(2)     For the purpose of determining the taxable income derived during a year of assessment by any short-term insurer from carrying on short-term insurance business-

[Words preceding paragraph (a) substituted by section 50 of Act 23 of 2018 effective on 1 July 2018, applies to years of assessment ending on or after that date]

(a)     a premium received by or accrued to that person in respect of a short-term policy issued by that short-term insurer shall be deemed to be—

(i)      an amount equal to the sum of insurance revenue for insurance contracts and net earned premiums for investment contracts, which are determined in accordance with IFRS as reported by the insurer to shareholders in the audited financial statements, other than any reinsurance due to a cell owner as contemplated in the definition of “cell structure” in section 1 of the Insurance Act, which is included in that insurance revenue in accordance with IFRS; and

[Subparagraph (i) substituted by section 24(1)(a) of Act 42 of 2024 deemed to have come into operation on 1 January, 2023 and applicable in respect of years of assessment commencing on or after that date]

(ii)     premium income earned in relation to an investment contract entered into by a “cell captive insurer” as defined in section 1 of the Insurance Act in respect of “first party risks” as defined in that section of that Act, which does not form part of amounts contemplated in subparagraph (i);

[Paragraph (a) substituted by section 14(1)(a) of Act 20 of 2022 effective on 1 January, 2023 and applicable in respect of years of assessment commencing on or after that date]

(b)       . . . . . .

[Paragraph (b) deleted by section 14(1)(b) of Act 20 of 2022 effective on 1 January, 2023 and applicable in respect of years of assessment commencing on or after that date]

(c)     an amount of expenditure payable by that short-term insurer in respect of any claim in terms of a short-term policy-

(i)      may be deducted in terms of section 11(a) to the extent that the amount has been paid by that short-term insurer; and

(ii)     to the extent that the amount has been paid by the short-term insurer, sections 23(c) and 23H shall not apply to that expenditure; and

[Paragraph (c) amended by section 14(1)(b) of Act 20 of 2022 effective on 1 January, 2023 and applicable in respect of years of assessment commencing on or after that date]

(d)     section 23H shall not apply to expenditure (other than expenditure contemplated in paragraph (c)) incurred in respect of-

(i)      a short-term policy issued by that short-term insurer; or

(ii)      a policy of reinsurance if that short-term insurer is the holder of that policy;

[Paragraph (d) amended by section 14(1)(b) of Act 20 of 2022 effective on 1 January, 2023 and applicable in respect of years of assessment commencing on or after that date]

(e)       . . . . . .

[Subsection (2) amended by section 17 of Act 90 of 1962, by section 22 of Act 55 of 1966, by section 24 of Act 89 of 1969, by section 22 of Act 94 of 1983, by section 42(a)-(e) of Act 35 of 2007, by section 40 of Act 60 of 2008, by section 40(1)(a) of Act 17 of 2009 and by section 51(1)(a) of Act 7 of 2010, substituted by section 61(1)(b) of Act 22 of 2012 and by section 76(1)(c) of Act 31 of 2013 and amended by section 50(1)(d) of Act 23 of 2018 deemed effective on 1 July, 2018 and applicable in respect of years of assessment ending on or after that date. Paragraph (e) deleted by section 14(1)(b) of Act 20 of 2022 effective on 1 January, 2023 and applicable in respect of years of assessment commencing on or after that date]

(3)     Subject to subsection (3A) and notwithstanding section 23(e), for the purpose of determining the taxable income derived during any year of assessment by any short-term insurer from carrying on short-term insurance business, there shall be allowed as a deduction from the income of that short-term insurer an amount equal to-

(a)    the sum of liabilities for incurred claims relating to short-term insurance business in respect of the policies of the insurer, net of amounts recognised in respect of reinsurance contracts for liabilities for incurred claims; and

(b)     the liability for claims, net of amounts recognised in respect of reinsurance contracts, in relation to investment contracts entered into by a short-term insurer in the course of carrying on short-term insurance business,

which are determined in accordance with IFRS as reported by the insurer to shareholders in the audited annual financial statements: Provided that liabilities for incurred claims shall be-

(i)      increased by the amount of insurance and reinsurance receivable balances; and

(ii)     decreased by the amount of insurance and reinsurance creditor balances,

which are taken into account in the determination of the liabilities for incurred claims in accordance with IFRS as reported by the issuer to shareholders in the audited annual financial statements: Provided further that any amount that is payable to or receivable from a cell owner, referred to in the definition of “cell structure” in section 1 of the Insurance Act, which does not relate to a policy, must be disregarded.

