(2) Any amount received by or accrued to a client in terms of a mudaraba is deemed to be interest as contemplated in paragraph (a) of the definition of ‘interest’ in section 24J(1).
[Subsection (2) substituted by section 54 of Act 24 of 2011 and section 45 of Act 25 of 2015 effective on 1 January 2016]
(3) Where any murabaha is entered into between a financier and a client of that financier as contemplated in paragraph (a) of the definition of ‘murabaha’-
(a) the financier is deemed not to have acquired or disposed of the asset under the sharia arrangement;
(b) the client is deemed to have acquired the asset from the seller-
(i) for consideration equal to the amount paid by the financier to the seller; and
(ii) at such time as the financier acquired the asset from the seller by virtue of the transaction between the seller and the financier;
(c) the murabaha is deemed to be an instrument for the purposes of section 24J;
(d) the difference between the amount of consideration paid for the asset by the financier to the seller and the consideration payable to the financier by the client to acquire the asset as contemplated in paragraph (b)(ii) of the definition of “murabaha” is deemed to be a premium payable or receivable contemplated in paragraph (a) of the definition of ‘interest’ in section 24J(1); and
[Paragraph (d) substituted by section 55 of Act 22 of 2012 and section 45 of Act 25 of 2015 effective on 1 January 2016]
(e) the amount of consideration paid by the financier to acquire the asset as contemplated in paragraph (a) of the definition of ‘murabaha is deemed to be an issue price for the purposes of section 24J.
(4) ……….
(5) For the purposes of determining the tax on income of the client in respect of a diminishing musharaka-
(a) where the bank and the client jointly acquire an asset, the client is deemed to have acquired the bank s interest in the asset-
(i) for an amount equal to the amount paid by the bank in respect of its interest in the asset; and
(ii) at the time that the seller of the asset was divested of its interest in the asset by virtue of the transaction between the seller and the bank; or
(b) where the bank acquires an interest in an asset from the client, the client is deemed not to have disposed of the interest in the asset or to have acquired that interest from the bank.
(6)
(a) For the purposes of subsection (5), where an instalment is paid by the client to the bank, a portion of that instalment, the amount of which must be determined in accordance with paragraph (b), is deemed to be interest as defined in section 24J(1).
(b) The amount contemplated in paragraph (a) must be determined in accordance with the formula-
X = A – B
in which formula-
(i) ‘X’ represents the amount to be determined;
(ii) ‘A’ represents the total amount of the instalment payable by the client to the bank;
(iii) ‘B’ represents the expenditure incurred by the bank to acquire the portion of the interest in the asset transferred to the client in exchange for the instalment payable by the client to the bank.
(7) Where any sukuk is entered into-
(a) the trust is deemed not to have acquired the asset from the government of the Republic, the public entity that is listed in Schedule 2 to the Public Finance Management Act or the listed company under the sharia arrangement;
[Paragraph (a) substituted by section 45 of Act 25 of 2015 effective on 1 January 2016]
(b) the government, that public entity or that listed company is deemed not to have disposed of or reacquired the asset; and
[Paragraph (b) substituted by section 45 of Act 25 of 2015 effective on 1 January 2016]
(c) any consideration paid by the government, that public entity or that listed company in respect of the use of the asset held by the trust is deemed to be interest as contemplated in paragraph (a) of the definition of ‘interest’ in section 24J(1).
[Paragraph (c) substituted by section 45 of Act 25 of 2015 effective on 1 January 2016]
[Subsection (7) added by section 54 of Act 24 of 2011 and substituted by section 42 of Act 43 of 2014 effective on 1 April 2015]