‘concession or compromise’ means any arrangement in terms of which-

(a)     a debt is-

(i)      cancelled or waived; or

(ii)     extinguished by-

(aa)   redemption of the claim in respect of that debt by the person owing that debt or by any person that is a connected person in relation to that person; or

(bb)   merger by reason of the acquisition, by the person owing that debt, of the claim in respect of that debt,

otherwise than as the result or by reason of the implementation of an arrangement described in paragraph (b);

(b)     a debt owed by a company to a person is settled, directly or indirectly-

(i)      by being converted to or exchanged for shares in that company; or

(ii)     by applying the proceeds from shares issued by that company;

[Definition of ‘concession or compromise’ substituted by section 77 of Act 23 of 2018 effective on 1 January 2018, applies in respect of years of assessment commencing on or after that date]