[Subsection (3) substituted by section 21(1)(b) of Act 88 of 1971, amended by section 25(1)(c) of Act 101 of 1990, substituted by section 33(b) of Act 30 of 2000, deleted by section 42(f) of Act 35 of 2007, inserted by section 61(1)(b) of Act 22 of 2012, substituted by section 76(1)(c) of Act 31 of 2013 and by section 52(1)(d) of Act 25 of 2015, amended by section 49(1) of Act 15 of 2016 and by section 50(1)(e) of Act 23 of 2018 and substituted by section 33(1)(b) of Act 34 of 2019, by section 14(1)(c) of Act 20 of 2022 and by section 24(1)(b) of Act 42 of 2024 deemed to have come into operation on 1 January, 2023 and applicable in respect of years of assessment commencing on or after that date]

(3A)  Notwithstanding section 23(e), for the purpose of determining the taxable income derived during any year of assessment by any foreign reinsurer conducting insurance business through a branch in the Republic in terms of section 6 of the Insurance Act in respect of a branch policy, there shall be allowed as a deduction from the income of that foreign reinsurer an amount in respect of liabilities determined in accordance with the formula-

I = (L + LIC + DL) – DC + DR

in which formula-

(a)     “I” represents the amount to be determined;

(b)     “L” represents the aggregate amounts of-

(i)      insurance contract liabilities;

(ii)     investment contract liabilities; and

(iii)     reinsurance contract liabilities,

reduced by-

(aa)   insurance contract assets;

(bb)   reinsurance contract assets, and

(cc)   liability for incurred claims contemplated in paragraph (c),

the amounts of which are determined in accordance with IFRS as annually reported by the insurer to shareholders in the audited annual financial statements in respect of branch policies and in respect of subparagraphs (i), (iii), items (aa) and (bb) are limited to amounts relating to liabilities for incurred claims: Provided that any amount that is payable to or receivable from a cell owner, referred to in the definition of “cell structure” in section 1 of the Insurance Act, that does not relate to a policy, must be disregarded: Provided further that the amount may not be less than zero;

[Paragraph (b) amended by section 31(1)(a) of Act 17 of 2023 and by section 24(1)(c) of Act 42 of 2024 deemed to have come into operation on 1 January, 2023 and applicable in respect of years of assessment commencing on or after that date]

(c)     “LIC” represents the amount of the liability for incurred claims determined in accordance with IFRS 17 in respect of the policies of the insurer, net of amounts recognised in reinsurance contracts for liabilities for incurred claims, which are determined in accordance with IFRS as annually reported by the insurer to shareholders in the audited annual financial statements;

(d)     “DL” represents the amount of deferred tax liabilities, determined in accordance with IFRS as annually reported by the insurer to shareholders in the audited annual financial statements, in respect of branch policies;

(e)     “DC” represents the amount of deferred acquisition costs determined in accordance with IFRS as annually reported by the insurer to shareholders in the audited financial statements in respect of branch policies; and

f)       “DR” represents the amount of deferred revenue determined in accordance with IFRS as annually reported by the insurer to shareholders in the audited financial statements in respect of branch policies.

[Subsection (3A) inserted by section 33(1)(c) of Act 34 of 2019 and substituted by section 14(1)(d) of Act 20 of 2022 effective on 1 January, 2023 and applicable in respect of years of assessment commencing on or after that date]

(3B)

(a)     Where a person transfers short-term insurance policies as part of any short-term insurance business to another short-term insurer carrying on or to be carrying on short-term insurance business, that person may for purposes of section 11(a) deduct an amount equal to liabilities on investment contracts relating to short-term insurance business and amounts of insurance liabilities relating to premiums and claims transferred to the other short-term insurer.

(b)     An amount contemplated in paragraph (a) must be included in the income of the short-term insurer to which the liabilities were transferred as described in paragraph (a).

