Category: Section 58 (ITA) – Property disposed of under certain transactions deemed to have been disposed of under a donation

Section 58

 

  1. Section 58 renumbered to 58(1) by section 39 of Act 32 of 2004.

 

  1. Subsection (2) added by section 39 of Act 32 of 2004 and amended by section 46 of Act 31 of 2005.

Section 58 (ITA) – Property disposed of under certain transactions deemed to have been disposed of under a donation

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58.    Property disposed of under certain transactions deemed to have been disposed of under a donation

 

(1)     Where any property has been disposed of for a consideration which, in the opinion of the Commissioner, is not an adequate consideration that property shall for the purposes of this Part be deemed to have been disposed of under a donation: Provided that in the determination of the value of such property a reduction shall be made of an amount equal to the value of the said consideration.

 

(2)     Where a person disposes of a restricted equity instrument, as defined in section 8C, under the circumstances contemplated in section 8C(5)(a) or (b), that restricted equity instrument shall for the purposes of this Part be deemed to have been donated by that person at the time that it is deemed to vest for the purposes of section 8C and to have a value equal to the fair market value of that instrument at that time: Provided that in the determination of the value of that restricted equity instrument a reduction shall be made of an amount equal to the value of any consideration in respect of that donation.