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REPUBLICOF SOUTH AFRI
STAATSKOERANT
VAN DIE REPUBLIEK VAN SUID-AFRIKA
Registered at the Post Ofice as a NewspaperAs ‘n Nuasblad by die Poskantoor Geregistreer
CAPE TOWN, 19 JULY 2000
KAAPSTAD, 19 JULIE 2000
No. 21390
I
THE PRESIDENCY I
No. 744. 19 July 2000”
I
It is hereby notified that the President has assented to the
following Act which is hereby published for general
int_ormation:—
No, 30 of 2000: T~xation Laws Amendment Act, 2000.DIE
PRESIDENSIE
No. 744.19 Julie
2000”
Hierby word bekend gematik dat die President sy goed-
keuring geh~g het aan die onderstaande Wet wat hierby ter
algemene inhgting gepubliseer word:—
No.
30 van 2000: Wysigingswet op Belastingwette, 2000.”

2 No. 2 I 390 GOVERNMENT GAZETl_E. 19 JULY 2000
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT. 2000
GENERAL EXPLANATORY NOTE:
[ 1 Words in bold type in square brackets indicate omissions from
existing enactments.
Words underlined with a solid line indicate insertions in
existing enactments.
(English text siglld h>, the President.}
(Assented t[) 16 Ju/Y 2000. )
ACT
To amend the Marketable Securities Tax Act, 1948, so as to withdraw an
exemption; and to further regulate the procedures relating to inquiries; to amend
the Transfer Duty Act, 1949, so as to withdraw certain exemptions; to further
regulate an exemption; to provide for a further exemption; to further regulate the
procedures relating to inquiries; and to effect certain textual amendments; to
amend the Estate Duty Act, 1955, so as to insert a definition; to effect certain textual
amendments; to further regulate a deduction; to withdraw certain deductions; to
further regulate the procedures relating to inquiries; and to further regulate
penalties which may be imposed in respect of
offences; to amend the Income Tax
Act, 1962, so as to
fix the rates of normal tax payable by persons other than
companies in respect of taxable incomes for the years of assessment ending on 28
February 2001 and 30 June 2001, and by companies in respect of taxable incomes
for the years of assessment ending during the period of 12 months ending on 31
March 2001; to delete certain obsolete provisions; to further define certain
expressions; to further regulate the secrecy provisions; to increase certain tax
rebates; to further regulate the rebate in respect of foreign taxes on income; to
effect certain consequential amendments; to further regulate the provisions in
respect of the recoupment of deductions and allowances; to further regulate the
taxation of investment income from foreign sources; to further regulate the
taxation of investment income of controlled foreign entities; to provide for the
taxation of foreign dividends; to further regulate the tax exemption of public
benefit organisations; to withdraw certain exemptions; to further regulate the
exemption in respect of dividend income: to provide for a deduction in respect of
restraint of trade payments; to further regulate the deductions in respect of assets
which have been scrapped; to provide for a deduction in respect of the depreciation
of certain pipelines, transmission lines and railway lines; to further regulate the
deduction of donations to certain public benefit organisations;
to repeal obsolete
sections; to further regulate the provisions relating to the set-off of assessed losses;
to withdraw the basis of valuation of trading stock consisting of marketable
securities whereunder the last item of trading stock acquired is deemed to be the
first item disposed ok to further regulate the provisions in respect of deductions not
allowed in the determination of taxable income; to further regulate the provisions
prohibiting double deductions; to further regulate the deduction relating to the
acquisition and disposal of trading stock; to provide for a limitation of certain
deductions so as to match expenditure to the income, goods or benefit received
relating to such expenditure; to provide for the manner of taxation of public benefit
organisations; to further regulate certain exemptions relating to donations tax; to
further regulate the levy of Secondary Tax on Companies in consequence of the
taxation of foreign dividends; to further define a definition relating to amounts

4 No. 2139(I GOVERNMENT GAZETTE, 19 JULY 2000
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT. 2000
distributed that are deemed to be dividends for the purposes of Secondary Tax on
Companies; to further regulate the provisions relating to the furnishing of returns;
to further regulate the duty of companies to furnish returns in consequence of the
taxation of foreign dividends: to further regulate the procedures relating to
inquiries; to further regulate the publication of judgments or decisions of the
Special Court for hearing of income tax appeals; to further regulate the power to
appoint agents so as to also require the payment of interest and penalties from
moneys held by such agents; to provide that employees’ tax be deducted from
–
remuneration paid to personal service companies and personal service trusts; to
further define expressions for the purposes of the Fourth Schedule; to further
regulate the issuing of certificates of exemption for employees’ tax purposes; to
further define an expression for the purposes of the Seventh Schedule; and to
further regulate the determination of the value of any fringe benefit relating to
holiday accommodation; to amend the Customs and Excise Act, 1964, so as to
further define an expression in consequence of tbe introduction of an air passenger
tax; to provide for the introduction of an air passenger tax; to provide that the
Minister of Finance may publish in a notice certain agreements or protocols which
shall be enacted into law; to make provision for a rebate of fuel levy on imported
goods; to make provision for a refund of duty in respect of imported goods entitled
to a preferential rate of duty; to further regulate the payment of interest; to amend
Schedule No. 1 to the said Act and the effective date thereofi to provide for the
continuation of amendments to the Schedules; and to amend the long title of the
said Act; to amend the Stamp Duties Act, 1968, so as to withdraw certain
exemptions; to further regulate certain exemptions relating to public benefit
organisations; to provide for an exemption; to provide that any amount of stamp
duty or penalty which does not exceed R400 may be denoted by way of adhesive
stamps; to further regulate penalties which may be imposed in respect of offences;
to further regulate the procedures relating to inquiries; to amend Schedule 1 to the
said Act to withdraw certain exemptions; to delete the reference to obsolete
provisions; and to effect certain textual amendments; to amend the Eskom Act,
1987, so as to provide for the taxation of the receipts and accruals of Eskom and its
subsidiaries; to amend the Value-Added Tax Act, 1991, so as to further define
certain expressions; to include certain services in the zero-rating provisions; to
create a new category of vendors for the purposes of accounting for tax; to further
regulate the period within which a return has to be submitted; to provide for
agreed assessments; to extend the circumstances in which the Commissioner may
call for security; and to further regulate the procedures relating to inquiries; to
provide for a special exemption from value-added tax; to amend the Income Tax
Act, 1993, so as to delete a reference to an obsoiete provision; to amend the Tax on
Retirement Funds Act, 1996, so as to effect certain consequential amendments; and
to amend the formula for determining the income of a fund to make provision for
the taxation of foreign dividends; to amend the
Uncertificated Securities Tax Act,
1998, so as to withdraw certain exemptions; and to further regulate the procedures
relating to inquiries; to amend the DemutuaIisation Levy Act, 1998, so as to provide
for exemption of the Umsobomvu Fund from income tax; to amend the Eskom
Amendment Act, 1998, so as to regulate the provisions relating to the income tax
exemption of Eskom; to amend the Skills Development Levies Act, 1999, so as to
further regulate the exemption of certain public benefit organisations carrying on
a public benefit activity of a religious or charitable nature; to effect certain
consequential amendments; and to further regulate certain matters relating to
representative taxpayers; and to provide for matters connected therewith.