[Subsection (3B) inserted by section 21(1)(b) of Act 20 of 2021 effective on 1 January, 2022 and applicable in respect of years of assessment ending on or after that date]

(3C)  For the purpose of determining the taxable income derived by any short-term insurer from carrying on short-term insurance business, the short-term insurer must, in the first year of assessment commencing on or after 1 January 2023-

(a)     include in its income an amount equal to the amounts recoverable by that short-term insurer in respect of claims incurred under a short-term policy issued by that short-term insurer at the end of the latest year of assessment commencing on or after 1 January 2022, but before 1 January 2023, that has not been received by that short-term insurer by the end of that year of assessment;

[Paragraph (a) substituted by section 24(1)(d) of Act 42 of 2024 deemed to have come into operation on 1 January, 2023 and applicable in respect of years of assessment commencing on or after that date]

(b)     deduct the liabilities for remaining coverage, reduced by reinsurance, calculated for the latest year of assessment commencing on or after 1 January 2022, but before 1 January 2023, had IFRS 17 been applied at the end of that year of assessment or include in its income the liabilities for remaining coverage, net of reinsurance, calculated for the latest year of assessment commencing on or after 1 January 2022, but before 1 January 2023, had IFRS 17 been applied at the end of that year of assessment;

[Paragraph (b) substituted by section 31(1)(b) of Act 17 of 2023 and by section 24(1)(d) of Act 42 of 2024 deemed to have come into operation on 1 January, 2023 and applicable in respect of years of assessment commencing on or after that date]

(bA)  include in its income the absolute value whereby the amount of liabilities for remaining coverage is exceeded by the amount of reinsurance, calculated for the latest year of assessment commencing on or after 1 January 2022, but before 1 January 2023, had IFRS 17 been applied at the end of that year of assessment;

[Paragraph (bA) inserted by section 24(1)(e) of Act 42 of 2024 deemed to have come into operation on 1 January, 2023 and applicable in respect of years of assessment commencing on or after that date]

(c)     deduct the amounts of insurance premium or reinsurance premium debtors, reduced by amounts of reinsurance premium payable, taken into account in determining the liabilities for remaining coverage at the end of the latest year of assessment commencing on or after 1 January 2022, but before 1 January 2023, had IFRS 17 been applied at the end of that year of assessment; and

[Paragraph (c) substituted by section 24(1)(f) of Act 42 of 2024 deemed to have come into operation on 1 January, 2023 and applicable in respect of years of assessment commencing on or after that date]

(cA)  include in its income the absolute value whereby amounts of insurance premium or reinsurance premium debtors is exceeded by amounts of reinsurance premium payable, taken into account in determining the liabilities for remaining coverage at the end of the latest year of assessment commencing on or after 1 January 2022, but before 1 January 2023, had IFRS 17 been applied at the end of that year of assessment.

[Paragraph (cA) inserted by section 24(1)(g) of Act 42 of 2024 deemed to have come into operation on 1 January, 2023 and applicable in respect of years of assessment commencing on or after that date]

 [Subsection (3C) inserted by section 14(1)(e) of Act 20 of 2022 effective on 1 January, 2023 and applicable in respect of years of assessment commencing on or after that date] 

(3D)

(a)     For the purposes of determining the taxable income derived by any short-term insurer from carrying on short-term insurance business, there shall be allowed as a deduction from the income of that short-term insurer in respect of-

(i)      the first year of assessment commencing on or after 1 January 2023, 66.7 per cent of the phasing-in amount as determined under paragraph (c); and

(ii)     the second year of assessment commencing on or after 1 January 2023, 33.3 per cent of the phasing-in amount as determined under paragraph (c):

Provided that where an insurer ceases to conduct business during any year of assessment contemplated in subparagraphs (i) and (ii), the amount to be deducted in respect of the phasing-in amount in respect of that year of assessment must be nil.

(b)     For the purposes of determining the taxable income derived by any short-term insurer from carrying on any short-term insurance business, there shall be included in the income of that short-term insurer in respect of-

(i)      the first year of assessment commencing on or after 1 January 2023, 66.7 per cent of the phasing-in amount as determined under paragraph (d); and

(ii)     the second year of assessment commencing on or after 1 January 2023, 33.3 per cent of the phasing-in amount as determined under paragraph (d):

Provided that where an insurer ceases to conduct business during any year of assessment contemplated in subparagraphs (i) and (ii), the amount to be included in respect of the phasing-in amount in respect of that year of assessment must be nil.

