8. Valuation of consideration payable by way of rent, royalty, share of profits or any other periodical payment, or otherwise than in cash

 

Where the whole or any part of the consideration in respect of the acquisition of any property is payable by way of rent, royalty, share of profits or any other periodical payment, or otherwise than in cash, the value of the consideration so payable shall, for the purpose of the payment of the duty, be –

 

(a)     where the consideration is in the form of rent, royalty, share of profits, or any other periodical payment –

(i)      if the actual amounts of the periodical payments are fixed, the aggregate of the said amounts payable over the period (including renewal periods) for which the property has been acquired by the person liable to pay the duty or, where the property acquired is a lease or sub-lease and the said aggregate amount exceeds the fair value as determined by the Commissioner mutatis mutandis in accordance with the provisions of subsection (7) of section 5 of the property which is the subject of the lease or sub-lease, such fair value;

(ii)     if the actual amounts of the periodical payments are not fixed or if the property has been acquired for an indefinite or unlimited period or for the natural life of any person, a value which the Commissioner considers fair in the circumstances;

(b)     where the consideration is in the form of goods, services, rights or privileges, the current market value of such goods, services, rights or privileges at the date of the transaction or, where the market value of such goods, services, rights or privileges as at the date of the transaction is not ascertainable, a value which the Commissioner considers fair in the circumstances;

(c)     where the consideration is in the form of shares in or other securities of a company, whether already registered or still to be registered, or is in the form of rights to acquire such shares or securities, the value of such shares or securities or rights thereto, which value shall –

(i)      in the case of shares or securities which are quoted on any recognized stock exchange on the date of the transaction, be their middle market price on that date; or

(ii)     in the case of other shares or securities or rights thereto, be a value which the Commissioner considers fair in the circumstances;

(d)     where the consideration is in the form of a member’s interest in a close corporation, whether already registered or still to be registered, such value which the Commissioner considers fair in the circumstances.

[Paragraph (d) added by section 2 of Act 81 of 1985]