(1)     For the purposes of this section-

 

‘intra-group transaction’ means any transaction-

 

(a)

 

(i)      in terms of which any asset is disposed of by one company (hereinafter referred to as the ‘transferor company’) to another company that is a resident (hereinafter referred to as the ‘transferee company’) and both companies form part of the same group of companies as at the end of the day of that transaction; and

 

(ii)     as a result of which that transferee company acquires that asset from that transferor company-

 

(aa)    as a capital asset, where that transferor company holds it as a capital asset; or

 

(bb)   as trading stock, where that transferor company holds it as trading stock; or

 

(b)

  

(i)      in terms of which any asset that constitutes an equity share held by a transferor company as a capital asset in a foreign company is disposed of by that transferor company to a transferee company in exchange for the issue of debt or shares other than equity shares by that transferee company;

  

(ii)     as a result of which that transferee company acquires that asset from that transferor company as a capital asset; and

 

(iii)    if, immediately before and as at the end of the day of that transaction-

 

(aa)   that transferor company and that transferee company form part of the same group of companies (as defined in section 1);

 

(bb)   that transferor company is a resident or is a controlled foreign company in relation to one or more residents that form part of that group of companies; and

 

(cc)   that transferee company is a resident or is a controlled foreign company in relation to one or more residents that form part of that group of companies.