Taxation Laws Amendment Act 108 of 1986
STAATSKOERANT VAN DIE REPUBLIEK VAN SUID-AFRIKA
REPUBLIC OF SOUTH AFRICA
GOVERNMENT GAZETTE
As 'n Nuusblad by die Poskantoor Geregistreer Registered at the Post Office as a Newspaper
VoL. 255
Verkoopprys • Selling price (AVB uitgesluit/GST excluded)
Plaaslik 45c Local Buitelands 60c Other countries
Posvry • Post free
KAAPSTAD, 19 SEPTEMBER 1986
CAPE TOWN, 19 SEPTEMBER 1986 No. 10453
KANTOOR VAN DIE ST AA TSPRESIDENT STATE PRESIDENT'S OFFICE
No.1964. 19 September 1986 No. 1964. 19 September 1986
Hierby word bekend gemaak dat die Staatspresident sy ;;;;;~oedkeuring geheg bet aan die onderstaande Wet wat llllliierby ter algemene inligting gepubliseer word:-
It is hereby notified that the State President has assented to the following Act which is hereby published for general information:-
No. 108 van 1986: Wysigingswet op Belastingwette, No. 108 of 1986: Taxation Laws Amendment Act, 1986. 1986.
Please note that most Acts are published in English and another South African official language. Currently we only have capacity to publish the English versions. This means that this document will only contain even numbered pages as the
other language is printed on uneven numbered pages.
GOVERNMENT GAZETTE, 19 SEPTEMBER 1986 No.10453 3
TAXATIONLAWSAMENDMENTACf, 1986 Act No. 108, 1986
GENERAL EXPLANATORY NOTE:
[ ] Words in bold type in square brackets indicate omissions from existing enactments.
Words underlined with solid line indicate insertions in existing enactments.
ACT To amend the Income Tax Act, 1962, so as to provide for the tax-
ation or exemption from taxation of certain income derived from building societies and mutual building societies; to make further provision relating to a LIFO reserve where a commercial or industrial undertaking has been acquired by one company from another; to provide that a debtors allow- ance granted in any year of assessment shall be included in income in the following year of assessment; and to further provide for the determination of the cash equivalent of the value of the taxable benefit derived from the private use of a motor vehicle; to amend the Stamp Duties Act, 1968, so as to effect certain textual alterations; to amend the Sales Tax Act, 1978, so as to provide for the display of a notice where cer- tain exemptions apply; to further provide for an adjustment in respect of cancelled financial leases or defects in leased property let under financial leases; to provide for the pay- ment of sales tax where any registration certificate has been cancelled in certain circumstances; and to provide that there shall be a tax period ending on the date on which a registra- tion certificate is cancelled in certain circumstances; and to provide for matters connected therewith.
(English text signed by the State President.) (Assented to 10 September 1986.)
