22.    Amount of donations tax to be included in base cost

 

The amount of the donations tax payable by a person in respect of the disposal of an asset which may be taken into account in terms of paragraph 20(1)(c)(vii) must be determined in accordance with the formula-

 

Y       =       (M  –  A)   x   D

                        M

 

where-

 

(a)     “Y” represents the amount to be determined;

(b)     “M” represents the market value of the asset donated in respect of which the donations tax is payable;

(c)     “A” represents all amounts allowed to be taken into account in determining the base cost of the asset in terms of this Part (other than paragraph 20(1)(c)(vii)); and

(d)     “D” represents the total amount of donations tax so payable:

 

Provided that where the amount included in “A” is greater than the amount included in “M”, the amount of donations tax to be taken into account in terms of paragraph 20(1)(c)(vii) shall be nil.