6 No. 21390 GOVERNMENT GAZEITE, 19 JULY 2000
Act h’o. 30,2000 TAXATION LAWS AMENDMENT ACT, 2000
B
E IT ENACTED by the Parliament of the Republic of South Africa, as
follows:
Amendment of section 3 of Act 32 of 1948, as amended by section 12 of Act 64 of
1960, section 36 of Act 77 of 1968, section 2 of Act 88 of 1974, section 2 of Act 114
of 1977, section 1 of Act 95 of 1978, section 2 of Act 106 of 1980, section 1 of Act 87 5
of 1982, section 1 of Act 92 of 1983, section 1 of Act 118 of 1984, section 1 of Act 81
of 1985, section 1 of Act 87 of 1988, section 1 of Act 136 of 1992, section 1 of Act 97
of 1993, section 3 of Act 37 of 1996, section 2 of Act 27 of 1997, section 1 of Act 30
of 1998, section 1 of Act 32 of 1999 and section 2 of Act 53 of 1999
1.(1 ) Section 3 of the Marketable Securities Tax Act, 1948, is hereby amended by the 10
deletion of subparagraph (vii) of paragraph (c)of subsection (3).
(2) Subsection (1) shall be deemed to have come into operation on 1 January 2000.
Amendment of section 9C of Act 32 of 1948, as inserted by section 2 of Act 46 of
1996
2. Section 9C of the Marketable Securities Tax Act, 1948, is hereby amended— 15
(a) by the substitution for paragraph
(b) of subsection (8) of the following
paragraph:
“(b) have the same powers— .
~ to enforce the attendance of witnesses and to compel them to give
evidence or to produce evidential material;
@ 20
@ relating to contempt committed during the proceedings,
as are vested in a President of the Special Court contemplated in section
83 of the Income Tax Act,
1962, and for those purposes sections 84 and
85 of that Act shall apply
mutatis mutandis; and”;
(b) by the substitution for subsections (1 1), (12) and (13) of the following 25
subsections:
“(11 ) Any person whose affairs are investigated in the course of an
inquiry contemplated in this section, shall be entitled to be present
[throughout] ~ the inquiry durin~ such time as his affairs are
investigated, unless on application by the person contemplated in 30
subsection (1), the presiding officer directs otherwise on the ground that
the presence of the person and his representative, or either of them,
would be prejudicial to the effective conduct of the inquiry.
(12) Any person contemplated in subsection (9) has the right to [a
representative of his choice] have a
legal representative present during 35
the time that he appears before the presiding officer.
(13) An inquiry contemplated in this section shall [not be public] &
private and confidential and the presiding officer shall at any time on
application [ofl & the person whose affairs are investigated or any other
person giving evidence or the person contemplated in subsection (1), 40
exclude from such inquiry or require to withdraw therefrom, all or any
persons whose attendance is not necessary for the inquiry.”;
(c) by the addition of the following subsections:
“(15) Subject to subsection (16), the evidence given under oath or
solemn declaration at an inquiry may be used by the Commissioner in
45
any subsequent proceedings to which the person whose affairs are
investigated is a party or to which a person who had dealings with such
person is a party.
(16) (a) No person may refuse to answer any question during an
inquiry on the grounds that it may incriminate him.
50
(b) No incriminating evidence so obtained shall be admissible in any
criminal proceedings against the person giving such evidence, other than
in proceedings where that person stands trial on a charge relating to the
administering or taking of an oath or the administering or making of an
affwrnation or the giving of false evidence or the making of a false 55
statement in connection with such questions and answers.

8 No. 2 139(J GOVERNMENT GAZEmE, 19 JULY 2000
Act No. 30, 2000 TAXATION LAWS AMENDMENT ACT. 2000
( 17) An inquiry in terms of this sec[ion shall Proceed notwithstanding
the fact
(hot any civil or criminal proceedings are pending or contem-
plated against or involving any person contemplated
in subsection (6)(c)
or any witness or potential witness or any person whose affairs may be
investigated
in the course of such inquiry.”. 5
Amendment of section 9 of Act 40 of 1949, as amended by section 3 of Act 31 of
1953, section
12 of Act 80 of 1959, section 3 of Act 70 of 1963, section 3 of Act 77 of
1964, section 1 of Act 81 of 1965, section 7 of Act 103 of 1969, section 2 of Act 89 of
1972, section 3 of Act 66 of 1973, section 5 of Act 88 of 1974, section 77 of Act 54 of
1976, section 2 of Act 95 of 1978, section 6 of Act 106 of 1980, section 2 of Act 99 of 10
1981, section 2 of Act 118 of 1984, section 3 of Act 81 of 1985, section 3 of Act 86 of
1987, section 4 of Act 87 of 1988, section 36 of Act 9 of 1989, section 1 of Act 69 of
1989, section
79 of Act 89 of 1991, section 6 of Act 120 of 1992, section 4 of Act 136
mf 1992, section 5 of Act 97 of 1993, section 2 of Act 37 of 1995 and section 3 of Act
32 of 1999 15
3. ( 1 ) Section 9 of the Trmsfer Duty Act, 1949, is hereby amended—
(a) by the deletion of paragraph (bA) of subsection (1);
(b) by the substitution for the words preceding the proviso to paragraph (c) of
subsection ( 1 ) of the following words:
“a [religious, charitable or educational institution of a public
20
character] public benefit organisation which is exempt from tax in terms
of section [lO(l)@] 10(1 )(cN) of the Income Tax Act, 1962 (Act No. 58
of 1962), in respect of property acquired [for religious, charitable or
educational purposes exclusively] by such public benefit organisation
the whole, or substantially the whole, of which will be used for the 25
purposes of one or more public benefit activity carried on by such public
benefit organisation:”;
(c) by the deletion of paragraph (j) of subsection (1);
(d) by the insertion after subsection ( 1 ) of the following subsection:
“~ 1A) No duty shall be payable in respect of the registration of any 30
property transferred by any
public benefit organisation which is exempt
from tax in terms of the provisions of section 10(
l)(cN) of the Incom&
Tax Act, 1962, to any other entity which is controlled by that public
benefit organisation in order to comply with the provisions of the proviso
to subsection (3) of section 30 of that Act;”: 35
(e) by the deletion of subsection (1 3); and
(1) by the deletion of subsection ( 14). (2) (a) Subsection (I )(a) shall be deemed to have come into operation on 1 January
2000.
(b) Subsection (1 )(b), (c), (d) and (e) shall come into operation on a date fixed by the 40
President by proclamation in the Gazette.
