund.