“Year of assessment” definition of section 1 of ITA

“year of assessment” means any year or other period in respect of which any tax or duty leviable under this Act is chargeable, and any reference in this Act to any year of assessment ending the last or the twenty-eighth or the twenty-ninth day of February shall, unless the context otherwise indicates, in the case of a company or a portfolio of a collective investment scheme in securities be construed as a reference to any financial year of that company or portfolio ending during the calendar year in question.

“Trading stock” definition of section 1 of ITA

“trading stock” includes

(a)        includes-

(i)      anything produced, manufactured, constructed, assembled, purchased or in any other manner acquired by a taxpayer for the purposes of manufacture, sale or exchange by the taxpayer or on behalf of the taxpayer;

(ii)     anything the proceeds from the disposal of which forms or will form part of the taxpayer’s gross income, otherwise than-

(aa)   in terms of paragraph (j) or (m) of the definition of ‘gross income’;

(bb)   in terms of paragraph 14(1) of the First Schedule; or

(cc)   as a recovery or recoupment contemplated in section 8(4) which is included in gross income in terms of paragraph (n) of the definition of ‘gross income’; or

(iii)    any consumable stores and spare parts acquired by the taxpayer to be used or consumed in the course of the taxpayer’s trade; but

(b)        does not include-

(i)         a foreign currency option contract ;or

(ii)        a forward exchange contract,

as defined in section 24I(1);

“Special trust” definition of section 1 of ITA

“special trust” means a trust created –

(a)     solely for the benefit of one or more persons who is or are persons with a disability as defined in section 6B(1) where such disability incapacitates such person or persons from earning sufficient income for their maintenance, or from managing their own financial affairs: Provided that-

(aa)   such trust shall be deemed not to be a special trust in respect of years of assessment ending on or after the date on which all such persons are deceased; and

(bb)   where such trust is created for the benefit of more than one person, all persons for whose benefit the trust is created must be relatives in relation to each other; or

(b)     by or in terms of the will of a deceased person, solely for the benefit of beneficiaries who are relatives in relation to that deceased person and who are alive on the date of death of that deceased person (including any beneficiary who has been conceived but not yet born on that date), where the youngest of those beneficiaries is on the last day of the year of assessment of that trust under the age of 18 years;

“Return of capital” definition of section 1 of ITA

“return of capital” means any amount transferred by a company that is a resident for the benefit or on behalf of any person in respect of any share in that company to the extent that that transfer results in a reduction of contributed tax capital of the company, whether that amount is transferred-

(a)       by way of a distribution made by; or

(b)       as consideration for the acquisition of any share in,

that company, but does not include any amount so transferred to the extent that the amount so transferred constitutes-

(i)      shares in the company; or

(ii)   an acquisition by the company of its own securities by way of a general repurchase of securities as contemplated in subparagraph (b) of paragraph 5.67(B) of section 5 of the JSE Limited Listings Requirements, where that acquisition complies with any applicable requirements prescribed by paragraph s 5.68 and 5.72 to 5.81 of section 5 of the JSE Limited Listings Requirements or by way of a general repurchase of securities as contemplated in the listings requirements of any other exchange, licensed under the Financial Markets Act, that are substantially the same as the requirements prescribed by the JSE Limited Listings Requirements, where that acquisition complies with the applicable requirements of that exchange;

[Paragraph (ii) substituted by section 2(1)(l) of Act 17 of 2017 and by section 2(1)(g) of Act 34 of 2019 deemed effective on 1 March, 2019]

[Definition of “return of capital” inserted by section 7 of Act 24 of 2011 and substituted by section 2 of Act 17 of 2017 effective on 18 December 2017]