BE IT ENACTED by the State President and the Parliament of the Republic of South Africa, as follows:-
1. (1) Section 1 of the Income Tax Act, 1962 (hereinafter re- ferred to as the principal Act), is hereby amended-
5 (a) by the insertion after the definition of "bonus deben- tures or securities" of the following definition: "'building society' means a building society registered
under the Building Societies Act, 1986 (Act No. 82 of 1986);";
10 (b) by the substitution in the definition of "dividend" for the words preceding paragraph (a) of the following words: '"dividend' meahs any amount distributed by a com-
pany (not being a [permanent] mutual building so- lS ciety or an institution to whichSectiOn 10 (1) (d)
applies) to its shareholders or any amount distri- buted out of the assets pertaining to any unit port- folio referred to in paragraph (e) of the definition of 'company' in this section to shareholders in re-
20 lation to such unit portfolio (including, in the case of any co-operative society or company referred to in section 27, any amount distributed on or after 1 April1977 to its members, whether divided among
Amendment of section 1 of Act 58 of 1962, as amended by section 3 of Act 90 of 1962, section 1 of Act 6 of 1963, section 4 of Act 72 of!963, section 4 of Act 90 of 1964, section 5 of Act88of1965, section 5 of Act 55 of 1966, section 5 of Act 95 of 1967, section 5 of Act 76 of!968, section 6 of Act 89 of 1969, section 6 of Act 52 of 1970, section4 of Act 88 of!971, section 4 of
GOVERNMENT GAZETTE, 19 SEPTEMBER 1986 No. 10453 5
TAXATION LAWS AMENDMENT ACf, 1986 Act No. 108, 1986
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the members in accordance with their rights as Act 90 of 1972, section 4 of shareholders or according to the value of business Act 65 of 1973,
transactions between individual members and such section 4 of society or company or on some other basis), and in Act 85 of 1974, this definition the expression 'amount distributed' ~~:i6'; ~ ~~75 , includes-"; and section 4 of
(c) by the insertion after the definitions of "mining opera- Act 103 of 1976, tions" and "mining" of the following definition: section 4 of '"mutual building society' means a mutual building so- Act.113of1977,
. . . . . . · sectiOn 3 of Ciet re Istered under the Mutual Bmldmg Socie- Act 101 of 1978, ties Act 1965 (Act No. 24 of 1965 ·". section 3 of
' . ' Act 104 of 1979, (2) Subsection (1) shall come mto operation on the date of section 2 of
commencement of the Building Societies Act, 1986 (Act No. 82 Act 104 of 1980, of 1986) section 2 of
· · Act 96 of1981, section 3 of Act 91 of 1982, section 2 of Act 94 of1983, section 1 of Act 30 of 1984, section 2 of Act 121 of 1984, section 2 of Act 96 of 1985 and section 2 of Act 65 of 1986.
15 2. (1) Section 9 of the principal Act is hereby amended by the substitution for subsection (2) of the following subsection:
Amendment of section 9 of Act 58 of 1962, as amended by section 7 of Act 90 of 1962, section 6 of Act 72 of 1963, section 7 of Act 90 of 1964, section 9 of Act 95 of 1967, section 12 of Act 89 of 1969, section 6 of Act 65 of 1973, section 9 of Act 85 of 1974, section 8 of
"(2) Any interest which has been received by or has ac- crued to any person (other than a company) who is ordinar- ily resident in the Republic or has been received by or has
20 accrued to any domestic company, in respect of any loan to or deposit in any building society or mutual building society [registered under the Building Societies Act, 1965 (Act No. 24 of 1965)] or any similar institution wheresoever it is in- corporated, formed or established or any dividend or share
25 of profits distributed by any [such society] mutual building society or similar institution wheresoever it is incorporated, formed or established which has been received by or has ac- crued to any such person or company, shall be deemed. to have been derived from a source within the Republic,
30 wheresoever such loan or deposit is made or held or any share to which such dividend or share of profits relates is subscribed for or held or such interest, dividend or share of profits is payable.".
(2) Subsection (1) shall come into operation on the date of 35 commencement of the Building Societies Act, 1986 (Act No. 82
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of1986). ·
3. (1) Section 10 of the principal Act is hereby amended- ( a) by the substitution for subparagraph (xii) of paragraph
(i) of subsection (1) of the following subparagraph: "(xii) so much of the aggregate of the amounts credited
as- (aa) dividends on subscription shares by all mutual -building societies; and (bb)interest on subcri~ deposits by all building
societies. during the year of assessment as [( aa) in respect of the year of assessment ending 28
February 1982, in the case of any one person, does not exceed an amount of simple interest calculated on a total capital sum of R100 000
Act 103 of 1976, section 9 of Act 121 of 1984, section 5 of Act 96 of 1985 and section 6 of Act 65 of 1986.