Amendment of section
llD of Act 40 of 1949, as inserted by section 5 of Act 46 of
1996
4. Section 11 D of the Transfer Duty Act, 1949, is hereby amended—
(a) by the substitution for paragraph (b) of subsection (8) of the following 45
paragraph:
“(b) have the same powers—
Q to enforce the attendance of witnesses and to compel them to give
evidence or to produce evidential
materiid; and
f@ relating to contempt committed during the procccdin~s. 50
as are vested in a President of the Special Court contemplated in section
83 of the Income
Tax Act, 1962, and for those purposes sections 84 and
85 of that Act
shall apply rnu[atis nzula)~dis: and”;
(b) by the substitution for subsections (11), ( 12) and ( 13) of the following
subsections: 55
“(11 ) Any person whose atioirs are investigated in the course of an
inquiry contemplated in this section,
shall be entitled to be present
[throughout] u the inquiry during such time as his at~airs are
investigated, unless on application
by the person contemplated in

10 No. 21390
GOVERNMENT GAZEITE, 19 JULY 2000
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT. 2000
subsection (1), the presiding officer directs otherwise on the ground that
the presence of the person and his representative, or either of them,
would be prejudicial to the effective conduct of the inquiry.
(12) Any person contemplated in subsection (9) has the right to [a
representative of his choice] have a
legal representative present during 5
the time that he appears before the presiding officer.
(13) An inquiry contemplated
in this section shall [not be public] ~
private and confidential and the presiding officer shall at any time on
application [o~ ~ the person whose affairs are investigated or any other
person giving evidence or the person contemplated in subsection (1), 10
exclude from such inquiry or require to withdraw therefrom, all or any
persons whose attendance is not necessary for the inquiry.”; and
(c) by the addition of the following subsections:
“(15)
Sub~ect to subsection (16). the evidence given under oath or
solemn declaration at an inquiry may be used by the Commissioner in
15
any subsequent proceedings to which the person whose affairs are
investigated is a party or to which a person who had dealings with such
person is a party.
(16)
(a) No person may refuse to answer any question during an
inquiry on the grounds that it may incriminate him.
20
(b) No incriminating evidence so obtained shall be admissible in any
criminal proceedings against the person giving such evidence, other than
in proceedings where that person stands trial on a charge relating to the
administering or taking an of oath or the administering or making of an
affirmation or the giving of
frdse evidence or the making of a false 25
statement in connection with such questions and answers.
(17) An inquiry in terms of this section shall proceed notwithstanding
the fact that any civil or criminal proceedings are pending or contem-
plated against or involving any person contemplated in subsection (6)(c)
or any witness or potential witness or any person whose affairs may be 30
investigated in the course of such inquiry.”.
Amendment of section 15 of Act 40 of 1949, as amended
by section 4 of Act 77 of
1964
5. Section 15 of the Transfer Duty Act. 1949, is hereby amended by the substitution
for subsection (3) of the following subsection:
35
“(3) Any person who fails to comply with any provision of this section
shall be guilty of an
offence and liable on conviction to a fine [not
exceeding fifty
rand] or to imprisonment for a period not exceeding
three months.”,
Amendment of section 1 of Act 45 of 1955, as amended by section 1 of Act 59 of 40
1957, section 1 of Act 65 of 1960, section 7 of Act 77 of 1964, section 3 of Act 92 of
1971, section 9 of Act 106 of 1980, section 5 of Act 86 of 1987, section 7 of Act 87 of
1988, section 6 of Act 97 of 1993, section 2 of Act 140 of 1993, section 8 of Act 88 of
1996, section 5 of Act 27 of 1997, section 34 of Act 34 of 1997 and section 7 of Act
53 of 1999 45
6. Section 1 of the Estate Duty Act, 1955, is hereby amended by the insertion after the
definition of “company” of the following definition:
“ ‘domestic policy’ means any life policy as defined in section 1 of the
Long-term Insurance Act, 1998 (Act No.
52 of 1998), issued anywhere
upon an application made or presented to a representative of an insurer
50
(or to any person on behalf of such a representative) at any place in the
Republic, excluding a life policy which has been made payable at a place
outside the Republic at the request of the owner, but including any life
policy issued outside the Republic which has subsequently been made
payable in the Republic at the request of the owner;”.
55

{~ No. 21390
GOVER NMENT GAZETTE, 19 JULY 2000
Act No. 30,2000
TAXATION LAWS AMENDMENT ACT. 2000
Amendment of section 3 of Act 45 of 19s5, as amended by section 2 of Act 65 of
1960, section 8 of Act 77 of
1964, section 2 of Act 81 of 1965, section 4 of Act 92 of
1971, section 3 of Act 89 of 1972, section 3 of Act 102 of 1979, section 10 of Act 106
of 1980, section 2 of Act 92 of 1983,
section 4 of Act 81 of 1985, section 9 of Act 87
of 1988, section 7 of Act 97 of 1993, section 6 of Act 27 of 1997 and section 13 of Act 5
30 of 1998
7. Section 3 of the Estate Duty Act, 1955, is hereby amended by the substitution for
the words preceding the proviso to paragraph (a) of subsection (3) of the following
words:
“so much of any amount due and recoverable under any policy of insurance 10
which is a ‘domestic
policy’ [as defined in section 1 of the Insurance Act,
1943 (Act 27 of 1943)], upon the life of the deceased as exceeds the aggregate
amount of any premiums or considemtion proved to the satisfaction of the
Commissioner 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 15
calculated upon such premiums or consideration from the date of payment to
the date of death:;’.
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 Act 71 of 1961, section 9 of Act 77 of
1964, section 3 of Act 81 of 1965, section 2 of Act 94 of 1967, section 5 of Act 92 of
20
1971, section 2 of Act 70 of 1975, section 1 of Act 104 of 1976, section 4 of Act 102
of 1979, section 11 of Act 106 of 1980, section 3 of Act 99 of 1981, section 5 of Act 81
of 1985, section 6 of Act 86 of 1987, section 10 of Act 87 of 1988, section 8 of Act 97
of 1993, section 3 of Act 20 of 1994, section 7 of Act 27 of 1997 and section 14 of Act
30 of 1998 25
8. (1) Section 4 of the Estate Duty Act, 1955, is hereby amended—
(a) by the substitution for subparagraph (i) of paragraph (h) of the following
subparagraph:
“(i) any [charitable, educational or religious institution of a public
character] public benefit organisation which is exempt from tax in terms 30
of section
[lO(l)@] 1O(1)(CN) of the Income Tax Act, 1962 (Act No. 58
of 1962) [and any fund which has been approved by the Commis-
sioner under the provisions of section
10(l)~A) of that Act]; or”; and
(b) by the deletion of subparagraphs (ii) and (iv) of paragraph (h).
(2) Subsection (1) shall come into operation on a date fixed by the President by 35
proclamation in the Gazette and shall apply in respect of any person who dies on or after
that date.
