Category: Definitions – ITA

“Fair market value” definition of section 55 of ITA

Posted on by admin_kmos

“fair market value”, means –

 

(a)     the price which could be obtained upon a sale of the property between a willing buyer and a willing seller dealing at arm’s length in an open market; or

 

(b)     in relation to immovable property on which a bona fide farming undertaking is being carried on in the Republic, the amount determined by reducing the price which could be obtained upon a sale of the property between a willing buyer and a willing seller dealing at arm’s length in an open market by 30 per cent;

“Film” definition of section 12O of ITA

Posted on by admin_kmos

“film” means-

 

(a)             a feature film;

 

(b)             a documentary or documentary series; or

 

(c)             an animation,

 

conforming to the requirements stipulated by the Department of Trade and Industry in the Programme Guidelines for the South African Film and Television Production and Co-production Incentive;

“Financial asset” definition of section 24JB of ITA

Posted on by admin_kmos

‘financial asset’ means-

 

(a)     a financial asset defined in and within the scope of International Accounting Standard 32 of IFRS or any other International Accounting Standard that replaces International Accounting Standard 32; and

 

(b)     a commodity taken into account in terms of IFRS at fair value less cost to sell in profit or loss in the statement of comprehensive income;

“Financial instrument” definition of section 1 of ITA

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“financial instrument” includes –

(a)     a loan, advance, debt, bond, debenture, bill, share, promissory note, banker’s acceptance, negotiable certificate of deposit, deposit with a financial institution, a participatory interest in a portfolio of a collective investment scheme, or a similar instrument;

(b)     any repurchase or resale agreement, forward purchase arrangement, forward sale arrangement, futures contract, option contract or swap contract;

(c)     any other contractual right or obligation the value of which is determined directly or indirectly with reference to –

(i)      a debt security or equity;

(ii)     any commodity as quoted on an exchange; or

(iii)    a rate index or a specified index;

(d)     any interest-bearing arrangement;

[Paragraph (d) amended by section 1 of Act 23 of 2018 effective on 17 January 2019]

(e)     any financial arrangement based on or determined with reference to the time value of money or cash flow or the exchange or transfer of an asset; and

[Paragraph (e) amended by section 1 of Act 23 of 2018 effective on 17 January 2019]

(f)      any crypto asset;

[Definition of “financial instrument” inserted by section 6(1)(h) of Act 74 of 2002 effective on the date of promulgation of that Act, 13 December, 2002. Paragraph (f) added by section 1(1)(c) of Act 23 of 2018 and substituted by section 2(1)(c) of Act 23 of 2020]

“Financial instrument” definition of section 8E of ITA

Posted on by admin_kmos

‘financial instrument’ means any-

 

(a)     interest-bearing arrangement; or

 

(b)     financial arrangement based on or determined with reference to a specified rate of interest or the time value of money;