(c)     For purposes of paragraph (a), “phasing-in amount” means the amount by which the amount of the deduction under subsection (3) or (3A), for the latest year of assessment commencing on or after 1 January 2022, but before 1 January 2023, exceeds the amount of the deductions under subsection (3) or (3A), and subsection (3C)(b) for the latest year of assessment commencing on or after 1 January 2022, but before 1 January 2023, had IFRS 17 and subsection (3) or (3A), as amended by the Taxation Laws Amendment Act, 2022, and subsection (3C)(b) been applied at the end of that year of assessment and when-

(i)

(aa)   the amount of insurance premium debtors and reinsurance premium debtors exceeds;

(bb)   the amount of reinsurance premiums payable,

other than amounts forming part of the liability for incurred claims, deduct the difference between items (aa) and (bb) at the end of the latest year of assessment commencing on or after 1 January 2022, but before 1 January 2023, had IFRS 17 been applied; or

(ii)

(aa)   the amount of reinsurance premium payable exceeds;

(bb)   the amount of insurance premium debtors and reinsurance premium debtors,

other than amounts forming part of the liability for incurred claims, add the difference between items (aa) and (bb) at the end of the latest year of assessment commencing on or after 1 January 2022, but before 1 January 2023, had IFRS 17 been applied, and add the amount determined under subsection (3C)(a).

[Paragraph (c) substituted by section 24(1)(h) of Act 42 of 2024 deemed to have come into operation on 1 January, 2023 and applicable in respect of years of assessment commencing on or after that date]

(d)     For purposes of paragraph (b), “phasing-in amount” means the amount by which the amount of the deductions under subsection (3) or (3A), and subsection (3C)(b) for the latest year of assessment commencing on or after 1 January 2022, but before 1 January 2023, had IFRS 17 and subsection (3) or (3A), as amended by the Taxation Laws Amendment Act, 2022, and subsection (3C)(b) been applied at the end of that year of assessment exceeds the amount of the deduction under subsection (3) or (3A), for the latest year of assessment commencing on or after 1 January 2022, but before 1 January 2023, and when-

(i)

(aa)   the amount of insurance premium debtors and reinsurance premium debtors exceeds;

(bb)   the amount of reinsurance premiums payable,

other than amounts forming part of the liability for incurred claims, add the difference between items (aa) and (bb), at the end of the latest year of assessment commencing on or after 1 January 2022, but before 1 January 2023, had IFRS 17 been applied; or

(ii)

(aa)   the amount of reinsurance premiums payable, exceeds,

(bb)   the amount of insurance premium debtors and reinsurance premium debtors,

other than amounts forming part of the liability for incurred claims, deduct the difference between items (aa) and (bb) at the end of the latest year of assessment commencing on or after 1 January 2022, but before 1 January 2023, had IFRS 17 been applied, and deduct the amount determined under subsection (3C)(a).

[Paragraph (d) substituted by section 24(1)(h) of Act 42 of 2024 deemed to have come into operation on 1 January, 2023 and applicable in respect of years of assessment commencing on or after that date]

 [Subsection (3D) inserted by section 14(1)(e) of Act 20 of 2022 effective on 1 January, 2023 and applicable in respect of years of assessment commencing on or after that date] 

(4)

(a)     The total of all amounts deducted from the income of a short-term insurer in respect of a year of assessment in terms of subsections (3), (3A) and (3D)(a) shall be included in the income of that short-term insurer in the immediately following year of assessment.

(b)     The amount included in the income of a short-term insurer in respect of a year of assessment in terms of subsection (3D)(b) shall be deducted from the income of that short-term insurer in the immediately following year of assessment.

[Subsection (4) amended by section 19(1) of Act 65 of 1973 and by section 33(c) and (d) of Act 30 of 2000, deleted by section 42(f) of Act 35 of 2007, inserted by section 61(1)(b) of Act 22 of 2012 and substituted by section 76(1)(c) of Act 31 of 2013, by section 21(1)(c) of Act 20 of 2021 and by section 14(1)(f) of Act 20 of 2022 effective on 1 January, 2023 and applicable in respect of years of assessment commencing on or after that date]

(5)      . . . . . .

[Subsection (5) added by section 42(g) of Act 35 of 2007, substituted by section 76(1)(c) of Act 31 of 2013 deemed effective on 1 January, 2013 and applicable in respect of years of assessment commencing on or after that date and deleted by section 61(1)(c) of Act 22 of 2012 effective on 1 January, 2014 and applicable in respect of years of assessment commencing on or after that date]

(6)       ……….

(7)     ……….

[Subsection (7) added by section 40 of Act 17 of 2009, amended by section 51 of Act 7 of 2010 and section 61 of Act 22 of 2012 and deleted by section 52 of Act 25 of 2015 effective on the date on which the Insurance Act 2016, comes into operation, 1 July 2018, and apply to years of assessment ending on or after that date]

(8)     ……….