Amendment of section SD of Act 45 of 1955, as inserted by section 7 of Act 46 of
1996
9. Section 8D of the Estate Duty Act, 1955, is hereby amended— 40
(a) by the substitution for paragraph (b) of subsection (8) of the following
paragraph:
“(b) have the same powers—
~ to enforce the attendance of witnesses and to compel them to give
evidence or to produce evidential material; @ 45
(Q relating to contempt committed during the proceeding,
as are vested in a President of the Special Court contemplated in section
83 of the Income Tax Act, 1962, and for those
purposes sections 84 and
85 of that Act shall apply
mutatis nuttatxiis; and”;
(b) by the substitution for subsections (11), (
12) and ( 13) of the following 50
subsections:
“(11 ) The executor of the estate of the deceased person whose af~airs
are investigated in the course of an inquiry contemplated in this section.
shall be entitled to be present [throughout] q the inquiry durinx such
time as his affairs are investigated,
unless on application by the person 55
contemplated in subsection ( 1), the presiding officer directs otherwise on
the ground that the presence of the executor and his representative. or

14 No. 2139tI GOVERNMENT GAZETTE, 19 JULY 2000
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT, 2000
either of them. would be prejudicial to the effective conduct of the
inquiry.
(12) Any person contemplated in subsection (9) has the right to [a
representative of his choice] have a
legal representative present during
the time that he
appears before the presiding officer. 5
(13) An inquiry contemplated in this section shall [not be public] ~
private and confidential and the presiding officer shall at any time on
application
[of’j ~ the executor of the estate of the deceased person
whose affairs are
being investigated or any other person giving evidence
or the person contemplated in subsection (1), exclude from such inquiry 10
or require to withdraw therefrom, all or any persons whose attendance is
not necessay for the inquiry.”; and
(c) by the addition of the following subsections:
“(15) Subject to subsection (16). the evidence given under oath or
solemn declaration at an inquiry may be used by the Commissioner in
15
any subsequent proceedings to which the executor of the estate of the
deceased person whose affairs are investigated is a party or to which a
person who had dealings with such person is a party.
( 16)
(a) No person may refuse to answer any question during an
inquiry on the grounds that it may incriminate him. ~o
(b) No incriminating evidence so obtained shall be admissible in any
criminal proceedings against the person giving such evidence, other than
in proceedings where that person stands trial on a charge relating to the
administering or taking of an oath or the administering or making of an
affirmation or the giving of false evidence or the making of a false
25
statement in connection with such questions and answers.
(17) An inquiry in terms of this section shall proceed notwithstanding
the fact that any civil or criminal proceedings are pending or contem-
plated against or involving any person contemplated in subsection (6)(c)
or any witness or potential witness or any person whose affairs may be 30
investigated in the course of such inquiry,”.
Substitution of section 23 of Act 45 of 1955
10. The following section is hereby substituted for section 23 of the Estate Duty Act,
1955:
“Returns by insurers 35
23. Every person who carries on in the Republic any insurance business
shall whenever he. on the death of any person, makes payment of any claim
under any policy of insurance which is a ‘domestic policy’ [as defined in
section one of the Insurance Act, 1943 (Act 27 of 1943)], upon the life of
that person, advise the Commissioner, in such form as the Commissioner 40
may require, of such payment.”.
Amendment of section 28 of Act 45 of 1955, as amended by section 17 of Act 77 of
1962, section 7 of Act 81 of 1965, section 9 of Act 81 of 1985, section 12 of Act 97 of
1993 and section 8 of Act 46 of 1996
11. Section 28 of the Estate Duty Act, 1955, is hereby amended— 45
(a) by the substitution for the words following on paragraph (b) of subsection (1)
of the following words:
“shall be guilty of an offence and liable on conviction to a fine [not
exceeding one thousand
rand] or to imprisonment for a period not
exceeding two years [or to both such fine and such imprisonment].”; 50
and
(b) by the substitution for the words following on paragraph (d) of subsection (2)
of the following words:
“shall be guilty of an offence and liable on conviction to a fine [not
“exceeding
R1 000] or to imprisonment for a period not exceeding two 55
m.”.

16 No. 21390 GOVERNMENT GAZEIT’E, 19 JULY 2000
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT. 2000
Fixing of rates of normal tax in terms of Act 58 of 1962
12. The rates of normal tax to be levied in terms of section 5(2) of the Income Tax Act,
1962, in respect of—
(a) the taxable income of any person other than a company for the year of
assessment ending on 28 February 2001 or 30 June 2001;
5
(b) the taxable income of any company for any year of assessment ending during
the period of 12 months ending on 31 March 2001, excluding any taxable
income in respect of which the provisions of paragraph (c) apply; and
(c) the taxable income of any company contemplated in paragraph 2(b) or (c) of
Schedule 1 to this Act, for the year of assessment commencing on or after 10
1 April 2000 and ending during the period of twelve months ending on
31 March 2000,
shall be as set out in Schedule 1 to this Act.
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 1963, section 4 of Act 90 of 15
1964, section 5 of Act 88 of 1965, section 5 of Act 55 of 1966, section 5 of Act 95 of
1967, section 5 of Act 76 of 1968, section 6 of Act 89 of 1969, section 6 of Act 52 of
1970, section 4 of Act 88 of 1971, section 4 of Act 90 of 1972, section 4 of Act 65 of
1973, section 4 of Act 85 of 1974, section 4 of Act 69 of 1975, section 4 of Act 103 of
1976, section 4 of Act 113 of 1977, section 3 of Act 101 of 1978, section 3 of Act 104 20
of 1979, section 2 of Act 104 of 1980, section 2 of Act 96 of 1981, section 3 of Act 91
of 1982, section 2 of Act 94 of 1983, section 1 of Act
30 of 1984, section 2 of Act 121
of 1984, section 2 of Act 96 of 1985, section 2 of Act 65 of 1986, section 1 of Act 108
of 1986, section 2 of Act 85 of 1987, section 2 of Act 90 of 1988, section 1 of Act 99
of 1988, Government Notice No. R.780 of 14 April 1989, section 2 of Act 70 of 1989, 25
section 2 of Act 101 of 1990, section 2 of Act 129 of 1991, section 2 of Act 141 of 1992,
section 2 of Act 113 of 1993, section 2 of Act 21 of 1994, section 2 of Act 21 of 1995,
section 2 of Act 36 of 1996, section 2 of Act 28 of 1997, section 19 of Act 30 of 1998
and section 10 of Act 53 of 1999
13. (1) Section 1 of the Income Tax Act, 1962, is hereby amended—30
(u) by the substitution for paragraph (b) of the definition of “company” of the
following paragraph:
“(b) any association, corporation or company incorporated under the law of
any country other than the Republic or any body corporate formed or
established under such law [if such association, corporation, company 35
or body, as the case may be, carries on business or has an office or
place of business in the Republic or derives income from any source
within or deemed to be within the Republic or in which any person
ordinarily resident or carrying on business in the Republic is
interested as a shareholder or member]; or”;
40
(b) by the deletion of paragraph (c) of the definition of “company”;
(c) by the substitution for paragraph
(d) of the definition of “company” of the
following paragraph:
“(d) any association (not being an association referred to in paragraph (a) or
(~) [or an association to which the provisions of section lo(l)(e) 45
apply] j formed in the Republic to serve a specified purpose, beneficial to
the public or a section of the public; or”;
(d) by the substitution for paragraph (e) of the definition of “company” of the
following paragraph:
“(e) any— 50
Q unit portfolio comprised in any unit trust scheme in securities
other than property shares managed or carried on by any
company registered as a management company under section 4
of the Unit Trusts Control Act, 1981 (Act No. 54 of 1981),
