Category: Definitions – ITA

“Oil and gas right” definition of Tenth Schedule

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‘oil and gas right’ means-

 

(a)     any reconnaissance permit, technical co-operation permit, exploration right, or production right as defined in section 1 of the Mineral and Petroleum Resources Development Act or any interest therein;

 

(b)     any exploration right acquired by virtue of a conversion contemplated in item 4 of Schedule II to the Mineral and Petroleum Resources Development Act or any interest therein; or

 

(c)     any production right acquired by virtue of a conversion contemplated in item 5 of Schedule II to the Mineral and Petroleum Resources Development Act or any interest therein;

“Operating company” definition of section 24O of ITA

Posted on by admin_kmos

“operating company” means a company of which-

(a)     at least 80 per cent of the aggregate amount received by or that accrued to that company during a year of assessment constitutes income in the hands of that company; and

[Paragraph (a) substituted by section 46 of Act 23 of 2018 effective on 1 January 2019, applies in respect of years of assessment ending on or after that date]

(b)     the income contemplated in paragraph (a) is derived-

(i)      from a business carried on continuously by that company; and

(ii)     in the course or furtherance of which goods or services are provided or rendered by that company for consideration.

[Subparagraph (ii) substituted by section 46 of Act 23 of 2018 effective on 1 January 2019, applies in respect of years of assessment ending on or after that date]

“Operating company” definition of section 8EA of ITA

Posted on by admin_kmos

‘operating company’ means-

(a)     any company that carries on business continuously, and in the course or furtherance of that business-

(i)      provides goods or services for consideration; or

(ii)     carries on exploration for natural resources;

[Paragraph (a) substituted by section 7 of Act 43 of 2014 effective on 1 January 2013]

(b)     any company that is a controlling group company in relation to a company contemplated in paragraph (a);or

(c)     any company that is a listed company;

“Operating lease” definition of section 23A of ITA

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“operating lease” means a lease of movable property concluded by a lessor in the ordinary course of a business (not being a banking, financial services or insurance business) of letting such property, if –

(a)     such property may be hired by members of the general public directly from that lessor in terms of such a lease, for a period of less than one month;

(b)     the cost of maintaining such property and of carrying out repairs thereto required in consequence of normal wear and tear, is borne by the lessor; and

(c)     subject to any claim that the lessor may have against the lessee by reason of the lessee’s failure to take proper care of the property, the risk of destruction or loss of or other disadvantage to such property is not assumed by the lessee;

“Option contract” definition of section 24L of ITA

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“option contract” means an agreement the effect of which is that any person acquires the option (excluding a foreign currency option contract as defined in section 24I(1)) –

 

(a)     to buy from or to sell to another person a certain quantity of corporeal or incorporeal things before or on a future date at a pre–arranged price; or

 

(b)     that an amount of money will be paid to or received from another person before or on a future date depending on whether the value or price of an asset, index, currency, rate of interest or any other factor is higher or lower before or on that future date than a pre–arranged value or price.

“Owner” definition of section 29A of ITA

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“owner”, in relation to a policy, means the person who is entitled to enforce any benefit provided for in the policy: Provided that where a policy has been –

(a)     ceded or pledged solely for the purpose of providing security for the performance of any obligation, the owner shall be the person who retains the beneficial interest in such policy; or

(b)     reinsured by one insurer with another insurer, the reinsurance policy shall be deemed to be owned by the owner of the insurance policy so insured;

“Participation rights” definition of section 9D of ITA

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“participation rights” in relation to a foreign company means –

 

(a)     the right to participate all or part of the benefits of the rights (other than voting rights) attaching to a share, or any interest of a similar nature, in that company; or

 

(b)     in the case where no person has any right in that foreign company as contemplated in paragraph (a) or no such rights can be determined for any person, the right to exercise any voting rights in that company; and

“Party” definition of section 80L of ITA

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‘party’ means any –

 

(a)     person;

 

(b)     permanent establishment in the Republic of a person who is not a resident;

 

(c)     permanent establishment outside the Republic of a person who is a resident;

 

(d)     partnership; or

 

(e)     joint venture,

 

who participates or takes part in an arrangement;