Category: Paragraph 27 (Eighth Schedule) – Valuation date value where proceeds do not exceed expenditure

Paragraph 27

 

  1. Subparagraph (1) substituted by section 74 of Act 74 of 2002.

 

  1. Subitem (ii) amended by section 75 of Act 74 of 2002.

 

  1. Subparagraph (4) substituted by section 97 of Act 45 of 2003.

 

  1. Paragraph 27 substituted by section 79 of Act 60 of 2001.

Paragraph 27 (Eighth Schedule) – Valuation date value where proceeds do not exceed expenditure

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27.     Valuation date value where proceeds do not exceed expenditure

 

(1)     Subject to subparagraph (2), where the proceeds from the disposal of a pre-valuation date asset do not exceed the expenditure allowable in terms of paragraph 20 incurred before, on and after the valuation date in respect of that asset, the valuation date value of that asset must be determined in terms of this paragraph.

 

(2)     This paragraph does not apply in respect of any asset contemplated in paragraph 28 or in respect of which paragraph 32(3A) has been applied.

 

(3)     Where a person has determined the market value of an asset on the valuation date, as contemplated in paragraph 29, or the market value of an asset has been published in terms of that paragraph, and-

 

(a)     the expenditure allowable in terms of paragraph 20 incurred before the valuation date in respect of that asset-

 

(i)      is equal to or exceeds the proceeds from the disposal of that asset; and

 

(ii)     exceeds the market value of that asset on valuation date, the valuation date value of that asset must be the higher of-

 

(aa)   that market value; or

 

(bb)   those proceeds less the expenditure allowable in terms of paragraph 20 incurred on or after the valuation date in respect of that asset; or

 

(b)     the provisions of item (a) do not apply, the valuation date value of that asset must be the lower of-

 

(i)      that market value; or

 

(ii)     the time-apportionment base cost of that asset as contemplated in paragraph 30.

 

(4)     Where the provisions of subparagraph (3) do not apply, the valuation date value of that asset, contemplated in subparagraph (1), is the time-apportionment base cost of that asset, as contemplated in paragraph 30.