Category: Section 1 (ITA) – Interpretation

Below is a list of DELETED or REPEALED definitions for section 1 only.  For amendment details of EXISTING definitions, please review the amendment details for each individual definition in the “Options menu” of each individual definition.

Assisted gold mine

 

Definition of “assisted gold mine” inserted by section 5 of Act 76 of 1968 and deleted by section 2 of Act 141 of 1992.

 

Building society

 

Definition of “building society” inserted by section 1 of Act 108 of 1986 and deleted by section 2 of Act 3 of 2008.

 

Business day

 

Definition of “business day” inserted by section 2 of Act 113 of 1993 and deleted by section 271 of Act 28 of 2011 effective on 1 October 2012.

 

Capitalisation shares

 

Definition of “capitalization shares” inserted by section 4 of Act 85 of 1974 and deleted by section 6 of Act 7 of 2010 effective on 1 January 2011.

 

Chief Executive Officer

 

Definition of “Chief Executive Officer” inserted by section 2 of Act 36 of 1996 and deleted by section 34 of Act 34 of 1997.

 

Date of deep level production

 

Definition of “date of deep level production” deleted by section 2 of Act 3 of 2008.

 

Date of assessment

 

Definition of “date of assessment” inserted by section 4 of Act 69 of 1975 and deleted by section 271 of Act 28 of 2011 effective on 1 October 2012.

 

Dependant

 

Definition of “dependant” substituted by section 4 of Act 88 of 1971 and section 4 of Act 85 of 1974, amended by section 3 of Act 104 of 1979 and section 2 of Act 104 of 1980 and deleted by section 2 of Act 90 of 1988.

 

Designated country

 

Definition of “designated country” inserted section 6 of Act 74 of 2002 and deleted by section 12 of Act 45 of 2003.

 

Domestic company

 

Definition of “domestic company” inserted by section 4 of Act 85 of 1974 and deleted by section 2 of Act 59 of 2000.

 

Entertainment expenditure

 

Definition of “entertainment expenditure” inserted by section 2 of Act 121 of 1984 and deleted by section 2 of Act 3 of 2008.

 

Equity share capital

 

Definition of “equity share capital” substituted by section 3 of Act 8 of 2007 and substituted by the definition of “equity share” in section 6 of Act 7 of 2010 effective on 1 January 2011.

 

External company

 

Definition of “external company” inserted by section 4 of Act 85 of 1974 and deleted by section 2 of Act 59 of 2000.

 

Foreign equity instrument

 

Definition of “foreign equity instrument” inserted by section 17 of Act 60 of 2001, amended by section 6 of Act 74 of 2002 and deleted by section 4 of Act 31 of 2013 effective on 12 December 2013.

 

Government grant

 

Definition of “government grant” inserted by section 3 of Act 32 of 2005 and deleted by section 2 of Act 22 of 2012 effective on 1 January 2013.

 

Government scrapping payment

 

Definition of “government scrapping payment” inserted by section 3 of Act 20 of 2006 and deleted by section 2 of Act 22 of 2012 effective on 1 January 2013.

 

International headquarter company

 

Definition of “international headquarter company” inserted by section 2 of Act 59 of 2000 and deleted by section 12 of Act 45 of 2003.

 

Local authority

 

Definition of “local authority” amended by section 4 of Act 72 of 1963, substituted by section 5 of Act 88 of 1965 and section 2 of Act 141 of 1992 and deleted by section 3 of Act 20 of 2006.

 

Married

 

Definition of “married” deleted by section 5 of Act 5 of 2001.

 

Married person

 

Definition of “married person” substituted by section 3 of Act 90 of 1962, section 5 of Act 88 of 1965, section 4 of Act 88 of 1971 and section 4 of Act 90 of 1972, amended by section 3 of Act 104 of 1979, section 2 of Act 104 of 1980, section1 of Act 30 of 1984, section 2 of Act 90 of 1988 and section 2 of Act 70 of 1989 and deleted by section 2 of Act 21 of 1995.

 

Married woman

 

Definition of “married woman” inserted by section 2 of Act 70 of 1989, substituted by section 5 of Act 5 of 2001 and deleted by section 2 of Act 3 of 2008.

 

Mutual building society

 

Definition of “mutual building society” inserted by section 1 of Act 108 of 1986 and deleted by section 2 of Act 3 of 2008.