if—
[(i)]~ such portfolio was created on or after the date of 55
commencement of the Unit Trusts Control Amendment
Act, 1962 (Act No. 11 of 1962);
[(ii)]@ such portfolio was created before that date and the
relevant trust deed has after that date been amended in
order to create further units in that portfolio; or
60

18 No. 21390 GOVERNMENT GAZEITE, 19 JULY 2000
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT, 2000
(ii) arrangement or scheme carried on outside the Republic in
pursuance of which members of the public are or will be invited
or permitted to invest in a portfolio of a collective investment
scheme, where two or more investors contribute to and hold a
participatory interest in a portfolio of the scheme through shares, 5
units or any other form of participatoryinterest; or”;
(e) by the substitution for the words preceding paragraph (a) of the definition of
“dividend” of the following words:
“ ‘dividend’ means any amount distributed by a company (not being [a
mutual building society or] an institution to which section
10(1 )(d)
applies) to its shareholders or any amount distributed out of the assets
pertaining to any unit portfolio referred to in paragraph
(e) of the
definition of ‘company’ in this section to shareholders in relation 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
April 1977 to its members, whether divided among the members in
accordance with their rights as shareholders or according to the value of
business transactions between individual members and such
societv or. company or on some other basis), and in this definition the expression
‘amount distributed’ includes—”;
by the insertion after paragraph (c)of the definition of “gross income” of the
following paragraph:
‘ ‘(cA) any amount received by or accrued to any person who-
(i) is a natural person;
(ii) is or was a
labour broker as defined in the Fourth Schedule (other
than a labour broker in respect of which a certificate of exemption
has been issued in terms of that Schedule);
(iii) is or was a personal service company as defined in the Fourth
Schedule; or
(iv) is or was a personal service trust as defined in the Fourth
Schedule,
as compensation for any restraint of trade imposed on such person;”;
(g) by the insefiion after paragraph (eA) of the definition of “gross income” of the following paragraph:
“(eB) any amount received by or accrued to any person by way of any
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distribution by any pension fund or provident fund to such person (other
than any amount recoverable in terms of the provisions of section 37D
of the Pension Funds Act, 1956 (Act No. 24 of 1956)), where such
person or any other person from whom such person received the right to
participate in such fund or distribution has during such year or any 40
previous year of assessment as an employer contributed any sum to
such fund for the benefit of its employees or former employees;”;
(h) by the substitution for paragraph (k) of the definition of “gross income” of the
following paragraph:
“(k) any amount received or accrued by way of dividends including any 45
[dividends distributed by a private company out of or by way of
capitalization of any profits of such company, which in terms of
section 37 of the Income Tax
Ac~ 1941 (Act No. 31 of 1941), had
previously been apportioned among its shareholders as the taxable
income or the income subject to super tax of such company, and for 50
the purposes of this paragraph all dividends from sources outside the
Republic received by or accrued to any person (other than a
company) who is ordinarily resident in the Republic or received by
or accrued to any company which is registered, managed and
controlled in the Republic, shall be deemed to have been received by 55
or to have accrued to such person or company from a source within
the Republic] amount determined in accordance with the provisions of
section 9E in respect of any foreign dividend received by or
accmed to
VP erson who is a resident as defined in such section;”;
(i) by th~insertion after the definition of “mining operations” of the following 60
definition:
“ ‘Minister’ means the Minister of Finance;’!;

20 No. 21390
GOVERNMENT GAZETTE, 19 JULY 2000
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT, 2000
(j) by the substitution for the definition of “prescribed rate” of the following definition:
“ ‘prescribed rate’, in relation to any interest payable in terms of this Act,
means such rate as the Minister may from time to time fix
by notice in the Gazette for the pu~oses of— 5
(a)
(b) [in the case ofl interest payable to any taxpayer under the
provisions of section
89quat(4) [a rate of 10,5 per cent per
annum]; or
[in] any other [case a rate of 14,5 percent per annum or, in either
case, such other rate as the Min~ster of Finance may from time 10
to time fix by notice in the Gazette] provision of this Act;”; and
(k) by the substitution for the definition of “trading stock” of the following
definition:
“ ‘trading stock’ includes—
~ anything— 15
il) produced, manufactured, purchased or in any other manner acquired by a taxpayer for the purposes of manufacture, sale
or exchange by him or on his behalfi or
(@ the proceeds from the disposal of which forms or will form
part of his gross income; or ~o
@ any consumable stores and spare parts acquired by him to be used or
consumed in the course of his trade,
but does not include a foreign currency option contract and a forward
exchange contract as defined in section 241(1);”.
(2) (a) Subsection (l)(a),
(b), (d) and (h) shall be deemed to have come into operation 25
on 23 February 2000, and shall apply in respect of any foreign
dividend—
(i) received by or accrued to any person on or after that date; or
(ii) which accrued to the person before
23 February 2000, but which is received on
or after that date: Provided that the provisions of this paragraph shall not apply
in respect of any dividend declared by a company before 23 February 2000, 30
where—
(aa) such company is listed on a recognised stock exchange; or
(M) in any other case, the chief executive officer and—
(A) an external auditor of the company; or
(B) where a company is situated in a country which does not require 35
compulsory appointment of an external auditor, a registered public
accountant of the same standing as a qualified chartered accountant,
have declared under oath or affirmation that such dividend was actually
declared by the company before 23 February 2000.
(b) Subsection (1)(c) shall come into operation on 1 January 2001 and shall apply in 40
respect of years of assessment commencing on or after that date.
(c) Subsection (l )~) and (g) shall be deemed to have come into operation on
23 February 2000, and shall apply in respect of any amount received or accrued on or
after that date.
Amendment of section 4 of Act 58 of 1962, as amended by section 6 of Act 55 of 45
1966, section 4 of Act 104 of 1979, section 32 of Act 104 of 1980, section 3 of Act 96
of 1981, section 3 of Act 85 of 1987, section 3 of Act 70 of 1989, section 4 of Act 21
of 1994, section 3 of Act 36 of 1996, section 34 of Act 34 of 1997, section 21 of Act 30
of 1998 and section 11 of Act 53 of 1999
14. Section 4 of the Income Tax Act, 1962. is hereby
amended— 50
(a) by the substitution for paragraph (c) of the proviso to subsection (1) of the
following paragraph:

22 No. 21390 GOVERNMENT GAZETTE, 19 JULY 2000
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT, 2000
“(c) the provisions of this subsection shall not be construed as preventing the
Commissioner from—
Q disclosing to the Chief of the Central Statistical Services such
information in relation to any person as may be required by such
Chief in connection with the collection of statistics in complying
with the provisions of the Statistics Act, 1976 (Act No. 66 of
1976), or any regulation thereunder
q
m publishing a list of approved public benefit organisations for the
purposes of the provisions of sections 18A and 30.”;
(b) by the substitution for subsection (3) of the following subsection:
“(3) Any person who contravenes the provisions of subsection (1) or
(2A) shall be guilty of an
offence and liable on conviction to a fine [not
exceeding R5 000] or to imprisonment for a period not exceeding two
years [or to both such fine and such imprisonment].”.