Amendment of section 10 of Act 58 of 1962, as amended by section 8of Act 90 of 1962, section 7 of Act 72 of 1963, sectionS of Act 90 of 1964, section Wof Act 88 of 1965, section 11 of Act 55 of 1966, section 10 of Act 95 of 1967, section 8 of Act 76 of 1968,
GOVERNMENT GAZEITE, 19 SEPTEMBER 1986
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TAXATION LAWS AMENDMENT ACT, 1986
at a rate equal to the highest rate of dividends so credited during such year;
( bb) in respect of the year of assessment ending 28 February 1983, in the case of any one person, does not exceed an amount of simple interest calculated on a total capital sum of RSO 000 at a rate equal to the highest rate of dividends so credited during such year; and
( cc) in respect of any year of assessment ending on or after 29 February 1984] in the case of any taxpayer does not exceed an amount of simple interest calculated on a total capital sum of R50 000 at a rate [equal to the highest rate of dividends so credited during such year] ap- proved by the Minister of Finance from dille to time for the purposes of this exemption: Provided that- (a) this exemption shall not apply [if the] to - any such dividends or interest [so received
or accrued during the year of assessment exceed in the aggregate an amount calcu- lated on the total amount invested in such shares] calculated at a rate exceeding the rate so approved by the Minister of Fi- nance [from time to time for the purposes of this exemption: Provided further that]; and
for the purposes of this subparagraph- ' dividend' shall be deemed to include any
bonus or other distribution of profits [which becomes payable on or after 1 Apri11982]; and
'subscription dep'Oslf shall mean a deposit made in a building society and which in the opinion of the Registrar o Building Societies having regard to the terms and conditions subject to which such deposit is accepted, is equivalent to a subscription share i a mutual building society;";
(b) by the substitution for subparagraph (xiiA) of para- graph (i) of subsection (1) of the following subpara- graph:
"(xiiA) interest received by or accrued to any person from 45 deposits in any savings account with any building
society or mutual building society under the State- Aided Home-Ownership Savings Scheme;";
(c) by the substitution for subparagraph (xiii) of paragraph (i) of subsection (1) of the following subparagraph:
50 "(xiii) in the case of a taxpayer who is a natural person,
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dividends and interest received or accrued on so much of the total amount invested in-
(aa) Special Tax-Free Indefinite Period Shares in --mutual building societies; and
(bb) indefinite period deposits in building societies, as does not exceed the amount of R20 000: Pro- vided that- ( a) this exemption shall not apply [if the] to any ~ dividends or interest [so received Or"ii'C- crued during the year of assessment exceed in
No. 10453 7
Act No. 108, 1986
section 13 of Act 89 of 1969, section 9 of Act 52 of 1970, section 7 of Act 90 of 1972, section 7 of Act 65 of 1973, section 10 of Act 85 of 1974, section 8 of Act 69 of 1975, section 9 of Act 103 of 1976, section 8 of Act 113 of 1977, section 4 of Act 101 of 1978, section 7 of Act 104 of1979, section 7 of Act 104 of 1980, section 8 of Act96of1981, section 6 of Act 91 of 1982, section 9of Act 94 of 1983, section 10 of Act 121 of 1984, section 6 of Act 96 of 1985 and section 7 of Act 65 of 1986.
