Revenue Laws Amendment Act
VAN DIE REPUBLIEK VAN SUID-AFRIKA
REPUBLIC OF SOUTH AFRICA
GOVER~ENT GAZETTE As 'n Nuusblad by die Poskantoor Geregistreer · Registered at the Post Office as a Newspaper
VoL. 73.]
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KAAPSTAD, 16 JULIE 1971.
CAPE TOWN, 16TH JULY, 1971. . . [No. 3208.
DEPARTEMENT VAN DIE EERSTE MINISTER. DEPARTMENT OF THE PRIME MINISTER.
No. 1227. 16 Julie 1971. No. 1227. 16th July, 1971.
Hierby word bekend gemaak dat die Staatspresident sy goedkeuring geheg bet aan die onderstaande Wet wat hierby 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. 92 van 1971: Wysigingswet op Inkomstewette, 1971. No. 92 of 1971: Revenue Laws Amendment Act, 1971.
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.
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Act No. 92, 1971
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Amendment of section 1 of Act 32 of 1948, as amended by section 35 of Act 77 of 1968.
Amendment of section 12 of Act 40 of 1949, as substituted by section 8 of Act 103 of 1969 and amended by
. section 2 of · Act 72 of 1970.
GOVERNMENT GAZETIE, 16m JULY, 1971
i , ,~ REVENU~ lAWS AMENDMENT ACT, 1971. \.;, . '
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.ACT To amend the definition of "stockbroker" in section 1 of the
Marketable Securities Tax Act, 1948; to amend the provisions of section 12 of the Transfer Duty Act, 1949, relating to the production to a registration officer of proof of payment of transfer duty; to amend the Estate Duty Act, 1955, so as to effect textual_changes in sections 1 and 17 of that Act, and to amend the provisions of that Act relating to amounts due and recoverable under certain insurance policies, the consideration paid or given in respect of shares in a family company, the determination of the dutiable amount of an estate, the maximum deduction permitted in respect of local registered stock, local bonds and debentures issued by the Land and Agricultural Bank of South Mrica, the right· of: an executor to recover estate ·duty. from the person liable therefor; and the rates of estate duty; to amend the provisions of section 8 of the Diamond Export Duty Act, 1957, relating to the mauner in which a diamond may be removed or exported from the Republic; to amend. the. Licences Act, 1962, so as. to effect textual changes in the First Schedule and the Second Schedule thereto; to amend the provisions of the Stamp Duties Act, 1968, relating to the stamp duty payable in respect of the registration of transfer of marketable securities; and to provide for incidental matters.
(Afrikaans text signed by the State President.) (Assented to 18th June, 1971.)
BE IT ENACTED by the State President, the Senate and the House of Assembly of the Republic of South Mrica,
as follows:- · ·
1. (1) Section 1 of the Marketable Securities Tax Act, 1948, is hereby amended by the substitution for the definition of "stockbroker" of the following definition:
"'stockbroker' means any person . who carries on the · · business of buying and selling marketable securities
on behalf of other persons, and includes any merchant bank registered as such under the Banks Act, 1965 (Act No.2~ of 1965).:'. ... . ,
(2) Subsection (1) shall come into operation on a date to be fixed by the State President by proclamation in the Gazette.
·, 2. Section 12 ·of the Transfer Duty Act, 1949, is hereby amended by the substitution for subsection (1) of the following subsection: '
"(1) No registration officer shall make any record in his deeds registry of an acquisition of property unless there has been produced to him proof, other than a receipt for a deposit on account of duty-,- · ·
: , ' J I l ' I ' • ; , I . ~ ' ! I (a) that any duty payable under this Act or any other law
has been paid in respect of the acquisition in question; and ..
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4 No. 3208
Act No, 92, 1971
Amendment of section 1 of Act 45 of 1955, as amended by section 1 of Act 59 of 1957, section 1 of Act 65 of 1960 and section 7 of Act 77 of 1964.
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GOVERNMENT GAZETTE, 16m JULY, 1971
REVENUE LAWS AMENDMENT ACI', 1971.