 

New deep level gold mine

 

Definition of “new deep level gold mine” deleted by section 2 of Act 70 of 1989.

 

New gold mine

 

Definition of “new gold mine” amended by section 4 of Act 72 of 1963 and deleted by section 2 of Act 70 of 1989.

 

Nominal value

 

Definition of “nominal value” inserted by section 4 of Act 85 of 1974 and deleted by section 6 of Act 7 of 2010 effective on 1 January 2011.

 

Other deep level gold mine

 

Definition of “other deep level gold mine” substituted by section 2 of Act 70 of 1989 and deleted by section 2 of Act 3 of 2008.

 

Post-1966 gold mine

 

Definition of “post–1966 gold mine” inserted by section 5 of Act 55 of 1966 and deleted by section 2 of Act 129 of 1991.

 

Qualifying statutory rate

 

Definition of “qualifying statutory rate” inserted by section 6 of Act 74 of 2002 and deleted by section 12 of Act 45 of 2003.

 

Scientific research

 

Definition of “scientific research” deleted by section 12 of Act 45 of 2003.

 

Secretary

 

Definition of “Secretary” inserted by section 4 of Act 90 of 1964 and deleted by section 2 of Act 104 of 1980.

 

Shareholder

 

Definition of “shareholder” substituted by section 3 of Act 90 of 1962, amended by section 2 of Act 121 of 1984, section 6 of Act 74 of 2002, section 12 of Act 45 of 2003, section 3 of Act 20 of 2006, section 3 of Act 8 of 2007 and section 6 of Act 7 of 2010 and deleted by section 7 of Act 24 of 2011 effective on 1 April 2012.

 

South African company

 

Definition of “South African company” inserted by section 4 of Act 85 of 1974, substituted by section 4 of Act 103 of 1976, section 2 of Act 96 of 1985 and section 2 of Act 36 of 1996 and deleted by section 2 of Act 59 of 2000.

 

Taxable amount

 

Definition of “taxable amount” inserted by section 4 of Act 88 of 1971 and deleted by section 2 of Act 104 of 1980.

 

Territory

 

Definition of “territory” inserted by section 6 of Act 89 of 1969, substituted by section 2 of Act 141 of 1992 and deleted by section 2 of Act 59 of 2000.

 

Other section 1 amendment details:

Section 1 renumbered to subsection 1(1) by section 271 of Act 28 of 2011 effective on 1 October 2012.

 Subsection (2) of section 1 substituted by section 271 of Act 28 of 2011 effective on 1 October 2012.

“Connected person” definition of section 1 of ITA

Posted on by admin_kmos

connected person” means –

(a)     in relation to a natural person –

(i)      any relative; and

 

(ii)     any trust (other than a portfolio of a collective investment scheme) of which such natural person or such relative is a beneficiary;

[Subparagraph (ii) substituted by section 7 of Act 17 of 2009, section 2 of Act 22 of 2012 and section 3 of Act 25 of 2015 effective on 8 January 2016]

(b)     in relation to a trust (other than a portfolio of a collective investment scheme)-

[Words preceding subparagraph (i) substituted by section 7 of Act 17 of 2009, section 2 of Act 22 of 2012 and section 3 of Act 25 of 2015 effective on 8 January 2016]

(i)      any beneficiary of such trust; and

 

(ii)     any connected person in relation to such beneficiary;

(bA)  in relation to a connected person in relation to a trust (other than a portfolio of a collective investment scheme), any other person who is a connected person in relation to such trust;

 [Paragraph (bA) inserted by section 19 of Act 30 of 98 and substituted by section 6 of Act 74 of 2002, section 7 of Act 17 of 2009, section 2 of Act 22of 2012, section 3 of Act 25 of 2015 and section 5 of Act 15 fo 2016 effective on 19 January 2017]

(c)     in relation to a member of any partnership or foreign partnership –

(i)      any other member; and

 

(ii)     any connected person in relation to any member of such partnership or foreign partnership;

(d)     in relation to a company –

(i)      any other company that would be part of the same group of companies as that company if the expression ‘at least 70 per cent of the equity shares in’ in paragraphs (a) and (b) of the definition of ‘group of companies’ in this section were replaced by the expression ‘more than 50 per cent of the equity shares or voting rights in’;

 

(ii)     ……….

