Category: Section 40C (ITA) – Issue of shares or granting of options for no consideration

Section 40C

 

Section 40C inserted by section 47 of Act 60 of 2008 effective on 1 January 2011, substituted by section 70 of Act 22 of 2012 effective on 1 January 2013 and amended by section 87 of Act 31 of 2013 effective on 12 December 2013.

Section 40C (ITA) – Issue of shares or granting of options for no consideration

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40C.    Issue of shares or granting of options for no consideration

Where a company issues a share or grants an option or other right in respect of the issue of a share to a person for no consideration, the expenditure actually incurred by the person to acquire that share, option or right must be deemed to be nil.

[Section 40C inserted by section 47 of Act 60 of 2008, substituted by section 70 of Act 22 of 2012, section 87 of Act 31 of 2013 and section 59 of Act 25 of 2015 effective on 8 January 2016]