GOVERNMENT GAZETTE, 19SEPTEMBER 1986
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TAXATION LAWS AMENDMENT ACf, 1986
the aggregate an amount calculated on the total amount so invested] calculated at a rate exceeding a rate approved by the Minister of Finance from time to time for the purposes of this exemption [Provided further that]; and
for the purposes of this subparagraph- 'dividend' shall be deemed to include any bo-
nus or other distribution of profits [which becomes payable on or after 1 April 1982]; and
'indefinite perlod deposit' shall mean a deposit made in a building society and which i the opinion of the Registrar of Buildin Societies having regard to the terms an conditions subject to which such deposi is accepted, is equivalent to a Specia Tax-Free Indefinite Period Share in a mu tual building society;";
(d) by the substitution for paragraph (v) of subsection (1) 20 of the following paragraph:
"(v) interest received by or accrued to any person (other than a company) who is ordinarily resident in the territory (including the Eastern Caprivi Zip- fel) in respect of any loan to or deposit in any
25 building society or mutual building society [regis- tered under the Building Societies Act, 1965 (Act No. 24 of 1965)] made through any branch or agen- cy of such building society or mutual building so- ciety in that territory, or any dividend or share of
30 profits distributed by any [such] mutual building society to any such person in respect of any share in such society applied or subscribed for by such person through any such branch or agency;"; and
(e) by the substitution for paragraph (vA) of subsection (1) 35 ofthe following paragraph:
"(vAJin the case of] interest received by or accrued to any person (other than a company) who is ordinar- ily resident in a country or territory other than the Republic and South West Africa, in which a build-
40 ing society or mutual building society [registered under the Building Societies Act, 1965 (Act No. 24 of 1965)] is under the provisions of [section 22 (1) (mA) of that Act] any law empowered to conduct its business, or [in the case of] a company which is
45 managed and controlled in such country or territo- ry, [interest received by or accrued to such person or company] in respect of any loan to or deposit in [such] a building society or mutual building society made through any branch or agency of such ~
50 ing society or mutual building society in that coun- try or territory, or any dividend or share of profits distributed by [such] a mutual building society to such person or company in respect of any share in such mutual building society applied or subscribed
55 for by such person or company through any such branch or agency;".
(2) Subsection (1) shall come into operation on the date of commencement of the Building Societies Act, 1986 (Act No. 82 of1986).
No.10453 9
Act No. 108, 1986
60 4. (1) Section 19 of the principal Act is hereby amended by Amendmentof the substitution for subsection (SA) of the following subsection: section 19 of
Act 58 of 1962,
GOVERNMENTGAZETIE, 19SEPTEMBER 1986 No. 10453 11
TAXATION LAWS AMENDMENT ACT,1986 Act No. 108, 1986
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"(SA) Subject to the provisions of subsection (6), income as amended by . section 15 of recetved by or accrued to any person other than a company Act 90 of 1962,
by way of- section 6 of (a) a dividend (including any bonus or distribution of Act6of1963,
- profits) on shares in any [permanent] mutual building section 17 of Act 88 of 1965, society;and - section17of interestoo an Act88of1971,
=c....:;r.~"f::~'::-'::=f::::i:~-3'~~~'ci=:::::-,~':':'ii=:if.~~~ section 14 of w tc m t e optmon o t e egtstrar o UJ mg octe Act 90 of 1972, ties having regard to the terms and conditions subjec section 18 of to which such deposit is accepted, is equivalent to Act 85 of 1974,
section 14 of share in a mutual building society, Act 104 of 1980,
shall, notwithstanding the definition of 'dividend' in section section 17of 1, be deemed for the purposes of this section to be income Act 96 of 1981,
section 15 of derived by such person in the form of dividends: Provided Act 91 of 1982, that the provisions of this subsection shall not apply in re- section 17 of spect of any such dividend or interest which [became or be- Act 94 of 1983, comes payable on or after 1 September 1982. if such divi- section 17 of dend] is calculated at a rate exceeding the rate approved by Act 121 of 1984• section 12 of the Minister of Finance from time to time in respect of divi- Act 96 of 1985 dends on shares of the relevant class or interest on deposits and section 12 of of the relevant class.". Act 65 of 1986.
(2) Subsection (1) shall come into operation on the date of commencement of the Building Societies Act, 1986 (Act No. 82 of 1986).
5. (1) Section 22 of the principal Act is hereby amended- ( a) by the addition at the end of subparagraph (ii) of para-
graph (f) of subsection (5) of the word "and"; (b) by the substitution for subparagraph (iii) of the said
paragraph (f) of the following subparagraph: "(iii) a LIFO reserve has been determined in relation
to the last-mentioned company [has adopted the basis of trading stock valuation referred to in paragraph (a); and];"and
(c) by the deletion of subparagraph (iv) of the said para- graph (f).
