13.

 

(1)     If-

 

(a)     any farmer-

 

(i)      has in any year of assessment sold livestock on account of drought, stock disease or damage to grazing by fire or plague; and

 

(ii)     has within four years after the close of the said year of assessment purchased livestock to replace the livestock so sold; or

 

(b)     any farmer-

 

(i)      has in any year of assessment (other than a year of assessment in respect of which the normal tax chargeable in the case of such farmer is required to be determined under paragraph 19) sold livestock by reason of his participation in a livestock reduction scheme organised by the Government; and

 

(ii)     has within nine years after the close of the said year of assessment purchased livestock to replace the livestock so sold,

 

the cost of the livestock so purchased shall, notwithstanding anything in this Schedule contained, be allowed, at the option of such farmer, as a deduction in the determination of his taxable income for the year of assessment during which the livestock was so sold, provided the claim for such deduction is made within five years after the close of that year of assessment in the case of a farmer referred to in item (a), or within ten years after the close of that year of assessment in the case of a farmer referred to in item (b).

[Subparagraph (1) amended by section 17 of Act 101 of 1978 and substituted by section 79 of Act 25 of 2015 effective on 8 January 2016]

 

(2)     The cost of livestock so allowed as a deduction shall not be allowed as a deduction in the year of assessment in which the purchases were made.

 

(3)     Every farmer who desires to claim a deduction in terms of subparagraph (1), shall for the year of assessment in which he or she sold livestock on account of conditions of drought or stock disease or by reason of his or her participation in a livestock reduction scheme organised by the Government notify the Commissioner accordingly in such form and within such time as may be prescribed and obtain and retain full particulars in regard to the livestock so sold.

[Subparagraph (3) substituted by section 271 of Act 28 of 2011 and section 79 of Act 25 of 2015 effective on 8 January 2016]

 

(4)     ……….

[Subparagraph (4) deleted by section 25 of 2015 effective on 8 January 2016]

 

(5)     The provisions of this paragraph shall not apply to the cost of any livestock purchased to replace livestock sold if the proceeds derived from the sale of such last–mentioned livestock have been dealt with under the provisions of paragraph 13A.

 

(6)     The Commissioner may, notwithstanding the provisions of sections 93, 99(1) and 100 of the Tax Administration Act, raise an assessment for any year of assessment with respect to which a deduction in terms of subparagraph (1) is allowed.

[Subparagraph (6) added by section 5 of Act 21 of 2021 and substituted by section 12 of Act 18 of 2023]

 

(7)     Where a deduction in terms of subparagraph (1)(a) or (b) may be claimed in respect of a year of assessment, the period prescribed under section 29(3) of the Tax Administration Act after which records, books of account or documents need not be retained shall be extended to six years or eleven years respectively for such year of assessment.

[Subparagraph (7) added by section 5 of Act 21 of 2021]

 

(8)     Where a deduction in terms of subparagraph (1)(b) may be claimed in a year of assessment, the period prescribed under section 97(4) of the Tax Administration Act after which a record of assessment may be destroyed shall be extended to eleven years for such year of assessment.

[Paragraph 13 substituted by section 21(1) of Act 90 of 1972. Subparagraph (8) added by section 5 of Act 21 of 2021]