[Subsection (8) added by section 40 of Act 17 of 2009, amended by section 61 of Act 22 of 2012 and deleted by section 52 of Act 25 of 2015 effective on the date on which the Insurance Act 2016, 1 July 2018, comes into operation and apply to years of assessment ending on or after that date]

(9)     ……….

[Subsection (9) added by section 40 of Act 17 of 2009, substituted by section 51 of Act 7 of 2010 and section 61 of Act 22 of 2012 and deleted by section 52 of Act 25 of 2015 effective on the date on which the Insurance Act 2016, comes into operation, 1 July 2018, and apply to years of assessment ending on or after that date]

(10)   ……….

[Subsection (10) added by section 40 of Act 17 of 2009 and deleted by section 52 of Act 25 of 2015 effective on the date on which the Insurance Act 2016, comes into operation, 1 July 2018, and apply to years of assessment ending on or after that date]

(11)   ……….

[Subsection (11) added by section 40 of Act 17 of 2009, and deleted by section 52 of Act 25 of 2015 effective on the date on which the Insurance Act 2016, comes into operation, 1 July 2018, and apply to years of assessment ending on or after that date]

(2)     Where-

(a)     any transaction, operation, scheme, agreement or understanding constitutes an affected transaction; and

(b)     any term or condition of that transaction, operation, scheme, agreement or understanding-

(i)      is a term or condition contemplated in paragraph (b) of the definition of ‘affected transaction’; and

(ii)     results or will result in any tax benefit being derived by a person that is a party to that transaction, operation, scheme, agreement or understanding or by any resident in relation to a controlled foreign company contemplated in subparagraph (iv) of the definition of “affected transaction”,

[Subparagraph (ii) substituted by section 31(1) of Act 23 of 2020 effective on 1 January, 2021 and applicable in respect of years of assessment commencing on or after that date]

the taxable income or tax payable by any person contemplated in paragraph (b) (ii) that derives a tax benefit contemplated in that paragraph must be calculated as if that transaction, operation, scheme, agreement or understanding had been entered into on the terms and conditions that would have existed had those persons been independent persons dealing at arm’s length.

(3)     To the extent that there is a difference between-

(a)     any amount that is, after taking subsection (2) into account, applied in the calculation of the taxable income of any resident that is a party to an affected transaction; and

(b)     any amount that would, but for subsection (2), have been applied in the calculation of the taxable income of the resident contemplated in paragraph (a),

the amount of that difference must, if that person is a resident and the other person to the affected transaction is a person as contemplated in paragraph (a)(i)(bb) or (a)(iii)(bb) of the definition of ‘affected transaction’-

(i)      if that resident is a company, be deemed to be a dividend consisting of a distribution of an asset in specie declared and paid by that resident to that other person; or

(ii)     if that resident is a person other than a company, be deemed, for purposes of Part V, to be a donation made by that resident to that other person,

[Subparagraph (ii) substituted by section 56 of Act 25 of 2015 effective on 8 January 2016]

on the last day of the period of six months following the end of the year of assessment in respect of which that adjustment is made: Provided that where the amount of that difference was prior to 1 January 2015 deemed to be a loan that constitutes an affected transaction, so much of that loan as has not been repaid before 1 January 2015 must-

(a)     if that resident is a company, be deemed to be a dividend consisting of a distribution of an asset in specie that was declared and paid by that resident to that other person; or

(b)     if that resident is a person other than a company, be deemed, for purposes of Part V, to be a donation made by that resident to that other person, on 1 January 2015.

[Words following paragraph (b) substituted by section 50 of Act 43 of 2014 effective on 1 January 2015]

(4)     For the purposes of subsection (2), where any transaction, operation, scheme, agreement or understanding has been directly or indirectly entered into or effected as contemplated in that subsection in respect of-

(a)     the granting of any financial assistance; or

(b)     intellectual property as contemplated in the definition of ‘intellectual property ‘ in section 23I(1) or knowledge,

‘connected person’ means a connected person as defined in section 1: Provided that the expression ‘and no holder of shares holds the majority voting rights in the company’ in paragraph (d)(v) of that definition must be disregarded.

