Category: Definitions – ITA

“Qualifying medical expenses” definition of section 6B of ITA

Posted on by admin_kmos

‘qualifying medical expenses’ means-

 

(a)     any amounts (other than amounts recoverable by a person or his or her spouse) which were paid by the person during the year of assessment to any duly registered-

 

(i)      medical practitioner, dentist, optometrist, homeopath, naturopath, osteopath, herbalist, physiotherapist, chiropractor or orthopedist for professional services rendered or medicines supplied to the person or any dependant of the person;

 

(ii)     nursing home or hospital or any duly registered or enrolled nurse, midwife or nursing assistant (or to any nursing agency in respect of the services of such a nurse, midwife or nursing assistant) in respect of the illness or confinement of the person or any dependant of the person; or

 

(iii)    pharmacist for medicines supplied on the prescription of any person mentioned in subparagraph (i) for the person or any dependant of the person;

  

(b)     any amounts (other than amounts recoverable by a person or his or her spouse) which were paid by the person during the year of assessment in respect of expenditure incurred outside the Republic on services rendered or medicines supplied to the person or any dependant of the person, and which are substantially similar to the services and medicines contemplated in   paragraph (a); and

  

(c)     any expenditure that is prescribed by the Commissioner (other than expenditure recoverable by a person or his or her spouse) necessarily incurred and paid by the person during the year of assessment in consequence of any physical impairment or disability suffered by the person or any dependant of the person.

“Qualifying purpose” definition of section 8EA of ITA

Posted on by admin_kmos

‘qualifying purpose’, in relation to the application of the funds derived from the issue of a preference share, means one or more of the following purposes:

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

(a)     The direct or indirect acquisition of an equity share by any person in a company that is an operating company at the time of the receipt or accrual of any dividend or foreign dividend in respect of that preference share, other than a direct or indirect acquisition of an equity share from a company that, immediately before that acquisition, formed part of the same group of companies as the person acquiring that equity share;

[Paragraph (a) substituted  by section 15 of Act 15 of 2016 effective on 1 January 2017, applies in respect of years of assessment ending on or after that date]

(b)     the partial or full settlement by any person of any-

(i)      debt incurred for one or more of the following purposes:

(aa)    The direct or indirect acquisition of an equity share by any person in a company that is an operating company at the time of the receipt or accrual of any dividend or foreign dividend in respect of that preference share, other than a direct or indirect acquisition of an equity share from a company that, immediately before that acquisition, formed part of the same group of companies as the person acquiring that equity share;

[Item (aa) substituted by section 15 of Act 15 of 2016 effective on 1 January 2017, applies in respect of years of assessment ending on or after that date]

 

 (bb)   a direct or indirect acquisition or a redemption contemplated in paragraph (c);

 

 (cc)   the payment of any dividend or foreign dividend as contemplated in paragraph (d); or

 

(dd)   the partial or full settlement, directly or indirectly, of any debt incurred as contemplated in item (aa), (bb) or (cc); or

(ii)     interest accrued on any debt contemplated in subparagraph (i);

(c)     the direct or indirect acquisition by any person or a redemption by any person of any other preference share if-

(i)   that other preference share was issued for any purpose contemplated in this definition; and

(ii)     the amount received by or accrued to the issuer of that preference share as consideration for the issue of that preference share does not exceed the amount outstanding in respect of that other preference share being acquired or redeemed, being the sum of-

 

(aa)   that amount; and

(bb)   any amount of dividends, foreign dividends or interest accrued in respect of that other preference share; or

(d)     the payment by any person of any dividend or foreign dividend in respect of the other preference share contemplated in paragraph (c);

“Qualifying share” definition of section 12J of ITA

Posted on by admin_kmos

“qualifying share” means an equity share held by a venture capital company which is issued to that company by a qualifying company, and does not include any share which-

(b)     would have constituted a hybrid equity instrument, as defined in section 8E(1), but for the three-year period requirement contemplated in paragraph (b)(i) of the definition of “hybrid equity instrument” in that section; or

[Paragraph (b) substituted by section 29 of Act 23 of 2018 effective on 1 January 2019 applies in respect of years of assessment commencing on or after that date]

(c)     constitutes a third-party backed share as defined in section 8EA(1);

“Qualifying share” definition of section 9C of ITA

Posted on by admin_kmos

“qualifying share”……….

[Definition of “qualifying share” substituted by section 7 of Act 3 of 2008, amended by section 11 of Act 43 of 2014 and deleted by section 12 of Act 25 of 2015 effective on 1 January 2016]

“Qualifying turnover” definition of Sixth Schedule

Posted on by admin_kmos

‘qualifying turnover’ means the total receipts from carrying on business activities, excluding any-

               

(a)     amount of a capital nature; and

(b)     amount exempt from normal tax in terms of section 10(1)(zK) or 12P;

[Paragraph (b) substituted by section 88 of Act 25 of 2015 and section 64 of Act 15 of 2016 effective on 19 January 2017]

“Realisation year” definition of section 24JB of ITA

Posted on by admin_kmos

‘realisation year’, in relation to a person, means-

 

(a)     where that person is a covered person, the year of assessment of that person immediately preceding the year of assessment ending on or after 1 January 2014; or

 

(b)     where that person becomes a covered person during any year of assessment ending after 1 January 2014, the year of assessment of that person that precedes the first year of assessment of that person in which that person becomes a covered person;

“Realised” definition of section 24I of ITA

Posted on by admin_kmos

“realised” means, in relation to an exchange item, where such exchange item is –

 

(a)     a debt in any foreign currency, when and to the extent to which payment is received or made in respect of such debt, or when and to the extent to which debt is settled or disposed of in any other manner;

 

(b)     a forward exchange contract, when payment is received or made in respect of such forward exchange contract;

 

(c)     a foreign currency option contract, when payment is received or made in respect of the right in terms of such foreign currency option contract having been exercised, or when such foreign currency option contract expires without such right having been exercised, or when such foreign currency option contract is disposed of; or

 

(d)     an amount which constitutes a unit of currency, when that amount is disposed of;

“Recognised exchange” definition of Eighth Schedule

Posted on by admin_kmos

“recognised exchange” means-

(a)     an exchange licensed under the Financial Markets Act; or

[Paragraph (a) substituted by section 51 of Act 32 of 2004, amended by section 63 of Act 31 of 2005 and substituted by section 78 of Act 43 of 2014 effective on 3 June 2013]

(b)     ……….

(c)     an exchange in a country other than the Republic which is similar to an exchange contemplated in paragraph (a) and which has been recognised by the Minister for purposes of this Schedule by notice in the Gazette;

“Recreational club” definition of section 30A of ITA

Posted on by admin_kmos

(1)     For purposes of this Act, “recreational club” means any non-profit company as defined in section 1 of the Companies Act, society or other association of which the sole or principal object is to provide social and recreational amenities or facilities for the members of that company, society or other association.