Category: Paragraph 11 (First Schedule) – Use of livestock

Paragraph 11

 

  1. Item (c)(iii) substituted by section 41 of Act 53 of 1999, section 78 of Act 7 of 2010 effective on 1 January 2011 and section 109 of Act 31 of 2013 effective on 12 December 2013.

 

  1. Paragraph 11 substituted by section 42 of Act 101 of 1990, section 44 of Act 113 of 1993 and section 32 of Act 36 of 1996.

Paragraph 11 (First Schedule) – Use of livestock

Posted on by admin_kmos

11.     If during any year of assessment livestock or produce –

 

(a)     has been applied by the farmer for his private or domestic use or consumption;

 

(b)     has, for purposes other than that of the production to the farmer of income from sources within the Republic, been removed by him from the Republic; or

 

(c)

 

(i)      has been donated by the farmer;

 

(ii)     has been disposed of by the farmer, other than in the ordinary course of his farming operations, for a consideration less than the market value thereof;

 

(iii)    where the farmer is a company, has on or after 21 June 1993 been distributed in specie, to a holder of a share of such company; or

 

(iv)    has been applied by the farmer for any other purpose other than the disposal thereof in the ordinary course of his farming operations and under circumstances other than those contemplated in subparagraph (a) or (b) or item (i), (ii) or (iii) of this subparagraph,

 

there shall be included in the income of such farmer for that year of assessment –

 

(A)    where such livestock or produce has been applied in a manner contemplated in subparagraph (a), an amount equal to the cost price to him of such livestock or produce, or where the cost price cannot be readily determined, the market value of such livestock or produce; or

 

(B)     where such livestock or produce has been applied, disposed of or distributed in a manner contemplated in subparagraph (b) or (c), an amount equal to the market value of such livestock or produce:

 

Provided that where –

 

(a)     any livestock or produce so applied, is used or consumed by the farmer in the ordinary course of his farming operations, the amount included in his income under this paragraph shall for the purposes of this Act be deemed to be expenditure incurred in respect of the acquisition by him of such livestock or produce; or

 

(b)     the provisions of subparagraph (c) (ii) are applicable and an amount of consideration as contemplated in such subparagraph has been received by or accrued to the farmer, the amount included in his income in terms of this paragraph shall be reduced by such consideration.