(b) where the property is in terms of section 11 of the Sale of Land on Instalments Act, 1971, to be trans- ferred from the registered owner direct to a person who acquired the property under a cession of a purchaser's right to claim transfer of the property from a seller thereof, that any duty payable under this Act or any other law has been paid in respect of the acquisition of the property by the purchaser from the seller, and in respect of each subsequent acquisition of the property by any person under such a cession.".
3. Section 1 ofth.e Estate Duty Act, 1955, is hereby amended-
( a) by the 4eletion in subsection (I) of the definition of ..... administration and distribution account";
. (b) by the substitution in the ·said . subsection for the ·, · definition of "duty'~ of the· following definition: '
"'duty' means estate duty payable under this Act;";.
(c) 'by the substitution in the said subsection for the definition of "executor" of the following definition: "'executor' means any person to whom letters of
administration or of executorship have been granted by a Master in respect of the estate of a deceaseq person under any law relating to the administration of estates, or whose appointment as assumed executor of such an estate· has been endorsed by a Master under such law; or who liquidates or distributes such an estate in pur-
, suance of a direction of a Master, and includes a . person acting or authorized to act under letters of
. administration or of executorship granted outside the Republic but signed and sealed by a Master
· for .use within the Republic and, in any case where the estate is not required to be administered under the supervision of the Master, the person ad- ministering the estate;";
(d) by the insertion in the said ~ubsection after the defini- tion of "family company" of the following definition: '"liquidation· and distribution account' means the
account required to be. rendered by an executor to a Master in accordance ·with section 35 of the Administration of Estates Act, 1965 (Act No. 66 of 1965), · or· where ·the provisions ·of section 68 of the Administration of Estates Act, 1913 (Act No. 24 of 1913), apply, the account required to be rendered by an executor to aMaster in accordance with the last-mentioned section;"; · ·
(e) by the substitution in the definition of "Master~' in the said subsection for the expression "1913" of the expression "1965";
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(f) by the substitution in the Mrikaans text of subsection · (2) for the word "magistraat" wherever it occurs of the :word "landdros"; and · · · '
(g)· by the substitution for subparagraph (iii) of paragraph (b) ofsubsection(2) of the following subparagraph:·
"(iii) Fees and travelling expenses shali be paid by the , estate of the. deceased to any. such valuator in
accordance with the tariffs applicable . to the valuations of property by appraisers appointed
, under the Adi¥inistration of Estates Act, 1965.".
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6 No. 3208
Act No. 92, 1971
Amendment of section 3 of Act 45 of 1955, as amended by section 2 of
· Act 65 of 1960, section 8 of Act 77 of 1964 and section 2 o Act 81 of 1965.
Amendment of section 4 of Act 45 of 1955, as amended by section 2 of Act 59 of 1957, section 3 of Act 65 of 1960, section 9 of
GOVERNMENT GAZETIE, 16m JULY, 1971.
REVENUE LAWS AMENDMENT ACI', 1971.
4. (I) Section 3 of. the. Estate Duty Act,_ 1955, is hereby . amended- .·
·(a) by the substitution for paragraph (a) of subsection (3) - ·of the following paragraph:
','(a) · so much of any amount due and recoverable under any ·policy of insurance. which is a 'domestic policy' as defined in section l of the Insurance Act,
_ 1943 (Act No. 27 of 1943), upon the life of the deceased as exceeds the aggregate amoun.t of any premiums or consideration proved to the satis- faction of the Secretary to have been paid by any person who is entitled to the amount due under the policy, together with interest at six per cent per annum calculated upon such premiums or consideration from the ·date of payment to the date of death: Provided that the foregoing provisions of this paragraph shall not apply in respect of any amount due and recoverable under a policy of insurance, if-
(i) the amount due under such policy is recover- able by the surviving spouse or child of the deceased under a duly registered ante-nuptial or post-nuptial contract; or
(ii) except where the provisions of paragraph (i) of this proviso apply, the Secretary is satisfied and remains satisfied that such policy was not effected by or at the instance of the deceased, that no premium on such policy was paid or
. borne by the deceased, that no amount due or recoverable under such policy has been or
_ will_ J:>e paid into the estate of the deceased and that no such amount has been or will
. be paid to, or utilized for the benefit of, any relative of the deceased or any person who was wholly_ or . partly dependent for his maintenance upon the , deceased or any company . which was at any time a family company in relation to the deceased;"; and
. . (b) by the substitution for paragraph (d) of subsection (4) _ ·. ?fthefollowing paragraph:
"(d) · any consideration,· whether in cash or otherwise and whether or not described as a premium, paid or given by the deceased in respect of shares
-allotted or issued to him by any company which immediately. prior to or at the .time of the allot- ment· or issue of such shares, or at any time. thereafter, was or became a family company in relation to the deceased, shall to the extent that such· consideration exceeds. the nominal value of
· such shares, be deemed to be property donated . _ by the deceased to such company.". . (2) The amendments effected by subsection (l) shall apply in
respect of~th~ estate of any person who died or dies on or after th~. first day of April, 1971. . , · _ · . . .
