1. Definitions

(1)     In this Act, unless the context otherwise indicates –

“Commissioner” means the Commissioner for the South African Revenue Service appointed in terms of section 6 of the South African Revenue Service Act, 1997 (Act No. 34 of 1997), or the Acting Commissioner designated in terms of section 7 of that Act;

 [Definition of “Commissioner” deleted by section 1 of Act 77 of 1964, inserted by section 4 of Act 106 of 1980 and substituted by section 34 of Act 34 of 1997 and section 271 of Act 28 of 2011 effective on 1 Oct 2012]

“company” includes-

(a)     any association, corporation or company (including a close corporation) incorporated or deemed to be incorporated by or under any law in force or previously in force in the Republic or in any part thereof, or any body corporate formed or established or deemed to be formed or established by or under any such law; or

(b)     any association, corporation or company incorporated under the law of any country other than the Republic or any body corporate formed or established under such law; or

(c)     any association (not being an association referred to in paragraph (a)) formed in the Republic to serve a specified purpose, beneficial to the public or a section of the public;

[Definition of “company” inserted by section 1 of Act 5 of 2001]

“date of acquisition” means –

(a)     in the case of the acquisition of property (other than the acquisition of property contemplated in paragraph (b)) by way of a transaction, the date on which the transaction was entered into, irrespective of whether the transaction was conditional or not or was entered into on behalf of a company already registered or still to be registered and, in the case of the acquisition of property otherwise than by way of a transaction, the date upon which the person who so acquired the property became entitled thereto: Provided that where property has been acquired by the exercise of an option to purchase or a right of pre-emption, the date of acquisition shall be the date upon which the option or right of pre-emption was exercised;

[Paragraph (a) amended by section 1 of Act 86 of 1987 and Proc.R11 of 1994]

(b)     in the case of the acquisition of property in terms of item 8 of Schedule 1 to the Share Blocks Control Act, 1980 (Act No. 59 of 1980), and if section 9A of this Act does not apply to that acquisition, the date of the written request referred to in subitem (1)(b) of the said item 8;

(c)     ……….

[Paragraph (c) added by section 1 of Act 86 of 1987 and deleted by Proc. R11 of 1994]

[Definition of “date of acquisition” substituted by section 4 of Act 106 of 1980]

“declared value” in relation to property means the value of the property as declared in the declaration completed in terms of section fourteen by the person who has acquired the property;

“deeds registry” includes the Mineral and Petroleum Titles Registration Office established by section 2 of the Mining Titles Registration Act, 1967 (Act No. 16 of 1967);

[Definition of “deeds registry” substituted by section 1 of Act 24 of 2011]

“fair value”–

(a)     in relation to property as defined in paragraphs (a) and (c) of the definition of “property”, means the fair market value of that property as at the date of acquisition thereof;

[Para (a) substituted by section 1 of Act 24 of 2011]

(b)     in relation to a share or member’s interest in a company as contemplated in paragraph (d) or (e) of the definition of “property”, means so much of the fair market value as at the date of acquisition of that share or member’s interest, of any property held by that company which constitutes –

(i)      residential property;

(ii)     a share or member’s interest in any company as contemplated in paragraph (d) or (e) of the definition of “property”; or

(iii)    a contingent right in property of a trust as contemplated in paragraph (f) of the definition of “property”,

(without taking into account any lease agreement, any liability in respect of any loan or any right to or an interest in the use of immovable property conferred on the owner of a share in a share block company as contemplated in section 1 of the Share Blocks Control Act, 1980 (Act No. 59 of 1980), in relation to that residential property or any residential property of any company or trust contemplated in subparagraph (ii) or (iii)), as is attributable to that share or member’s interest;

[Paragraph (b) amended by section 1 of Act 45 of 2003 and section 1 of Act 17 of 2009]

(c)     in relation to any contingent right to any property, which constitutes –

(i)      residential property;

(ii)     a share or member’s interest contemplated in paragraph (d) or (e) of the definition of “property”; or