 

(iii)    ……….

 

(iv)    any person, other than a company as defined in section 1 of the Companies Act that alone or together with any connected person in relation to that person, holds, directly or indirectly, at least 20 per cent of-

 

(aa)    the equity shares in the company; or

 

(bb)    the voting rights in the company;

[Subparagraph (iv) substituted by section 2(1)(a) of Act 21 of 1994, by section 2(1)(b) of Act 28 of 1997 and by section 6(1)(e) of Act 7 of 2010 and amended by section 4(1)(i) of Act 31 of 2013 and by section 4(1)(b) of Act 20 of 2021]

(v)     any other company if at least 20 per cent of the equity shares or voting rights in the company are held by that other company, and no holder of shares holds the majority voting rights in the company;

 

(vA)  any other company if such other company is managed or controlled by –

 

(aa)   any person who or which is a connected person in relation to such company; or

 

(bb)   any person who or which is a connected person in relation to a person contemplated in item (aa); and

 

(vi)    where such company is a close corporation –

(aa)   any member;

 

(bb)   any relative of such member or any trust (other than a portfolio of a collective investment scheme) which is a connected person in relation to such member; and

[Item (bb) substituted by section 7 of Act 17 of 2009, section 2 of Act 22 of 2012 and section 3 of Act 25 of 2015 effective on 8 January 2016]

 

(cc)    any other close corporation or company which is a connected person in relation to –

(i)      any member contemplated in item (aa); or

 

(ii)     the relative or trust contemplated in item (bb); and

(e)    in relation to any person who is a connected person in relation to any other person in terms of the foregoing provisions of this definition, such other person;

: Provided that for the purposes of this definition, a company includes a portfolio of a collective investment scheme.

[Proviso added by section 7 of Act 17 of 2009 and substituted by section 2 of Act 17 of 2017 effective on 18 December 2017]

“Contributed tax capital” definition of section 1 of ITA

Posted on by admin_kmos

“contributed tax capital”, in relation to a class of shares in a company, means-

[Words preceding paragraph (a) substituted by section 1 of Act 43 of 2014 effective on 20 January 2015]

(a)     in relation to a class of shares issued by a company, in the case of a foreign company that becomes a resident on or after 1 January 2011, an amount equal to the sum of-

[Words preceding subparagraph (i) substituted by section 4 of Act 31 of 2013 and section 1 of Act 43 of 2014 effective on 20 January 2015]

(i)     the market value of all the shares in that company of that class immediately before the date on which that company becomes a reside:  Provided that the market value must be reduced by an amount equal to the difference between-

(aa)   the market value of the shares held by that foreign company in; and

(bb)   an amount equal to the percentage of shares held by that foreign company in a resident company, of the aggregate contributed tax capital in respect of each class of shares of,

each resident company in which that foreign company directly holds at least 50 per cent of the equity shares or voting rights immediately before the date on which that foreign company becomes a resident;

[Subparagraph (i) amended by section 1(1)(d) of Act 43 of 2014 and by section 1(1)(a) of Act 17 of 2023 with effect from 1 January 2024 and applicable in respect of any company that becomes a resident on or after that date]

(ii)     the consideration received by or accrued to that company for the issue of shares of that class on or after the date on which that company becomes a resident; and

[Subparagraph (ii) amended by section 1 of Act 43 of 2014 effective on 20 January 2015]

(iii)    if the shares of that class include or consist of shares that were converted from another class of shares of that company to that class of shares-

(aa)   any consideration received by or accrued to that company in respect of that conversion; and

(bb)   the amount contemplated in subparagraph (cc) that was determined in respect of shares of the other class of shares that were so converted,

[Subparagraph (iii) added by section 1 of Act 43 of 2014 effective on 20 January 2015]

reduced by so much of that amount as –

(aa)   the company has transferred on or after the date on which the company becomes a resident for the benefit of any person holding a share in that company of that class in respect of that share;

[Subparagraph (aa) substituted by section 1 of Act 43 of 2014 effective on 20 January 2015]

(bb)   has by the date of the transfer been determined by the directors of the company or by some other person or body of persons with comparable authority to be an amount so transferred; and

[Subparagraph (bb) substituted by section 1 of Act 43 of 2014 effective on 20 January 2015]