. 5. (I) Section 4 .of the Estate. Duty Act, 1955, is hereby amended.,- · • · -
·. (a) by the substitution for the words preceding paragraph (a) of the following words: ·
"Net value 4. The net value of any estate shall be of an estate.. determined by making • the following
deductions from the total · value of all
8 No. 3208
Act No. 92, 1971
Act 71 of 1961, section 9 of Act 77 of 1964, section 3 of Act 81 of 1965 and section 2 of Act 94 of 1967. ·
Insertion of section 4A in Act 45 of 1955.
Amendment of section 13 of Act 45 of 1955.
GOVERNMENT GAZETIE, 16m JULY, 1971'
REVENUE LAWS AMENDMENT ACT, 1971.
property included therein in accordance with section 3, that is to say-"; and
(b) by the substitution for pa~agraph (/) ofthe following paragraph: ·
"(/) so much of the aggregate amount of the value or the proceeds- ·
' . . (i) of any local registered stock issued in terms of
section 5 (I) (a) of the General Loans Act, . 1961 (Act No. 16 of I96I), or any similar pro-
, vision of any previous Act of Parliament;
'(ii) of any local bonds. (excluding bonds the interest on which is exempt from income tax
, in terms of section I 0 of the Income Tax Act, I962 (Act No. 58 of I962)) issued in. the Republic in terms of paragraph (d) of section 5 (I) of the General Loans Act, I96I, and of any local debentures issued in the Republic in terms of that parag~aph; and
(iii) of any debentures issued by the Land and Agricultural Bank of South Africa,
included as property of the deceased, as does not exceed the difference between the sum of fifty thousand rand and the amount allowed under paragraph (k) ;".
(2) The amendments effected. by subsection (I) shall apply in respect of the estate of any person who died or dies on or after the first day of April, I971.
6. (I) The following section is hereby inserted in the Estate Duty Act, 1955, after section 4: . "Dutiable 4A. The dutiable amount of any estate shall be amo~~ of determined,by making the following deductions from an es e; the net value of the estate as determined in accor-
dance with section4, that is to say- (a)' an amount of twenty-five thousand rand; (b) an amount of twenty-five thousand rand in
respect of every child of the deceased who survives him; . .
(c) an amount of twenty-five thousand rand in respect of every· child of the deceased who predeceased him and left any ·descendant by blood. (other than a. descendant who is an adopted child of the deceased as contemplated in the' definition of· 'child' in section I) sur- viving the deceased or a spouse ·surviving the deceased who had not remarried on or· before the date of death of the deceased; and
(d) an amount of twenty-five thousand rand in any case in which the deceased is survived by his spouse.".
· (2) The amendment effected by subsection (1) shall apply in respect of the estate of any person who died or dies on or after the first day of April, I971.
-7. (I) Section I3 of the Estate Duty Act, I955, is hereby amended-
( a) by the substitution for subsection (I) of the following subsection:
"(I} Every executor who is required to pay duty in respect of any property referred to in paragraph (a) (i}, or in the proviso to paragraph (b) (i) or (b) (iA), or in paragraph (b) (ii}, of section 11, shall be entitled to
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10 No. 3208
Act No. 92, 1971
Amendment of section 17 of Act 45 of 1955.