(5)     Where any transaction, operation, scheme, agreement or understanding has been entered into between a headquarter company and-

(a)     any other person that is not a resident and that transaction, operation, scheme, agreement or understanding is in respect of the granting of financial assistance by that other person to that headquarter company, this section does not apply to so much of that financial assistance that is directly applied as financial assistance to any foreign company in which the headquarter company directly or indirectly (whether alone or together with any other company forming part of the same group of companies as that headquarter company) holds at least 10 per cent of the equity shares and voting rights;

(b)     any foreign company in which the headquarter company directly or indirectly (whether alone or together with any other company forming part of the same group of companies as that headquarter company) holds at least 10 per cent of the equity shares and voting rights and that transaction, operation, scheme, agreement or understanding comprises the granting of financial assistance by that headquarter company to that foreign company, this section does not apply to that financial assistance;

(c)     any other person that is not a resident and that transaction, operation, scheme, agreement or understanding is in respect of the granting of the use, right of use or permission to use any intellectual property as defined in section 23I(1) by that other person to that headquarter company, this section does not apply to the extent that the headquarter company-

(i)      grants that use, right of use or permission to use that intellectual property to any foreign company in which the headquarter company directly or indirectly (whether alone or together with any other company forming part of the same group of companies as that headquarter company) holds at least 10 per cent of the equity shares and voting rights; and

(ii)     does not make use of that intellectual property otherwise than as contemplated in subparagraph (i); or

(d)     any foreign company in which the headquarter company directly or indirectly (whether alone or together with any other company forming part of the same group of companies as that headquarter company) holds at least 10 per cent of the equity shares and voting rights and that transaction, operation, scheme, agreement or understanding comprises the granting of the use, right of use or permission to use any intellectual property as defined in section 23I(1) by that headquarter company to that foreign company, this section does not apply to that granting to that foreign company.

(6)     Where any transaction, operation, scheme, agreement or understanding that comprises the granting of-

(a)     financial assistance; or

(b)     the use, right of use or permission to use any intellectual property as defined in section 23I,

by a person that is a resident (other than a headquarter company) to a controlled foreign company in relation to that resident or in relation to a company that forms part of the same group of companies as that resident, this section must not be applied in calculating the taxable income or tax payable by that resident in respect of any amount received by or accrued to that resident in terms of that transaction, operation, scheme, agreement or understanding if-

(i)      ……….

(ii)     that controlled foreign company has a foreign business establishment as defined in section 9D(1); and

(iii)    the aggregate amount of tax payable to all spheres of government of any country other than the Republic by that controlled foreign company in respect of any foreign tax year of that controlled foreign company during which that transaction, operation, scheme, agreement or understanding exists is at least 67,5 per cent of the amount of normal tax that would have been payable in respect of any taxable income of that controlled foreign company had that controlled foreign company been a resident for that foreign tax year: Provided that the aggregate amount of tax so payable must be determined-

(aa)   after taking into account any applicable agreement for the prevention of double taxation and any credit, rebate or other right of recovery of tax from any sphere of government of any country other than the Republic; and

(bb)   after disregarding any loss in respect of a year other than that foreign tax year or from a company other than that controlled foreign company.

Paragraph (iii) amended by section 37(1)(c) of Act 34 of 2019 effective on 1 January, 2020 and applicable in respect of years of assessment ending on or after that date]

(7)     Where-

(a)     any transaction, operation, scheme, agreement or understanding has been entered into between a company that is a resident (for purposes of this subsection referred to as resident company’) or any company that forms part of the same group of companies as that resident company and any foreign company in which that resident company (whether alone or together with any other company that forms part of the same group of companies as that resident company) directly or indirectly holds in aggregate at least 10 per cent of the equity shares and voting rights and that transaction, operation, scheme, agreement or understanding comprises the granting of financial assistance that constitutes a debt owed by that foreign company to that resident company or any company that forms part of the same group of companies as that resident company;

(b)     that foreign company is not obliged to redeem that debt in full within 30 years from the date the debt is incurred;

[Paragraph (b) amended by section 50 of Act 43 of 2014 effective on 20 January 2015]

(c)     the redemption of the debt in full by the foreign company is conditional upon the market value of the assets of the foreign company not being less than the market value of the liabilities of the foreign company, and

[Paragraph (c) amended by section 50 of Act 43 of 2014 effective on 20 January 2015]

(d)     no interest accrued in respect of the debt during the year of assessment,

[Paragraph (d) added by section 50 of Act 43 of 2014 effective on 20 January 2015]

this section must not apply to that debt.