Category: CHAPTER II – The Taxes (ITA)

Section 64B (ITA) – Levy and recovery of secondary tax on companies

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64B. ………

[Section 64B added by section 20 of Act 95 of 1967, substituted by section 35 of Act 89 of 1969, amended by section 20 of Act 89 of 1969, section 19 of Act 90 of 1972 and section 41 of Act 85 of 1974, substituted by section 33 of Act 94 of 1983, amended by section 7 of Act 108 of 1986, repealed by section 32 of Act 90 of 1988, inserted by section 34 of Act 113 of 1993 amended by section 12 of Act 140 of 1993, section 24 of Act 21 of 1994, section 29 of Act 21 of 1995, section 21 of Act 36 of 1996, section 13 of Act 46 of 1996, section 25 of Act 28 of 1997, section 35 of Act 53 of 1999, section 39 of Act 30 of 2000, section 42 of Act 59 of 2000, section 18 of Act 5 of 2001, section 48 of Act 60 of 2001, section 25 of Act 30 of 2002, section 36 of Act 74 of 2002, section 58 of Act 45 of 2003, section 40 of Act 32 of 2004, section 47 of Act 31 of 2005, section 32 of Act 20 of 2006, section 39 of Act 8 of 2007, section 59 of Act 35 of 2007, section 32 of Act 3 of 2008, section 55 of Act 60 of 2008, section 51 of Act 17 of 2009, section 68 of Act 7 of 2010, section 271 of Act 28 of 2011, section 81 of Act 22 of 2012, section 100 of Act 31 of 2013, repealed by section 68 of Act 43 of 2014 effective on 1 April 2017]

Section 64C (ITA) – Certain amounts distributed deemed to be dividends

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64C.    ……….

[Section 64C added by section 20 of Act 95 of 1967, amended by section 15 of Act 76 of 1968, section 36 of Act 89 of 1969, section 21 of Act 89 of 1969, section 26 of Act 88 of 1971, section 20 of Act 90 of 1972, section 42 of Act 85 of 1974, section 22 of Act 113 of 1977, section 14 of Act 104 of 1979, section 22 of Act 104 of 1980, section 24 of Act 96 of 1981, section 21 of Act 91 of 1982, section 34 of Act 94 of 1983, section 29 of Act 121 of 1984, section 18 of Act 65 of 1986, section 8 of Act 108 of 1986 and section 22 of Act 85 of 1987, repealed by section 33 of Act 90 of 1988, inserted by section 34 of Act 113 of 1993, amended by section 13 of Act 140 of 1993, section 25 of Act 21 of 1994, section 30 of Act 21 of 1995, section 22 of Act 36 of 1996, section 40 of Act 30 of 1998, section 36 of Act 53 of 1999, section 40 of Act 30 of 2000, section 43 of Act 59 of 2000, section 37 of Act 74 of 2002, section 38 of Act 12 of 2003, section 59 of Act 45 of 2003, section 41 of Act 32 of 2004, section 48 of Act 31 of 2005, section 60 of Act 35 of 2007, section 33 of Act 3 of 2008, section 52 of Act 17 of 2009, section 69 of Act 7 of 2010, section 74 of Act 24 of 2011, section 82 of Act 2 of 2012, section 101 of Act 31 of 2013, repealed by section 68 of Act 43 of 2014 effective on 1 April 2017]

Section 48B – Rates

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48B.     Rates

 

(1)     The rates of tax chargeable in terms of section 48A must be fixed annually by Parliament.

 

(2)     The rates fixed by Parliament in respect of any year of assessment continue to apply until the next such determination of rates and will be applied for the purposes of calculating the tax payable in respect of the taxable turnover of a registered micro business during the next succeeding year of assessment if, in the opinion of the Commissioner, the calculation and collection of the tax chargeable in respect of such taxable turnover cannot without the risk of loss of revenue be postponed until after the rates for that year have been determined.

“Donee” definition of section 55 of ITA

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“donee” means any beneficiary under a donation and includes, where property has been disposed of under a donation to any trustee to be administered by him for the benefit of any beneficiary, such trustee: Provided that any donations tax paid or payable by any trustee in his capacity as such may, notwithstanding anything to the contrary contained in the trust deed concerned, be recovered by him from the assets of the trust;

Section 48C – Transitional provisions

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48C.    Transitional Provisions

(1)     Where an amount-

(a)     was received by a person during a year of assessment when it was a registered micro business;

(b)     was included in that person’s taxable turnover for that year of assessment; and

(c)     accrues to that person when it is no longer a registered micro business,

that amount must not be taken into account as a receipt or accrual for purposes of determining the taxable income of that person.

(2)     Where an amount-

(a)     accrued to a person when it was a registered micro business;

(b)     would have been included in that person’s taxable turnover had it been received on the date that it accrued; and

(c)     is received by that person when it is no longer a registered micro business,

10 per cent of that amount must be included in the taxable income of that person for the year of assessment in which it is received.

[Words following paragraph (c) to be substituted by section 67 of Act 25 of 2015 effective on 1 March 2015]

(3)     Where a registered micro business is deregistered, any trading stock held and not disposed of by it as at the date with effect from which it is deregistered shall, for purposes of the application of section 22, be deemed to have been trading stock held and not disposed of by it at the beginning of the year of assessment within which that date falls.

(4)     Where in the course of a year of assessment a registered micro business is deregistered in terms of paragraph 10(2) of the Sixth Schedule and a person becomes liable for payment of tax in terms of section 5 in respect of the taxable income of that deregistered micro business, that person is exempt from any penalties for underpayment of tax for which that person, solely as a result of becoming so liable in respect of that taxable income, would otherwise become liable under the Fourth Schedule to this Act or Chapter 15 of the Tax Administration Act.

[Subsection (4) added by section 3 of Act 13 of 2017 effective on 1 March 2018, applies in respect of years of assessment commencing on or after that date]

49.  ……….

“Fair market value” definition of section 55 of ITA

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“fair market value”, means –

 

(a)     the price which could be obtained upon a sale of the property between a willing buyer and a willing seller dealing at arm’s length in an open market; or

 

(b)     in relation to immovable property on which a bona fide farming undertaking is being carried on in the Republic, the amount determined by reducing the price which could be obtained upon a sale of the property between a willing buyer and a willing seller dealing at arm’s length in an open market by 30 per cent;