Amendment of section 6 of Act 58 of 1962, as inserted by section 5 of Act 104 of 1980
and amended by section 5 of Act 96 of 1981, section 5
ot’Act 91 of 1982, section 4 of
Act 94 of 1983, section 4 of Act 121 of 1984, section 3 of Act 96 of 1985, section 4 of
Act 85 of 1987, section 4 of Act 90 of 1988, section 4 of Act 70 of 1989, section 3 of
Act 101 of 1990, section 4 of Act 129 of 1991, section 4 of Act 141 of 1992, section 5
of Act 21 of 1995, section 4 of Act 36 of 1996, section 3 of Act 28 of 1997, section 22
of Act 30 of 1998 and section 5 of Act 32 of 1999
15. Section 6 of the Income Tax Act, 1962, is hereby amended—
(a) by the substitution for the expression“R37 10” in paragraph (a) of subsection
(2) of the expression “R3 800”; and
(b) by the substitution for the expression “R2 775” in paragraph (b) of subsection
(2) of the expression “R2 900”.
Amendment of section 6quaf of Act 58 of 1962, as inserted by section 5 of Act 85 of
1987 and amended by section 5 of Act 28 of 1997 and section 12 of Act 53 of 1999
16. (1) Section
6quat of the Income Tax Act, 1962, is hereby amended—
(a) by the substitution for subsection (1) of the following subsections:
“(l) Subject to the provisions of subsection (2), there shall be deducted
from the normal tax payable by any resident of the Republic or any person
contemplated in section
9C(2)(b) or any shareholder who is a ‘resident’ as
defined in section 9E, in whose taxable income there is
included—
(a) any income received by or accrued to such resident or person from any
country other than the Republic other than any
foreign dividend
contemplated in paragraph
(d]; or
(b) any proportional amount of investment income contemplated in section
9D; or
(c) any income payable to such resident from the Republic, where such
income is deemed to be from a source within the Republic in terms of the
provisions of paragraphs (d), (d)bis and ~) of section 9(1); g
@ any foreign dividend contemplated in section 9E,
a rebate determined in accordance with this section.
(1A) For the purposes of subsection(1), the rebate shall be an amount equal
to the sum of any taxes on income proved to be payable, without any right of
recovery by any person (other than a right of recovery in terms of any
entitlement to carry back losses arising during any year of assessment to any
year of assessment prior to such year of assessment),
by—
[(i)(au)]f@@ such resident of the Republic; and
[(bb)] ~ any controlled foreign entity, as contemplated in section 9D,
in respect of such proportional amount; or
[(ii)] ~ such person contemplated in section 9C(2)(b); or
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24 No. 21390
GOVERNMENT GAZETTE, 19 JULY 2000
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT, 2000
(c) (i) such shareholder in respect of any dividend contemplated in
subsection (1)(d); and
(ii) any company in respect of any profits from which such
dividend is declared or deemed to have been declared; or
(d) any company in respect of the proportional amount of any
profits from which any dividend is declared or deemed to
have been declared to a controlled foreign entity and which
dividend relates to any proportional amount of investment
income included in the income of such shareholder as
contemplated in subsection ( 1 )(b),
to the government of [such other] any country other than the Republic
in respect of the amount of income derived from such country
. ‘which
$ so included in that resident’s or person’s or shareholder’s taxable
income.
[Provided that] ~ Notwithstanding the provisions of subsection (1 A)—
(a)
(b) the rebate [under this subsection] of any tax proved to be
pavable to the ~ovemment of any other country shall not exceed
an amount which bears to the total normal tax payable the same
ratio as the taxable income attributable to the income derived
from such country,which is so included bears to the total taxable
income: and
where such sum of any taxes payable to the government of any
such other country exceeds the rebate as determined in paragraph
(a) [of this proviso] (hereinafter referred to as the excess
amount), such excess amount [(excluding so much of such
excess amount relating to foreign tax paid or payable by any
controlled foreign entity which distributes its profits in the
form of dividends)] may—
(i) in the case of any excess amount which relates to any amount
included in the income of any company as contemplated inp~auraph (a), (c) or (d) of subsection (1), be deducted from
any
Second~ Tax on Companies which becomes payable
by such company after the determination of such excess
amount, limited to an amount determined by applying the
rate of the Secondary Tax on Companies to the profits
attributable to the inclusion of the income contemplated in
[paragraph
(a) of this subsection] such paragraphs; or
(ii ) in the case of any excess amount relating to any amount
included in the income of any company as contemplated in
paragraph
(b) of subsection ( 1), be deducted from any
Secondary Tax on Companies which becomes payable by
such company on the distribution of any profits derived by
way of dividends declared to such company by such
controlled foreign entity from profits that relate to any
amount of investment income so included in terms of
paragraph (b), limited to an amount determined by
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26 No. 21390 GOVERNMENT GAZETI’E, 19 JULY 2000
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT, 2000
applying the rate of the Secondary Tax on Companies to the
amount of the taxable income attributable to the inclusion of
the income contemplated in such
para~raphz
after the deduction of—
[(i)]@@ any normal tax paid or payable; or 5
[(ii)]~ such sum of taxes payable to the government of any such
other country,
whichever amount is the greater:
Provided
that—
(A) the amount of any such excess amount as exceeds the amount
of any Secondary Tax on Companies as contemplated in
subparagraph (i) or (ii),
may—
(AA) be carried forward to the immediately succeeding year
of assessment and shall be deemed to be a tax on i~come
paid to the government of such country in such year; and
(BB) be set off against the amount of any normal tax payable
by such company during such year of assessment in
respect of any amount derived from such country which
is included in the taxable income of such shareholder
during such year, as contemplated in paragraph (a), (b),
(c,) or(d) of subsection(1), after any tax payable by such
company to the government of such country in respect
of the amount so included during such year of assess-
ment has been set off against the amount
of—
(AAA) such normal tax payable in respect of such
amount of income; and
(BBB) any Secondary Tax on Companies as contem-
plated in subparagraph (i) or (ii) which becomes
payable during such yew, and
(B) the excess amount contemplated in this paragraph shall not be
allowed to be carried forward for more than three years
reckoned from the year of assessment when such excess
amount was for the first time carried forward;
(c) the amount of any tax
which—
(i) becomes payable to the government of any other country in
respect of any amount
which—
(au) is declared to any company which is a resident as a
foreign dividend which is exempt from tax in terms of
section
9E(7)(e); or
(W) would, but for the provisions of section 9D(9)(f), have
been included in any income of such company which is a
resident; and
(ii) has not been taken into account as a rebate against any normal
tax payable by such company in respect of such amount
previously included in his taxable income in terms of section
9D,
may be deducted from any Secondary Tax on Companies which
becomes payable by such company on the distribution of any profits
derived by way of dividends declared to such company by any
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$0
$5

28 No. 21390 GOVERNMENT GAZETTE, 19 JULY 2000
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT, 2000
controlled foreign entity from profits relating to any investment
income so previously included;
(d) no rebate shall be allowed as a deduction from the tax payable by
any shareholder, in respect of any tax contemplated in subsection
(
lA)(c)(ii) or (d), which is payable by—
(i) any company distributing any dividend to such shareholder, if
such shareholder (in the case of a company, together with any
other company in a group of companies of which such company
forms part) holds for his or its own benefit less than 10 per cent
of the equity share capital in such company; or
(ii) any company in respect of any profits from which the dividend
is declared or deemed to have been declared, if such share-
holder does not hold a qualifying interest in such company;
(e) no rebate shall be allowed in respect of any tax payable on any
amount contemplated in subsection (1)(d), if the shareholder has
made an election as contemplated in section
9E(6). ”; and
(b) by the substitution for subsection (3) of the following subsection:
“(3) For the purposes of this
section—
‘controlled company’ means a controlled company as defined in section
9&;
‘controlling company’ means a controlling company as defined in section
~;
‘group of companies’ means a group of companies as defined in section
~;
‘qualifying interest’ means any q ualifying interest as defined in section
9E;
‘resident of the Republic’ means—
@ any natural person who is ordinarily resident in the Republic; and
@ any person, other than a natural person, which is incorporated or has
its place of effective management in the Republic.”.
