Subsections 2, 3 and 4 of section 23G of ITA

Posted on October 15, 2015January 15, 2025 by admin_kmos

(2) Where the receipts or accruals of any person, who is a lessee or sublessee in relation to a sale and leaseback arrangement, do not for the purposes of this Act constitute income of such person –

(a) any amount which is received by or accrues to any lessor in relation to such sale and leaseback arrangement, shall be limited to an amount which constitutes interest as contemplated in section 24J; and

(b) such lessor shall, notwithstanding the provisions of this Act, not be entitled to any deduction in terms of section 11(e), (f), (gA) or (gC) or sections 12B, 12BA, 12C, 12DA, 13 or 13quin in respect of an asset which is the subject matter of such sale and leaseback arrangement.

[Paragraph (b) substituted by section 30 of Act 31 of 2005, by section 35 of Act 35 of 2007, by section 40 of Act 23 of 2018 and by section 25(1) of Act 17 of 2023 effective on 1 March, 2023 and applicable in respect of assets brought into use on or after that date]

(3) Where the receipts or accruals of any person, who is a lessor in relation to a sale and leaseback arrangement, arising from such arrangement do not for the purposes of this Act constitute income of such person, any deduction to which a lessee or sublessee in relation to such sale and leaseback arrangement is entitled under the provisions of this Act shall, subject to the provisions of section 11(f), be limited to an amount which constitutes interest as contemplated in section 24J.

(4) The provisions of subsection (2)(a) shall not apply to any person who is both a lessor and a lessee in relation to the same sale and leaseback arrangement during any year of assessment.

“Sale and leaseback arrangement” definition of section 23G of ITA

Posted on October 15, 2015February 9, 2019 by admin_kmos

“sale and leaseback arrangement” means any arrangement whereby –

(a) any person disposes of any asset (whether directly or indirectly) to any other person; and

(b) such person or any connected person in relation to such person leases (whether directly or indirectly) such asset from such other person.

“Asset” definition of section 23G of ITA

Posted on October 15, 2015February 9, 2019 by admin_kmos

(1) For the purposes of this section –

“asset” means any asset, whether movable or immovable, or corporeal or incorporeal;

“Short selling” definition of section 24J of ITA

Posted on October 15, 2015February 13, 2019 by admin_kmos

“short selling” means the sale of any instrument by a person who is not the owner of such instrument, and in respect of which such person has the obligation to deliver such instrument at a future date;

“Resale agreement” definition of section 24J of ITA

Posted on October 15, 2015February 13, 2019 by admin_kmos

“resale agreement” means the provision of money (which money shall for the purposes of this section be deemed to have been so provided in the form of a loan) through the acquisition of an asset by any person from any other person subject to an agreement in terms of which such person undertakes to dispose of to such other person at a future date the asset so acquired or any other asset issued by the issuer of, and which has been so issued subject to the same conditions regarding term, interest rate and price as, the asset so acquired;

“Repurchase agreement” definition of section 24J of ITA

Posted on October 15, 2015February 13, 2019 by admin_kmos

“repurchase agreement” means the obtaining of money (which money shall for the purposes of this section be deemed to have been so obtained by way of a loan) through the disposal of an asset by any person to any other person subject to an agreement in terms of which such person undertakes to acquire from such other person at a future date the asset so disposed of or any other asset issued by the issuer of, and which has been so issued subject to the same conditions regarding term, interest rate and price as, the asset so disposed of;

“Redemption payment” definition of section 24J of ITA

Posted on October 15, 2015February 13, 2019 by admin_kmos

“redemption payment”, in relation to an instrument, means any payment made or received which has the effect of redeeming such instrument;

“Redemption” definition of section 24J of ITA

Posted on October 15, 2015February 13, 2019 by admin_kmos

“redemption”, in relation to an instrument, means the discharging of all liability to pay all amounts in terms of such instrument;

“Lending arrangement” definition of section 24J of ITA

Posted on October 15, 2015February 13, 2019 by admin_kmos

“lending arrangement” means any arrangement or agreement in terms of which –

(a) a person (in this section referred to as the lender) lends any instrument to another person (in this section referred to as the borrower); and

(b) the borrower in return undertakes to return any instrument of the same kind and of the same or equivalent quantity and quality to the lender;

“Issuer” definition of section 24J of ITA

Posted on October 15, 2015February 13, 2019 by admin_kmos

“issuer”, in relation to any instrument –

(a) means any person who has incurred any interest or has any obligation to repay any amount in terms of such instrument; or

(b) at any particular time, means any person who, if any interest payable in terms of such instrument was due and payable at that time, would be liable to pay such interest;