(2) Subsection (1) shall be deemed to have taken effect as from the commencement of years of assessment ended or ending on or after 1 April1984.
Amendment of section 22 of Act 58 of 1962, as amended by section 8 of Act 6 of 1963, section 14 of Act 90 of 1964, section 21 of Act 89 of 1969, section 20 of Act 69 of1975, section 15 of Act 103 of 1976, section 20 of Act 94 of 1983, section 19 of Act 121 of 1984 and section 14 of Act 65 of 1986.
6. (1) Section 24 of the principal Act is hereby amended by 40 the addition to subsection (3) of the following proviso:
Amendment of section 24 of Act 58 of 1962, as substituted by section 16 of Act 65 of 1986.
"Provided that any deduction so allowed shall be includ- ed as income in the taxpayer's return for the following year of assessment and shall form part of his income.".
(2) Subsection (1) shall be deemed to have taken effect as 45 from the commencement of years of assessment ended or ending
on or after 1 January 1986.
7. (1) Section 64B of the principal Act is hereby amended by the substitution for paragraph (d) of the following paragraph:
" (d) any amount accruing to any shareholder in a mutual SO building society out of the profits of such society shall
be deemed to be interest;". (2) Subsection (1) shall come into operation on the date of
commencement of the Building Societies Act, 1986 (Act No. 82 of 1986).
Amendment of section 64B of Act 58 of 1962, as substituted by section 33 of Act 94 of 1983.
GOVERNMENT GAZETTE, 19 SEPTEMBER 1986
TAXATIONLAWSAMENDMENT ACT, 1986
8. ( 1) Section 64C of the principal Act is hereby amended by the substitution for paragraphs (f), (fA) and (/B) of the follow- ing paragraphs, respectively:
"(f) any amount credited in respect of any subscription 5 share in any mutual building society or any subscription
deposit in any-iiiiilciing society as contemplated in para- graph (b) of the proviso to section 10 (1) (i) (xii);
(fA) any amount accruing to any natural person as a divi- dend on Special Tax-Free Indefinite Period shares in
10 any mutual building society or as interest on any inde- finitepeii()d deposit in any building society as contem- plated in paragraph (b) of the proviso to section 10 (1) (i) (xiii): Provided that this exemption shall not apply in respect of any such dividend or interest the rate of
15 which exceeds a rate approved from time to time by the Minister of Finance;
(fB) interest [accruing] received by or accrued to any per- son (other than a company) who is ordinarily resident in a country or territory other than the Republic in
20 which a building society or mutual building society [registered under the Building Societies Act, 1965 (Act No. 24 of 1965)] is under the provisions of [section 22 (1) (mA) of that Act] any law empowered to conduct its business or [to] a company which is managed and con-
25 trolled in such country or territory, in respect of any loan to or deposit in [such] a building society or mutual building society made through any branch or agency of such building society or mutual building society in that country or territory, or [interest accruing to any such
30 person or company by way of] any dividend or share of profits distributed by [such] a mutual building society to such person or company in respect of any share in such mutual building society applied or subscribed for by such person or company through any such branch or
35 agency;". (2) Subsection (1) shall come into operation on the date of
commencement of the Building Societies Act, 1986 (Act No. 82 of 1986).
9. (1) Paragraph 18 of the Fourth Schedule to the principal 40 Act is hereby amended by the substitution for subitem (iii) of
item (d) of subparagraph (1) of the following subitem: "(iii) will not be derived otherwise than from remuneration,
interest, dividends, dividends on shares in any [perma- nent] mutual building society or rental from the letting
45 of fixed property.". (2) Subsection (1) shall come into operation on the date of
commencement of the Building Societies Act, 1986 (Act No. 82 of 1986).
