5. Religion, Belief or Philosophy
(a) The promotion or practice of religion which encompasses acts of worship, witness, teaching and community service based on a belief in a deity.
(b) The promotion and/or practice of a belief.
(c) The promotion of, or engaging in, philosophical activities.
5. Deductions from income derived from oil and gas activities
(1) For purposes of determining the taxable income of an oil and gas company during any year of assessment, there must be allowed as deductions from the oil and gas income of that company all expenditure and losses actually incurred (other than any expenditure or loss actually incurred in respect of the acquisition of any oil and gas right, except as allowed in paragraph 7(3)) in that year in respect of exploration or post-exploration.
(2) In addition to any other deductions (as contemplated in subparagraph (1) other than any expenditure or loss actually incurred in respect of the acquisition of any oil and gas right) allowable in terms of this paragraph, for purposes of determining the taxable income of an oil and gas company during any year of assessment, there must be allowed as deductions from the oil and gas income of that company derived in that year of assessment-
(a) 100 per cent of all expenditure of a capital nature actually incurred in that year of assessment in respect of exploration in terms of an oil and gas right; and
(b) 50 per cent of all expenditure of a capital nature actually incurred in that year of assessment in respect of post-exploration in respect of an oil and gas right.
(2A) For the purposes of determining the taxable income of an oil and gas company during the first year of assessment of that oil and gas company commencing on or after 2 November 2006, there will be brought forward and allowed as a deduction from the oil and gas income of that oil and gas company the amount determined in terms of section 36(7E) in respect of the immediately preceding year of assessment.
(3) For purposes of determining the taxable income of an oil and gas company during any year of assessment, any assessed losses (as defined in section 20) in respect of exploration or post-exploration may only be set off against –
(a) the oil and gas income of that company; and
(b) income from the refining of gas derived in respect of any oil and gas right held by that company,
to the extent that those assessed losses do not exceed that income.
(4) To the extent that any assessed losses remain after the set-off contemplated in subparagraph (3), an amount equal to 10 per cent of those remaining assessed losses may be set off against any other income derived by that company.
(5) To the extent that any assessed loss remains after the set-offs contemplated in subparagraphs (3) and (4), those losses may be carried forward to the succeeding year of assessment of that oil and gas company.
6. Cultural
(a) The advancement, promotion or preservation of the arts, culture or customs.
(b) The promotion, establishment, protection, preservation or maintenance of areas, collections or buildings of historical or cultural interest, national monuments, national heritage sites, museums, including art galleries, archives and libraries.
(c) The provision of youth leadership or development programmes.
6. Exploration and post-exploration expenses
If a company holds an oil and gas right contemplated in paragraph (a) or (b) of the definition of ‘oil and gas right’ during any year of assessment-
(a) that company is deemed to be carrying on a trade in respect of that oil and gas right; and
(b) expenditure and losses incurred by that company in respect of that oil and gas right are deemed to be incurred in the production of income of that company.
68. Attribution of capital gain to spouse
(1) Where a person’s capital gain or a capital gain that has vested in or is treated as having vested in that person during the year of assessment in which it arose can be attributed wholly or partly to-
(a) any donation, settlement or other disposition; or
(b) any transaction, operation or scheme, made, entered into or carried out by that person’s spouse mainly for purposes of reducing, postponing or avoiding that spouse’s liability for any tax, duty or levy which would otherwise have become payable under any Act administered by the Commissioner, so much of the gain as can be so attributed must be disregarded when determining that person’s aggregate capital gain or aggregate capital loss and taken into account when determining the aggregate capital gain or aggregate capital loss of that person’s spouse.
(2) Where a person’s capital gain is derived from-
(a) any trade carried on by that person in partnership or association with that person’s spouse or which is in any way connected with any trade carried on by that spouse; or
(b) that person’s spouse or any partnership or private company at a time when that spouse was a member of that partnership or the sole, main or one of the principal holders of shares in that company,
so much of that gain as exceeds the amount to which that person would reasonably be entitled having regard to the nature of the relevant trade, the extent of that person’s participation therein, the services rendered by that person or any other relevant factor, must be disregarded when determining that person’s aggregate capital gain or aggregate capital loss and taken into account when determining the aggregate capital gain or aggregate capital loss of that person’s spouse.