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Substitution of First Schedule to Act 45 of 1955, as substituted by section 8 of Act 81 of 1965. and amended by _ section 1 of a Act 75 of 1968.
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GOVERNMENT GAZETIE, 16m JULY,;l971~
REVENUE LAWS AMENDMENT ACf, 1971.,.
. recover from the person liable therefor the duty attributable to such property."; and .
. (b)·, by the substitution for subsection (2) of the following · subsection: · · · · · · · · · ·
· "(2). The duty attributable to any such property shall be a sum which bears to the full duty payable in respect ofthe estate (before the deduction in accordance withthe provisions of section 16 of any amount in respect of transfer duty or, donations tax) the same ratio as that portion of the net value of the estate (as determined under section 4) which is attributable to the inclusion in the estate, of the value of the said property, bears to the net value of. the estate as so determined,
. reduced, in any case in which there is, in accordance with the said section 16, de.ducted froi:n the duty payable in rf!spect of. the ·estate, .any amount of transfer duty or donations tax paid in respect of any property included in the estate which has accrued to the person liable for the duty attributable to that property, by the
. amounfofthe transfer duty cir donations tax so paid.". ·. (2) The amendments effected by subsection (1) shall apply in
respect of the estate of any person who. died. or dies on or after the:: first day of.April, 1~,7_1.. . r · • i. ; .·,
8. Section 17 ofthe Estate. Duty Act, 1955, is. hereby amended by the substitution for the word "administration'.' of the word "liquidati9n:•.: .. ~ .. · , , . . · · · · • , ·
.. 9. (1) The f~ll~~idg Schedule is ·he~eby ;~bstituted for the First Schedule to the Estate Duty Act, 1955: · · · · · _,.,. ,
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12 No. 3208
Act No. 92, 1971
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GOVERNMENT GAZETIE, 16TH JULY, 1971
REVENUE LAWS AMENDMENT ACT, 1971.
"First Schedule.
RATES OF EsTATE DUTY.
Dutiable Amount of Estate
Where the dutiable amount- does not exceed RIO 000 10 per cent on the dutiable
amount; exceeds RIO 000 but does not exceed Rl 000 plus IS per cent on
the amount by which the dutiable amount ex- ceeds RIOOOO;
R25 000 .. .. ·" .. R50000 R3 250 plus 17t per cent on the amount by which the dutiable amount ex- ceeds R25 000;
R50000 , .. R75000 R7 625 plus 20 per cent on the amount ·by which the dutiable amount ex- ceeds R50 000; .. R75000 , , 'RlOOOOO R12 625 plus 22! per cent onthe amount by which the dutiable amount ex- ceeds R75 000;
, RIOOOOO .. .. .. Rl50000 RIS 250 plus 25 per cent on the amount by which the dutiable amount ex- ceeds RlOO 000;
Rl50000 , .. .. R200000 R30 750 plus 27! per cent on the amount by which the dutiable amount ex- ceeds R150 000;
R200000 .. .. R250000 R44 500 plus 30 per cent on the amount by which the dutiable amount ex-
R250000 ,; .. .. .. R300000 ceeds R200 000; R59 500 plus 32! per cent on the amount by which the dutiable amount ex- ceeds R250 000;
R300000 R 75 750 plus 35 per cent · on the amount by which the dutiable amount ex- ceeds R300 000:
Provided that where duty becomes payable upon the value of any movable · or immovable property or on a value deterrruned by reference to the value of any movable or immovable property, and duty has, upon the death of any person (hereinafter referred to as the first-dying person), who died within ten years prior to the death of the deceased, become payable upon the value of that movable or immovable property or upon a value determined by reference to the value of that movable or immovable property (or any movable or immovable property for which the Secretary is satisfied that that movable or immovable property has been substituted), the duty attributable to the value of that movable or immovable property or, as the case may be, the value determined by reference to the value of that movable or im- movable property, but not exceeding (in either case) an amount equal to the value on which duty has become payable on the death of the first-dying person, shall be reduced by a percentage according to the following scal6-
if the deceased dies within two years of the death of the first-dying person • • • • • • • • • 100 per cent
if the deceased dies more than two years, but not more than four years after the death of the first-dying person • . • • • • • • • • • • • 80 per cent
if the deceased dies more than four years, but not more than six years after the death of the first-dying person • • • • • • • • • • • • • 60 per cent
if the deceased dies more than six years, but not more than eight years after the death of the first-dying person • • • • • • • • • • • • • 40 per cent ·
if the deceased dies more than eight years, but not more than ten years after the death of the first-dying person • 20 per cent
subject to a maxim~ reduction eitual to so m~ch of the duty previously payable upon the death of the first-dying person as is attributable to the value of that movable or immovable property or, as the case may be, to an amount equal to the value determined by reference to the value of that movable or immovable property, and as is proved to the satisfaction of the Secretary to have been borne by the deceased.".