10. (1) Paragraph 7 of the Seventh Schedule to the principal 50 Act is hereby amended-
( a) by the substitution for item (a) of subparagraph ( 4) of the following item:
" (a) as respects each such month, be an amount deter- mined in accordance with the following scale, hav-
No.10453 13
Act No. 108, 1986
Amendment of section 64C of Act 58 of 1962, as inserted by section 20 of Act 95 of 1967 and amended by section 15 of Act 76 of 1968, section 36 of Act 89 of 1969, section 21 of Act 52 of 1970, section 26 of Act 88 of 1971, section 20 of Act 90 of 1972. section 42 of Act 85 of 1974, section 22 of Act 1!3 of 1977. section 14 of Act 104 of 1979, section 22 of Act 104 of 1980, section 24 of Act 96 of 1981, section 21 of Act 91 of 1982, section 34 of Act 94 of 1983, section 29 of Act 121 of 1984 and section 18 of Act 65 of 1986.
Amendment of paragraph 18 of 4th Schedule to Act 58 of 1962, as added by section 19 of Act 6 of 1963 and amended by section 28 of Act 90 of 1964, section 42 of Act88of1971, section 49 of Act 85 of 1974, section 19 of Act 104 of 1979 and section 26 of Act 65 of 1986.
Amendment of paragraph 7 of 7th Schedule to Act 58 of 1962, as added by section 46 of Act 121 of1984 and amended by
GOVERNMENTGAZETIE, 19 SEPTEMBER 1986 No. 10453 15
TAXATIONLAWSAMENDMENT ACT, 1986 Act No. 108, 1986
ing regard to the determined value of such vehicle section 30 of ~'T'::~--=~======~--------. Act 96 of 1985. and the engine capacity thereof:
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Determined value
0-R20000 R20 001 - R 25 000 R25 001 - R 30 000 R30 001 - R 35 000 R35 001 - R 40 000 R40 001 - R 45 000 R45 001 - R 50 000 R50 001 - R 55 000 R55 001 - R 60 000 R60 001 - R 65 000 R65 001 - R 70 000 R70 001 - R 75 000 R75 001 - R 80 000 RSO 001 - R 85 000 R85 001 - R 90 000 R90 001 - R 95 000 R95 001 - R100 000
Over R100 000
0- 1600cc
R 130 150 170 190 210 230 250 270 290 310 330 350 370 390 410 430 450 470
Value of private use
Engine capacity
1601- 2001- Over 2000cc 3000cc 3000cc
R R R 160 190 220 180 210 240 200 230 260 220 250 280 240 270 300 260 290 320 280 310 340 300 330 360 320 350 380 340 370 400 360 390 420 380 410 440 400 430 460 420 450 480 440 470 500 460 490 520 480 510 540 500 530 560
Provided that where the employee- . (i) bears the cost of all fuel used for the purposes
of the private use of the vehicle (including travelling between the employee's place of residence and his place of employment), the value of private use for each such month as determined in accordance with the foregoing provisions of this subparagraph shall be re- duced by an amount of R50;
(ii) bears the full cost of maintaining the vehicle (including the cost of repairs, servicing, lubri- cation and tyres ), the value of private use for each such month as determined in accordance with the foregoing provisions of this subpara- graph shall be reduced by an amount of R30; .ill!f!"; and
(b) by the substitution for subparagraph (6) of the fol- 20 lowing subparagraph:
"(6) Where more than one motor vehicle is made available by an employer to a particular em- ployee at the same time and the Commissioner is satisfied that each such vehicle was used by the
25 employee during the year of assessment primarily for business purposes, the value to be placed on the private use of all the said vehicles shall be deemed to be the value of the private use of the vehicle having the highest [determined value] value
30 of private use or such other vehicle as the Commis- sioner may direct: Provided that the preceding provisions of this subparagraph shall not apply where the provisions of subparagraph (7) or (8) are applied.".