(cc)   in the case of a convertible class of shares some of the shares of which have been converted to another class of shares, so much of the amount contemplated in this paragraph in respect of that convertible class of shares immediately prior to that conversion as bears to that amount the same ratio as the number of shares so converted bears to the total number of that convertible class of shares prior to that conversion; or

[Subparagraph (cc) added by section 1 of Act 43 of 2014 effective on 20 January 2015]

(b)     in relation to a class of shares issued by a company, in the case of any other company, an amount equal to the sum of-

[Words preceding subparagraph (i) substituted by section 1 of Act 43 of 2014 effective on 20 January 2015]

(i)      the stated capital or share capital and share premium of that company immediately before 1 January 2011 in relation to shares in that company of that class issued by that company before that date, less so much of that stated capital or share capital and share premium as would have constituted a dividend, as defined before that date, had that stated capital or share capital and share premium been distributed by that company immediately before that date;

[Subparagraph (i) amended by section 1 of Act 43 of 2014 effective on 20 January 2015]

(ii)     the consideration received by or accrued to that company for the issue of shares of that class on or after 1 January 2011; and

[Subparagraph (ii) amended by section 1 of Act 43 of 2014 effective on 20 January 2015]

(iii)     if the shares of that class include or consist of shares that were converted from another class of shares of that company to that class of shares-

(aa)   any consideration received by or accrued to that company in respect of that conversion; and

(bb)   the amount contemplated in subparagraph (cc) that was determined in respect of shares of the other class of shares that were so converted,

[Subparagraph (iii) added by section 1 of Act 43 of 2014 effective on 20 January 2015]

reduced by so much of that amount as –

(aa)   the company has transferred on or after 1 January 2011 for the benefit of any person holding a share in that company of that class in respect of that share;

[Subparagraph (aa) substituted by section 1 of Act 43 of 2014 effective on 20 January 2015]

(bb)   has by the date of the transfer been determined by the directors of the company or by some other person or body of persons with comparable authority to be an amount so transferred; and

[Subparagraph (bb) substituted by section 1 of Act 43 of 2014 effective on 20 January 2015]

(cc)   in the case of a convertible class of shares some of the shares of which have been converted to another class of shares, so much of the amount contemplated in this paragraph in respect of that convertible class of shares immediately prior to that conversion as bears to that amount the same ratio as the number of shares so converted bears to the total number of that convertible class of shares prior to that conversion:

[Subparagraph (cc) added by section 1 of Act 43 of 2014 effective on 20 January 2015]

Provided that the amount transferred by a company as contemplated in paragraph (a) or (b) for the benefit of a person holding shares of any class of shares of that company must not exceed an amount that bears to the total of the amount of contributed tax capital attributable to that class of shares immediately before the transfer the same ratio as the number of shares of that class held by that person bears to the total number of shares of that class: Provided further that an amount transferred by a company as contemplated in paragraph (a) or (b) must comprise a transfer of contributed tax capital only where-

(i)     the shares in a class of shares, in respect of which—

(aa)   a distribution is made; or

(bb)   consideration for the acquisition, cancellation or redemption is paid or payable by that company,

are each transferred an equal amount of contributed tax capital in respect of that class of shares; and

(ii)     the amount of that transfer per share does not exceed the total amount of contributed tax capital in respect of that class of shares divided by the total number of issued shares within that class of shares;

[Definition of “contributed tax capital” inserted by section 4(1)(b) of Act 60 of 2008, amended by section 7(1)(g) of Act 17 of 2009, substituted by section 6(1)(f) of Act 7 of 2010 and by section 7(1)(b) and (c) of Act 24 of 2011 and amended by section 1(1)(b) of Act 43 of 2014 and by section 4(1)(c) of Act 20 of 2021 (as substituted by section 41(1) of Act 20 of 2022, deemed to have come into operation on 19 January 2022) effective on 1 January 2023]

“Depreciable asset” definition of section 1 of ITA

Posted on by admin_kmos

“depreciable asset” means an asset as defined in paragraph 1 of the Eighth Schedule (other than any trading stock and any debt), in respect of which a deduction or allowance determined wholly or party with reference to the cost or value of that asset is allowable in terms of this Act for purposes other than the determination of any capital gain or capital loss;