(iii)    a contingent right in property of a trust as contemplated in paragraph (f) of the definition of “property”,

held by a discretionary trust, means the fair market value of that property (without taking into account any lease agreement or any liability in respect of any loan in relation to that residential property or any residential property of any company or trust contemplated in subparagraph (ii) or (iii)), as at the date of acquisition of that contingent right; or

[Paragraph (c) amended by section 1 of Act 17 of 2009]

(d)     in relation to a share in a company as contemplated in paragraph (g) of the definition of “property”, means so much of the fair market value, as at the date of acquisition of that share, of any property held by that company which constitutes property as contemplated in paragraphs (a) and (c) of that definition (without taking into account any lease agreement or any liability in respect of any loan in relation to that residential property) as is attributable to that share:

[Paragraph (d) inserted by section 1 of Act 17 of 2009 and substituted by section 1 of Act 24 of 2011]

 

Provided that –

(a)     the fair market value of any property of a company or a trust which constitutes a contingent right in property of a trust, as contemplated in paragraphs (b)(iii) and (c)(iii) shall be equal to the fair value of that contingent right as determined in terms of paragraph (c) of this definition; and

(b)     where property, has been acquired by the exercise of an option to purchase or a right of pre-emption, the fair value in relation to that property shall be the fair market value thereof as at the date upon which the option or right of pre-emption was acquired by the person who exercised the option or right of pre-emption;

[Definition of “fair value” substituted by section 2 of Act 74 of 2002]

“mining asset” means any building, shaft, excavation, borehole, structure, fixture or other improvement or work used or intended to be used for purposes of mining, or purposes incidental thereto, including the accommodation of mine personnel, but does not include any building or structure on land in a proclaimed township;

[Definition of “mining asset” inserted by section 11 of Act 80 of 1959]

“person” includes the estate of a deceased or insolvent person and any trust;

[Definition of “person” inserted by section 8 of Act 37 of 1996]

“property” means land in the Republic and any fixtures thereon, and includes –

(a)     any real right in land but excluding any right under a mortgage bond or a lease of property other than a lease referred to in paragraph (c);

[Paragraph (a) substituted by section 1 of Act 24 of 2011]

(b)     ……….

[Paragraph (b) deleted by section 1 of Act 24 of 2011]

(c)     any right to minerals (including any right to mine for minerals) and a lease or sub-lease of such a right;

(d)     a share (other than a share contemplated in paragraph (g)) or member’s interest in a residential property company;

[Paragraph (d) substituted by section 1 of Act 17 of 2009]

(e)     a share (other than a share contemplated in paragraph (g)) or member’s interest in a company which is a holding company (as defined in the Close Corporations Act, 1984 (Act 69 of 1984), or as defined in the Companies Act, 2008 (Act 71 of 2008), as the case may be), if that company and all of its subsidiary companies (as defined in the Close Corporations Act, 1984, or Companies Act, 2008), would be a residential property company if all such companies were regarded as a single entity;

[Paragraph (e) added by section 2(1)(b) of Act 74 of 2002 and substituted by section 1(1)(d) of Act 17 of 2009 and by section 1 of Act 16 of 2022]

(f)     a contingent right to any residential property or share or member’s interest, contemplated in paragraph (d) or (e), held by a discretionary trust (other than a special trust as defined in section 1 of the Income Tax Act, 1962 (Act No. 58 of 1962)), the acquisition of which is –

(i)      a consequence of or attendant upon the conclusion of any agreement for consideration with regard to property held by that trust;

(ii)     accompanied by the substitution or variation of that trust’s loan creditors, or by the substitution or addition of any mortgage bond or mortgage bond creditor; or

(iii)    accompanied by the change of any trustee of that trust and;

[Paragraph (f) amended by section 1 of Act 7 of 2010 effective on 1 September 2009]

(g)     a share in a share block company as defined in the Share Blocks Control Act, 1980 (Act No. 59 of 1980);

[Paragraph (g) added by section 1 of Act 17 of 2009]

[Definition of “property” amended by section 1 of Act 5 of 2001 and section 2 of Act 74 of 2002]