(2) Subsection (1) shall be deemed to have come into operation on 23
February 2000, and applies in respect of any foreign dividend—
(a) received by or accrued to any person on or after that date; or
(b) which accrued to the person before
23 February 2000, but which is
received on or after that date: Provided that the provisions of this
paragraph shall not apply in respect of any dividend declared by a
company before 23
Febmary 2000, where—
(i) such company is listed on a recognised stock exchange; or
(ii) in any other case, the chief executive officer
and—
(aa) an external auditor of the company; or
(bb) where a company is situated in a country which does not
require compulsory appointment of an external auditor, a
registered public accountant of the same standing as a
qualified chartered accountant,
have declared under oath or affirmation that such dividend was
actually declared by the company before 23 February 2000.
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30 No. 21390 GOVERNMENT GAZETTE, 19 JULY 2000
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT, 2000
Amendment of section 8 of Act 58 of 1962, as amended by section 6 of Act 90 of
1962, section 6 of Act 90 of 1964, section 9 of Act 88 of 1965, section 10 of Act 55 of
1966, section 10 of Act 89 of 1969, section 6 of Act 90 of 1972. section 8 of Act 85 of
1974, section 7 of Act 69 of 1975, section 7 of Act 113 of 1977, section 8 of Act 94 of
1983, section 5 of Act 121 of 1984, section 4 of Act 96 of 1985, section 5 of Act 65 of
1986, section 6 of Act 85 of 1987, section 6 of Act 90 of 1988, section 5 of Act 101 of
1990, section 9 of Act 129 of 1991, section 6 of Act 141 of 1992, section 4 of Act 113
of 1993, section 6 of Act 21 of 1994, section 8 of Act 21 of 1995, section 6 of Act 36
of 1996, section 6 of Act 28 of 1997, section 24 of Act 30 of 1998 and section 14 of Act
53 of 1999
17. (1) Section 8 of the Income Tax Act, 1962, is hereby
amended—
(a) by the substitution for paragraph (g) of subsection ( 1 ) of the following
paragraph:
“(g) Where, during any year of assessment. any person contemplated in
paragraph (e) has held a public office for less than 12 months, the amount
of R2 500 referred to in the proviso to paragraph (d)(iv) and the amount
determined [by the Minister] in terms of paragraph ~), shall be reduced
to an amount which bears to the relevant amount, the same ratio as the
number of months (in the determination of which a part of a month shall
be reckoned as a full month), for which the office was held bears to 12
months.”;
(b) by the addition to paragraph
(a) of subsection (4) of the following proviso:
“Provided that the provisions of this paragraph shall not apply in respect
of
anv such amount so recovered or recouped which has been included in
the gross income of such taxpayer in terms of paragraph (eB ) of the
definition of ‘gross income’ .“; and
(c) by the substitution for paragraph (e) of subsection (4) of the following
paragraph:
“(e) If anv amount which was deducted—
m
(iiJ
(iii_)
(NJ
under the provisions of section 11(e) or section 12(1) or section
12( 1 ) as applied by section 12(3) or the corresponding provisions of
any previous Income Tax Act or section 12B or section 12C or
section 14 or section
14bis or section 27(2)(d), in respect of’
machinery or plant which was used by the taxpayer directly in a
process of manufacture, or directly in any other process carried on
by him on or after 15 March 1961, which in the opinion of the
Commissioner was of a similar nature; or
in respect of
machine~ or plant which was used by an agricultural
co-operative (as defined in section 27(9)) directly for storing or
packing pastoral, agricultural or other farm products or for
subjecting such products to a primary process as defined in the said
section 27(9): or
in respect of a ship or aircraft used by him for the purposes of his
trade; or
in
resp;ct of any pipeline, transmission line or cable or railway line
as contemplated in section 12D,
has as a result of damage or destruction (hereinafter referred to as ‘the
event’ ) been recovered or recouped during any year of assessment, and if
the taxpayer satisfies the Commissioner—
[(i)]fc@ that he has concluded or will within a period of one year (or
such longer period as the Commissioner in the circumstances
of the case may allow) from the date of the event conclude a
contract for the acquisition by him of further new or unused
machinery, [or] plant, [or a] ship, [or] aircraft, pipeline,
transmission line or cable or railway line (hereinafter referred
to as the ‘further asset’) to replace the aforesaid machinery,
[or] plant, [or] ship, [or] aircraft, pipeline. transmission line or
cable or railway line; and
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3? No. 21390 GOVERNMENT GAZEITE, 19 JULY 2000
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT, 2000
[(ii)]~ that the further asset has been or will be brought into use within
a period of three years from the date of the event and will be
used by
him—
[(ua)]~ directly in a process of manufacture or any other
process which in the opinion of the Commissioner is
of a similar nature;
[(bb)]@ in the case of such co-operative, directly for storing
or packing pastoral, agricultural or other farm
products or for subjecting such products to a primary
process, as defined in section 27(9); [or] [(cc)]~ in the case of a ship or aircraft, directly for the
purposes of the taxpayer’s trade;
Q
@ in the case of a pipeline. transmission line or cable
or railway line in his sole business of the transpor-
tation of persons.goods, things or natural oil as
defined in section 12D or the transmission of
electricity or any telecommunication signal,
for a period of not less than five years or until the further asset
is scrapped or disposed of in the ordinary course of the
taxpayer’s trade prior to the expiry of such period of five years,
the said amount shall, notwithstanding the provisions of paragraph
(a) of
this subsection, not be included in the income of the taxpayer for the
aforesaid year of assessment: Provided that if, owing to any occurrence
or because of any circumstance arising during any year of assessment the
Commissioner is no longer satisfied in regard to the matters in regard to
which in terms of the preceding provisions of this paragraph he is
required to be satisfied, the said amount shall be included in the income
of the taxpayer for the year of assessment during which such occurrence
takes place or such circumstance arises.”. (~) (a) Subsection (I )(a) shall be deemed to have come into operation on 1 March
1999.