35 (2) Subsection (1) shall come into operation on 1 September 1986.
11. Paragraph 15 of the Seventh Schedule to the principal Act is hereby amended by the addition to subparagraph (2) of the following item:
Amendment of paragraph 15 of 7th Schedule to Act 58 of 1962,
GOVERNMENTGAZETIE, 19 SEPTEMBER 1986 No.10453 17
TAXATIONLAWSAMENDMENTACf, 1986 Act No. 108, 1986
"(d) the cash equivalent of any taxable benefit determined under paragraph 7 in respect of any month or part of a month commencing on or after 1 September 1986.".
12. (1) Item 13 of Schedule 1 to the Stamp Duties Act, 1968, 5 is hereby amended by the substitution for the words preceding
the "Exemptions" of the following words: "Fixed deposit receipt, including any certificate or other in- strument whereby any fixed deposit is acknowledged or is expressed to have been received, deposited or paid:
10 If given for or in respect of any fixed deposit made with any bank, legally established build- ing society, mutual building society, company or association, whether corporate of unincor- porate: for every R200 (or part thereof) of the
15 amount of the fixed deposit and for every period of twelve months (or part thereof) for which the deposit is made . . . . . . . . . . . . . . . . . . . . 0 10
For the purposes of this item a share certificate issued in re- spect of any 'paid-up share' as defined in the Mutual Build-
20 ing Societies Act, 1965 (Act No. 24 of 1965), in any legally established mutual building society shall be deemed to be a fixed depos'it"'TeCeipt in respect· of a fixed deposit of an amount equal to the amount stated in the certificate, and such deposit shall be deemed to have been made for a
25 period of twenty-four months.". (2) Subsection (1) shall come into operation on the date of
commencement of the Building Societies Act, 1986 (Act No. 82 of 1986).
13. (1) Item 15 of Schedule 1 to the Stamp Duties Act, 1968, 30 is hereby amended by the substitution for paragraph (xi) of the
following paragraph: "(xi) a mutual building society;"
(2) Subsection (1) shall come into operation on the date of commencement of the Building Societies Act, 1986 (Act No. 82
35 of 1986). J
as added by section 46 of Act 121 of 1984 and amended by section 38 of Act 96 of 1985 and section 37 of Act 65 of 1986.
Amendment of Item 13 of Schedule I to Act 77 of 1968. as amended by section 12 of Act 92 of 1983.
Amendment of Item 15 of Schedule I to Act 77 of 1968, as substituted by section 13 of Act 89 of 1972 and amended by section 16 of Act 66 of 1973, section 21 of Act 88 of 1974, section 3 of Act 104 of 1976, section 20 of Act 114 of 1977, section 8 of Act 95 of 1978, section 8 of Act 102 of 1979, section 21 of Act 106 of 1980, section 9of Act 99 of 1981, section 7 of Act 87 of 1982, section 14 of Act 92 of 1983, section 11 of Act 118 of 1984, section 1 I of Act 81 of 1985 and section 5 of Act 71 of 1986.
14. (1) Section 10 of the Sales Tax Act, 1978, is hereby amen- Amendment of ded by the substitution for subsection (6) of the following sub- ~~:if;31~f~~78 , section: as amended by
40 "(6) Every vendor- section6of (a) who has been authorized by the Commissioner under. Act 111 of 1979 - and section 6 of
the proviso to subsection (2) to recover tax by including Act 99 of 1984.
GOVERNMENT GAZETTE, 19 SEPTEMBER 1986
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such tax as part of the price or amount charged by the seller to the purchaser, 2!:
(b) who is entitled to an exemption under section 6 (1) (g), shall, in respect of any enterprise carried on by him, be re- quired to display prominently at all entrances to the pre- mises in which the enterprise is carried on and at all points in such premises where payments are effected a notice, in such form as the Commissioner may prescribe, indicating that tax at the appropriate rate is included as part of the price or amount charged or that the vendor is entitled to such exemption, as the case may be.".
