Category: Definitions – ITA

“Storage building” definition of section 27 of ITA

Posted on by admin_kmos

“storage building”, in relation to any agricultural co–operative, means –

 


(a)     a building which is at any relevant time or during any relevant period wholly or mainly used by such co–operative for storing or packing pastoral, agricultural or other products produced by such co–operative’s members or for carrying on therein any primary process in respect of such products; or

 

(b)     a structure of a permanent nature which is at any relevant time or during any relevant period wholly or mainly used by such co–operative in connection with the fattening of livestock on behalf of the members of such co–operative:

 

Provided that for the purposes of this definition the members of a central co–operative agricultural company or central farmers’ special co–operative company or federal co–operative agricultural company or federal farmers’ special co–operative company, as defined in the Co–operative Societies Act, 1939, shall be deemed to include the members of any agricultural co–operative which itself is a member of such company.

“Substitutive share-for-share transaction” definition of section 43 of ITA

Posted on by admin_kmos

‘substitutive share-for-share transaction’ means a transaction between a person and a company in terms of which that person disposes of an equity share in the form of a linked unit in that company and acquires an equity share other than a linked unit in that company.

[Definition of ‘substitutive share-for-share transaction’ substituted by section 92 of Act 31 of 2013 effective on 24 October 2013 – comes into operation in terms of section 92 of Act 31 of 2013 as substituted by section 124 of Act 43 of 2014] 

“Sukuk” definition of section 24JA of ITA

Posted on by admin_kmos

“sukuk” means a sharia arrangement whereby-

(a)     the government of the Republic, any public entity that is listed in Schedule 2 to the Public Finance Management Act or a listed company disposes of an interest in an asset to a trust; and

[Paragraph (a) substituted by section 42 of Act 43 of 2014 and section 45 of Act 25 of 2015 effective on1 January 2016]

(b)     the disposal of the interest in the asset to the trust by the government, the public entity or the listed company contemplated in paragraph (a) is subject to an agreement in terms of which the government, that public entity or that listed company undertakes to reacquire on a future date from that trust the interest in the asset disposed of at a cost equal to the cost paid by the trust to the government, to that public entity or to that listed company to obtain the asset.

[Paragraph (b) substituted by section 42 of Act 43 of 2014 and section 45 of Act 25 of 2015 effective on 1 January 2016]

“Tainted intellectual property” definition of section 23I of ITA

Posted on by admin_kmos

“tainted intellectual property” means intellectual property-

(a)     which was the property of the end user or of a taxable person that is or was a connected person, as defined in section 31(4), in relation to the end user;

(b)     which is the property of a taxable person;

(c)     a material part of which was used by a taxable person in carrying on a business while that property was the property of a taxable person and the end user of that property acquired that business or a material part thereof as a going concern; or

(d)     which was discovered, devised, developed, created or produced by the end user of that property, or by a taxable person that is a connected person, as defined in section 31(4), in relation to the end user, if that end user, together with any taxable person that is a connected person in relation to that end user, holds at least 20 per cent of the participation rights, as defined in section 9D, in a person by or to whom an amount is received or accrues-

(i)      by virtue of the grant of use or right of use or permission to use that property; or

[Subparagraph (i) substituted by section 36 of Act 43 of 2014 effective on 20 January 2015]

(ii)     where that receipt, accrual or amount is determined directly or indirectly with reference to expenditure incurred for the use or right of use or permission to use that property;

[Subparagraph (ii) substituted by section 36 of Act 43 of 2014 effective on 20 January 2015] 

“Tax threshold” definition of Fourth Schedule

Posted on by admin_kmos

“tax threshold” in relation to a natural person means the maximum amount of taxable income of that person in respect of a year of assessment which would result in no tax payable when the rates of tax contemplated in section 5 of this Act and the rebates contemplated in section 6 of this Act for that year of assessment are applied to the taxable income of that person;

“Taxable benefit” definition of Seventh Schedule

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“taxable benefit” means a taxable benefit contemplated in paragraph 2, whether the grant of such benefit is voluntary or otherwise, but excluding –

(a)     any benefit the amount or value of which is exempt from normal tax under the provisions of section 10 of this Act;

(b)     any benefit provided by any benefit fund in respect of medical, dental and similar services, hospital services, nursing services and medicines;

(c)     any lump sum benefit payable by a benefit fund, pension fund, pension preservation fund, provident fund, or provident preservation fund being a benefit referred to in the definition of ‘benefit fund’ in section 1 of this Act or in paragraph (i) of the proviso to paragraph (c) of the definition of ‘pension fund’ in that section or in paragraph (a) of the definition of ‘provident fund’ in that section;

(d)     any benefit or privilege received by or accrued to a person contemplated in section 9(2)(g) or (h) stationed outside the Republic which is attributable to that person’s services rendered outside the Republic; or

(e)     any severance benefit.