Category: Paragraph 13 (Eighth Schedule) – Time of disposal

Paragraph 13

 

  1. Subitem (1)(a)(iiA) inserted by section. 76 of Act 60 of 2008.

 

  1. Subitem (1)(a)(viii) substituted by section 57 of Act 32 of 2004.

 

  1. Item (1)(a) amended by section 69 of Act 74 of 2002.

 

  1. Item (1)(d) deleted by section 76 of Act 60 of 2008.

 

  1. Item (1)(e) substituted by section 128 of Act 31 of 2013 effective on 12 December 2013.

 

  1. Subitem (1)(g)(i) substituted by section 51 of Act 3 of 2008 and section 68 of Act 17 of 2009.

 

  1. Subitem (1)(g)(ii) substituted by section 109 of Act 22 of 2012 effective on 1 January 2013.

 

  1. Item (g) amended by section 69 of Act 74 of 2002.

 

  1. Subparagraph (1) amended by section 69 of Act 74 of 2002.

Paragraph 13 (Eighth Schedule) – Time of disposal

Posted on by admin_kmos

13.     Time of disposal

(1)     The time of disposal of an asset by means of-

(a)     a change of ownership effected or to be effected from one person to another because of an event, act, forbearance or by operation of law is, in the case of-

(i)      an agreement subject to a suspensive condition, the date on which the condition is satisfied;

(ii)     any agreement which is not subject to a suspensive condition, the date on which the agreement is concluded;

(iiA)  the distribution of an asset of a trust by a trustee to a beneficiary to the extent that the beneficiary has a vested interest in the asset, the date on which the interest vests;

(iiB)  the granting by a trust to a beneficiary of an equity instrument contemplated in section 8C, the time that equity instrument vests in that beneficiary as contemplated in that section;

[Subitem (iiB) inserted by section 107 of Act 25 of 2015 effective on 1 March 2016]

(iii)    a donation of an asset, the date of compliance with all legal requirements for a valid donation;

(iv)    the expropriation of an asset, the date on which the person receives the full compensation agreed to or finally determined by a competent tribunal or court;

(v)     the conversion of an asset, the date on which that asset is converted;

(vi)    the granting, renewal or extension of an option, the date on which the option is granted, renewed or extended;

(vii)   the exercise of an option, the date on which the option is exercised;

(viii)  the termination of an option granted by a company to a person to acquire a share, participatory interest or debenture of that company, the date on which that option terminates; or

(ix)    any other case, the date of change of ownership;

(b)     the extinction of an asset including by way of forfeiture, termination, redemption, cancellation, surrender, discharge, relinquishment, release, waiver, renunciation, expiry or abandonment, the date of the extinction of the asset;

(c)     the scrapping, loss or destruction of an asset is the date-

(i)      when the full compensation in respect of that scrapping, loss or destruction is received; or

(ii)     if no compensation is payable, the later of the date when the scrapping, loss or destruction is discovered or the date on which it is established that no compensation will be payable;

(d)     ……….

(e)     the distribution of an asset by a company to a holder of shares, is the date on which that asset is so distributed as contemplated in paragraph 75;

(f)      the decrease of a person’s interest in a company, trust or partnership as a result of a value shifting arrangement, is the date on which the value of that person’s interest decreases; or

(g)     the happening of an event contemplated in-

(i)      paragraph 12(2)(a), (b), (c), (d) or (e), 12(3) or 12(4), is the date immediately before the day that the event occurs; or

(ii)     paragraph 12(2)(f), is the date that that event occurs.

(2)     A person to whom an asset is disposed of is treated as having acquired that asset at the time of disposal of that asset as contemplated in subparagraph (1).