Category: Definitions – ITA

“Alternative method” definition of section 24J of ITA

Posted on by admin_kmos

“alternative method” means a method of calculating interest in relation to any class of instruments which-

(a)     is in accordance with IFRS;

(b)     is consistently applied in respect of all such instruments for all financial reporting purposes; and

(c)     method achieves a result in so far as the timing of the accrual and incurral of interest is concerned which produces substantially the same result achieved by the application of the provisions of subsections (2)(a) and (3)(a);

[Definition of “alternative method” substituted by section 43 of Act 17 of 2017 effective on 18 December 2017]

“Amalgamation transaction” definition of section 44 of ITA

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(1)       For the purposes of this section-

‘amalgamation transaction’ means any transaction-

(a)

(i)      in terms of which any company (hereinafter referred to as the ‘amalgamated company) which is a resident disposes of all of its assets (other than assets it elects to use to settle any debts incurred by it in the ordinary course of its trade and other than assets required to satisfy any reasonably anticipated liabilities to any sphere of government of any country and costs of administration relating to the liquidation or winding-up) to another company (hereinafter referred to as the ‘resultant company’) which is a resident, by means of an amalgamation, conversion or merger; and

[Subparagraph (i) substituted by section 57 of Act 43 of 2014 effective on 20 January 2015]

(ii)     as a result of which the existence of that amalgamated company will be terminated;

(b)

(i)      in terms of which an amalgamated company which is a foreign company disposes of all of its assets (other than assets it elects to use to settle any debts incurred by it in the ordinary course of its trade and other than assets required to satisfy any reasonably anticipated liabilities to any sphere of government of any country and costs of administration relating to the liquidation or winding-up) to a resultant company which is a resident, by means of an amalgamation, conversion or merger;

[Subparagraph (i) substituted by section 57 of Act 43 of 2014 effective on 20 January 2015]

(ii)     if, immediately before that transaction, any shares in that amalgamated company are held as capital assets; and

(iii)    as a result of which the existence of that amalgamated company will be terminated; or

(c)

(i)      in terms of which an amalgamated company which is a foreign company disposes of all of its assets (other than assets it elects to use to settle any debts incurred by it in the ordinary course of its trade and other than assets required to satisfy any reasonably anticipated liabilities to any sphere of government of any country and costs of administration relating to its liquidation or winding-up) to a resultant company which is a foreign company, by means of an amalgamation, conversion or merger;

[Subparagraph (ii) substituted by section 55 of Act 15 of 2016 effective on 19 January 2017]

(ii)     if-

(aa)    mmediately before that transaction-

(A)    that amalgamated company and that resultant company form part of the same group of companies (as defined in section 1);

(B)    that resultant company is a controlled foreign company in relation to any resident that is part of the group of companies contemplated in subitem (A); and

(C)    any shares in that amalgamated company that are directly or indirectly held by that resultant company are held as capital assets; and

(bb)   immediately after that transaction, more than 50 per cent of the equity shares in that resultant company are directly or indirectly held by a resident (whether alone or together with any other person that is a resident and that forms part of the same group of companies as that resident); and

(iii)    as a result of which the existence of that amalgamated company will be terminated.

“An interest” definition of paragraph 44 of Eighth Schedule

Posted on by admin_kmos

“an interest” means-

(a)     any real or statutory right; or

(b)     a share owned directly in a share block company as defined in the Share Blocks Control Act or a share or interest in a similar entity which is not a resident; or

[Paragraph (b) substituted by section 89 of Act 43 of 2014 effective on 20 January 2015]

(c)     a right of use or occupation,

but excluding –

(i)      a right under a mortgage bond; or

(ii)     a right or interest of whatever nature in a trust or an asset of a trust, other than a right of a lessee who is not a connected person in relation to that trust;

“Ancillary service” definition of section 24G of ITA

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“ancillary service” in relation to a toll road, means any –

 

(a)     vehicle service station, breakdown or repair facility;

 

(b)     shop or restaurant;

 

(c)     park, recreation or rest area;

 

(d)     emergency medical or first–aid facility;

 

(e)     hotel or other accommodation; or

 

(f)      entertainment facility,

 

or other service or facility to which persons or vehicles may gain access from the toll road;

“Annuity contract” definition of section 10A of ITA

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“annuity contract” means an agreement concluded between an insurer in the course of his insurance business and a purchaser, in terms of which –

 

(a)     the insurer agrees to pay to the purchaser or the purchaser’s spouse or surviving spouse an annuity or annuities (whether to one such person or to each of them) until the death of the annuitant or the expiry of a specified term;

 

(b)     the purchaser agrees to pay to the insurer a lump sum cash consideration for such annuity or annuities; and

 

(c)     no amounts are or will be payable by the insurer to the purchaser or any other person other than amounts payable by way of such annuity or annuities or, where an annuity is payable for a minimum term and such annuity is in the event of the death of the annuitant before the end of such term to continue to be payable to some third person for the balance of that term, amounts which may be so payable to such third person by way of such annuity,

 

but does not include any agreement for the payment by any insurer of any annuity which is under the rules of a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund payable to a member of such fund or to any other person;

“Antedated salary or pension” definition of section 7A of ITA

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(1)     For the purposes of this section –

 

“antedated salary or pension” means an amount of salary or pension which has become payable to any person under a permanent grant, made with retrospective effect, of a salary or pension or of an increase in a salary or pension, and which in terms of such grant is payable in respect of a period ending on or before the date on which the grant has become effective;