Category: PRELIMINARY (ITA)

“Taxable income” definition of section 1 of ITA

Posted on by admin_kmos

“taxable income” means the aggregate of –

(a)     the amount remaining after deducting from the income of any person all the amounts allowed under Part I of Chapter II to be deducted from or set off against such income; and

(b)     all amounts to be included or deemed to be included in the taxable income of any person in terms of this Act;

“Severance benefit” definition of section 1 of ITA

Posted on by admin_kmos

“severance benefit” means any amount (other than a lump sum benefit or an amount contemplated in paragraph (d)(ii) or (iii) of the definition of ‘gross income’) received by or accrued to a person by way of a lump sum from or by arrangement with the person’s employer or an associated institution in relation to that employer in respect of the relinquishment, termination, loss, repudiation, cancellation or variation of the person’s office or employment or of the person’s appointment (or right or claim to be appointed) to any office or employment, if-

(a)     such person has attained the age of 55 years;

(b)     such relinquishment, termination, loss, repudiation, cancellation or variation is due to the person becoming permanently incapable of holding the person’s office or employment due to sickness, accident, injury or incapacity through infirmity of mind or body; or

(c)     such termination or loss is due to-

(i)      the person’s employer having ceased to carry on or intending to cease carrying on the trade in respect of which the person was employed or appointed; or

(ii)      the person having become redundant in consequence of a general reduction in personnel or a reduction in personnel of a particular class by the person’s employer,

unless, where the person’s employer is a company, the person at any time held more than five per cent of the issued shares or members’ interest in the company:

Provided that any such amount which becomes payable in consequence of or following upon the death of a person must be deemed to be an amount which accrued to such person immediately prior to his or her death;

“Trade” definition of section 1 of ITA

Posted on by admin_kmos

“trade” includes every profession, trade, business, employment, calling, occupation or venture, including the letting of any property and the use of or the grant of permission to use any patent as defined in the Patents Act or any design as defined in the Designs Act or any trade mark as defined in the Trade Marks Act or any copyright as defined in the Copyright Act or any other property which is of a similar nature;