(2) Subsection (1) shall be deemed to have come into opera- tion on 4 July 1986.
15. (1) Section 11 of the Sales Tax Act, 1978, is hereby 15 amended-
( a) by the substitution for subparagraphs (aa) and (bb) of paragraph (i) of subsection (2) of the following subpa- ragraphs:
"(aa) in respect of the cancellation or termination of any 20 sale of goods by the vendor to the purchaser or
any financial lease or any rental agreement or any agreement for the rendering of~ taxable [services] service by the vendor to the purchaser or any agreement for the supply by the vendor to the pur-
25 chaser of board and lodgin!} or accommodation, if the consideration payable by the purchaser in re- spect of such sale, rental agreement, [services]~ able service, board and lodging or accommodation or the cash value of the leased property under such
30 financial lease, as the case may be, has been in- cluded in any taxable value taken into account under this subsection in respect of the said enter- prise, wh~ther for the tax period or any previous tax period; or
35 (bb) by way of a reduction of the consideration payable by the purchaser in respect of any sale of goods, rental agreement, taxable service, board and lodg- ing or accommodation or the cash value of any leased property let under a financial lease, in conse-
40 quence of any defect in the goods so sold or let o in such taxable service, board and lodging, accom- modation or leased property, if the full amount o such consideration or cash value, as the case may be, has been included in any taxable value taken
45 into account under this subsection in respect of the said enterprise, whether for the tax period or an previous tax period"; and
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(b) by the insertion after subsection ( 4) of the following subsection:
"(4A) Where any registration certificate issued to a ven- dor under section 12 has in terms of the provisions of section 13 (9) been surrendered to or seized by the Commissioner for cancellation, the vendo shall furnish the Commissioner with details of any trading stock held by the vendor and not disposed of by him on the date of surrender of such certi- ficate together with the cost thereof and the ven- dor shall, in the manner prescribed by section 17
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Act No. 108, 1986
Amendment of section 11 of Act 103 of 1978, as amended by section 7 of Act 111 of 1979, section 2 of Act 40 of 1982, section 6 of Act 95 of 1983, section 7 of Act 99 of 1984 and section 4 of Act 70 of1986.
GOVERNMENT GAZETTE, 19 SEPTEMBER 1986
TAXATION LAWS AMENDMENT ACf, 1986
(3), pay tax in respect of the taxable value of sue~ trading stock as if such stock had been disposed o at such cost under a sale concluded by him on the date of surrender of such certificate.".
5 (2) The amendments effected by paragraph (b) of subsection (1) shall be deemed to have come into operation on 4 July 1986.
16. (1) Section 16 of the Sales Tax Act, 1978, is hereby amended by the substitution for subparagraph (iii) of paragraph (a) of subsection (1) of the following subparagraph:
10 "(iii) Where a vendor dies or his estate is sequestrated or he ceases to carry on the enterprise or he disposes of the en- terprise as a whole or any part interest therein or, where the vendor is a partnership, the partnership is dissolved, whether by operation of law or otherwise, or his registration
15 certificate has been surrendered for cancellation under sec- tion 13 (9), there shall, unless the Commissioner otherwise directs, be a tax period ending on the date of the vendor's death or the date of the sequestration of the vendor's estate or the date on which the vendor ceases to carry on the en-
20 terprise or on the day before the date on which the disposal of the enterprise or the interest therein takes effect or 2!! the day before the date from which the partnership is dissolved or the date on which the vendor's registration certificate is surrendered for cancellation;".
25 (2) The· amendments effected by subsection (1) shall be deemed to have come into operation on 4 July 1986.
No.10453 21
Act No. 108, 1986
Amendment of section 16 of Act 103 of 1978, as amended by section 4 of Act lOS of 1980.
17. This Act shall be called the Taxation Laws Amendment Short title. Act, 1986.