14 No. 3208
Amendment of section 8 of Act 16 of 1957, as amended by section 20 of Act 77 of 1962.
Amendment of Item 2 of First Schedule to Act 44 of 1962, as substituted by section 18 of Act 77 of 1964.
Amendment of Item 14 of Part I of Second Schedule to Act 44 of 1962.
Amendment of section 23 of Act 77 of 1968, as amended by section 20 of Act 103 of 1969.
Short title.
GOVERNMENT GAZEITE, 16m JULY, 1971
REVENUE LAWS AMENDMENT Acr, 1971.
(2rThe·amendment~effected"by subsection (1) shall apply in respect of the estate of any person who died or dies on or after the first day of April, 1971.
10. Section 8 of the Diamond Export Duty Act, 1957, is hereby amended by the addition to paragraph (b) of subsection (1) of the following proviso: ·
"Provided that the Commissioner of the South African Police may, if he is satisfied that exceptional circumstances exist with regard to the intended removal or export from the Republic of any diamond, authorize the removal or export of such diamond from the Republic in such other manner as he may deem fit.".
11. Item 2 of the First Schedule to the Licences Act, 1962, is hereby amended by the substitution for paragraph (5) of the Exemptions of the following paragraph:
"(5) Any board of executors or trust company licensed under the provisions of Item 6 of Part II of the Second Schedule to this Act.". · ·
12. Item 14 of Part I of the Second Schedule to the Licences Act, 1962, is hereby amended by the substitution for the word "kaffircorn" of the words "grain sorghum.".
13. Section 23 of the Stamp Duties Act, 1968, is hereby amended-
. (a) by the substitution in subsection (1) for. the definition of "deed" and "declaration" of the following defini- tion:
"'deed' or 'declaration' means a deed or declaratiOit made, signed and dated with the true date of each signature by the parties to a transaction for the sale or disposal of any marketable security or'by their respective agents, setting forth such particu- lars of the transaction as may be required for the determination of liability for_ duty and fuH and true particulars of such marketable security and of any consideration passing or, if_ there is no consideration passing, of the market value of the marketable security on the date of the transaction or, in any case to which the provisions of sub-
. section (1A) apply, on the date referred to in that subsection;"; and · .
~b) by the insertion after the sa~d subsection of the foHow- ing subsection: · . · . ' ·. "(1A) Where any marketable security devolves upon any person under the will. of a deceased person or by - intestate succession, or where any- person becomes entitled to any marketable security by .virtue of a re-distribution of the assets of the estate of a deceased person during the course of the liquidation of such estate, such marketable security shaH, for the purposes of duty payable under Item 15 (3) of Schedule I in
· respect of the registration of transfer of such market- able security from the estate of the deceased person
. to the person upon whom the marketable security so devolves· or who becomes entitled thereto as afore- said, be deemed to have been disposed of to the last- mentioned person upon the date of death of the deceased person.". · -
14. This Act shaH be called the Revenue La~s Amendm~nt Act, 1971. · · ·