7. Conservation, Environment and Animal Welfare
(a) Engaging in the conservation, rehabilitation or protection of the natural environment, including flora, fauna or the biosphere.
(b) The care of animals, including the rehabilitation, or prevention of the ill-treatment of animals.
(c) The promotion of, and education and training programmes relating to, environmental awareness, greening, clean-up or sustainable development projects.
(d) The establishment and management of a transfrontier area, involving two or more countries, which –
(i) is or will fall under a unified or coordinated system of management without compromising national sovereignty; and
(ii) has been established with the explicit purpose of supporting the conservation of biological diversity, job creation, free movement of animals and tourists across the international boundaries within the peace park, and the building of peace and understanding between the nations concerned.
73. Attribution of income and capital gain
(1) Where both an amount of income and a capital gain are derived by reason of or are attributable to a donation, settlement or other disposition, the total amount of that income and gain-
(a) that is deemed in terms of section 7 to be that of a person other than the one to whom it accrues or by whom it is received or for whose benefit it is expended or accumulated; and
(b) that is attributed in terms of this Part to a person other than the one in whom it vests, shall not exceed the amount of the benefit derived from that donation, settlement or other disposition.
(2) For purposes of this paragraph, the benefit derived from a donation, settlement or other disposition means the amount by which the person to whom that donation, settlement or other disposition was made, has benefited from the fact that it was made for no or an inadequate consideration, including consideration in the form of interest.
8. Research and consumer rights
(a) Research including agricultural, economic, educational, industrial, medical, political, social, scientific and technological research.
(b) The protection and promotion of consumer rights and the improvement of control and quality with regard to products or services.
9. Sport
The administration, development, co-ordination or promotion of sport or recreation in which the participants take part on a non-professional basis as a pastime.
97. Transactions during transitional period
(1) For purposes of this paragraph “transitional period” means the period from 23 February 2000 until and including the day before the valuation date.
(2) Subject to subparagraph (3), where a person-
(a) acquired an asset during the transitional period by means of a non-arm’s length transaction, that person shall for purposes of paragraph 30 be treated as having acquired that asset-
(i) at the time when the person who disposed of that asset acquired that asset; and
(ii) at a cost equal to the base cost of that asset in the hands of the person who disposed of it; or
(b) acquired an asset during the transitional period directly or indirectly from a person who was a connected person in relation to that person at-
(i) the time of that acquisition; or
(ii) any time during the period from the date of that acquisition up to a subsequent disposal of that asset by that person within three years of that acquisition,
that person shall for purposes of paragraph 30 be treated as having acquired that asset-
(aa) at the time when that connected person acquired that asset, or is treated as having acquired that asset in terms of this paragraph; and
(bb) at a cost equal to the base cost of that asset in the hands of that connected person, or an amount which is treated as the base cost of that asset in the hands of that connected person in terms of this paragraph; or
(c) reacquired an asset within a period of ninety days after its disposal during the transitional period-
(i) by means of a non-arm’s length transaction; or
(ii) directly or indirectly to a connected person in relation to that person,
that person shall for the purposes of paragraph 30 be treated as having reacquired that asset-
(aa) at the time when that person originally acquired that asset prior to that disposal; and
(bb) at a cost equal to the base cost of that asset at the time of that disposal; or
(d) acquired an asset within a period of ninety days after the disposal, during the transitional period, of a substantially similar asset that was disposed of-
(i) by means of a non-arm’s length transaction; or
(ii) directly or indirectly to a connected person in relation to that person, in order to replace the asset so disposed of,
that person shall for the purposes of paragraph 30 be treated as having acquired that asset-
(aa) at the time when that person acquired the substantially similar asset; and
(bb) at a cost equal to the base cost of that substantially similar asset at the time of that disposal.
(3) The provisions of this paragraph do not apply to any disposal of an asset by a fund contemplated in section 29A(4) to any other such fund in terms of section 29A(6) or (7).