(b) Subsection (1)(b) shall be deemed to have come into operation on 23 February
2000.
(c) Subsection (1)(c) shall be deemed to have come into operation on 23 February
2000, and shall apply in respect of any pipeline, transmission line or cable or railway
line contracted for, and the construction, installation or erection of which commenced,
on or after that date.
Amendment of section 9C of Act 58 of 1962, as inserted
by section 9 of Act 28 of
1997 and amended by section 27 of Act 30 of 1998
18. (1) Section 9C of the Income Tax Act, 1962, is hereby amended by the substitution
for the definition of “resident” in subsection (1) of the following definition:
‘“ ‘resident’ means—
f@ any natural person who is ordinarily resident in the Republic; and
~ any person, other than a natural person, which is incomorated, or has its place
of effective management, in the Republic;”.
(2) Subsection (1) shall be deemed to have come into operation on 23 February 2000.
5
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Amendment of section 9D of Act 58 of 1962, as inserted by section 9 of Act 28 of
1997 and amended by section 28 of Act 30 of 1998 and section 17 of Act 53 of 1999
19. (1) Section 9D of the Income Tax Act, 1962, is hereby
amended—
(a) by the substitution for the definition of “investment income” in subsection (1) 50
of the following definition:
“ ‘investment income’ means investment income as defined in section
9C(1) and includes any foreign dividend as defined in section 9E;”;

34 No. 21390 GOVERNMENT GAZETTE, 19 JULY 2030
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT, 2000
(b) by the substitution for the proviso to subsection (2) of the following proviso:
“Provided
that—
(@ the provisions of this subsection shall not apply to any amount of
investment income to which the provisions of subsection (4) are
applicable;
@
the amount of any investment income received bv or accrued to
such entity
by way of foreign dividends, shall for the purposes of
this section be determined in accordance with the provisions of
section 9E, as if such entity had been a resident.”;
(c) by the addition to subsection (4) of the following proviso:
“Provided that any amount of investment income received by or accrued
to such person by way of foreign dividends. shall for the purposes of this
section be determined in accordance with the provisions of section 9E. as
if such person had been a shareholder who is a resident.”;
(d) by the substitution for the words preceding the proviso to paragraph (a) of
subsection (9) of the following words:
“in respect of investment income, other than income from foreign
dividends, where the foreign tax actually paid or payable without any
right of recovery by any person (other than a right of recovery in terms of
any entitlement to carry back losses arising during any year of
assessment to any year of assessment prior to such year of assessment) in
any country other than the Republic, relating to the proportional amount
contemplated in subsection (2) or (4), after taking into consideration any
deductions or allowances under the taxation provisions of such other
country determined at the ratio as contemplated in subsection (2) or (4),
as the case may be, is more than 85 per cent of the normal tax payable in
the Republic:”;
(e) by the substitution for paragraph (d) of subsection (9) of the following
paragraph:
“(d) to any particular class of investment income which is taxable in a
country which the Minister [of Finance] has identified by notice in
the Gazette as a country whose tax on income is dete&ined on a
basis which is substantially the same as that of the Republic; [or]”;
and
(~) by the addition to subsection (9) of the following paragraphs: “(f) in relation to the proportional amount of investment income relating
to any foreign dividend declared to or deemed to have been declared
to a controlled foreign entity which is attributable to any resident, to
the extent that the profits from which the dividend is declared or
deemed to have been declared relate to any proportional amount of
40
investment income which has been included in the income of such
resident in terms of the provisions of this section; or
(g) to the proportional amount of any investment income of any
company listed on a stock exchange as defined in section
1 of the
Stock Exchanges Control Act, 1985 (Act No. 1 of 1985), or any
45
subsidiary of such company, which is attributable to any resident by
virtue of the shareholding of such resident in such company which
resident, together with any connected person in relation to such
resident, directly or indirectly holds less than 10 per cent of the
equity share capital in such company or
subsidi~. ”. 50
(2) Subsection (1) shall be deemed to have come into operation on 23 February 2000,
and applies in respect of any foreign dividend—
(a) received by or accrued to any person on or after that date; or
(b) which accrued to the person before 23 February 2000, but which is received
on or after that date: Provided that the provisions of this paragraph shall not 55
apply in respect of any dividend declared by a company before 23 February
2000,
where—
(i) such company is listed on a recognised stock exchange; or
(ii) in any other case, the chief executive officer
and—
(au) the external auditor of the company; or 60
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20
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36 No. 21390 GOVERNMENT GAZETTE, 19 JULY 2000
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT. 2000
(bb) where a company is situated in a country which does not
require compulsory appointment of an external auditor, a
registered public accountant of the same standing as a qualified
chartered accountant,
have declared under oath or affirmation that such dividend was
actually declared by the company before 23 February 2000.
Insertion of section 9E in Act 58 of 1962
20. (1) The following section is hereby inserted after section 9D of the Income Tax
Act, 1962:
“Taxation of foreign dividends
9E. (1) For the
purposes of this section—
‘controlled company’ means a company in relation to which anothel
company is the controlling company;
6controlling company’, in relation to any other company, means a compan~
which is a resident and which holds for its own benefit, whether directly 01
indirectly, through one or more companies in a group of companies 01
which all the companies in question form part, shares in such othel
company which constitute not less than 75 per cent of the equity shart
capital of the said other company;
‘designated country’ means a country designated by the Minister
undel
subsection (8);
‘effective date’ means 23 February 2000;
‘fixed capital’ includes share capital, share premium and accumulated
profits, whether of a capital nature or not;
‘foreign dividend’ means any dividend received by or which accrued to any
person from any company, to the extent that the dividend is declared from
profits derived by such company from a source outside the Republic which
are not deemed to be from a source within the Republic, or from profits
which are deemed to be from a source within the Republic which have not
been subject to tax in the Republic, and includes the following amounts.
which shall be deemed to be a dividend declared by such company to such
person—
(a) any amount deemed to have been distributed by any company as
contemplated in section 64C(3)(a), (b), (c)or (d) to such person or any
resident who is a connected person in relation to such person to the
extent that such company could have distributed a dividend to such
person from profits derived from a source outside the Republic which
are not deemed to be from a source within the Republic, or from profits
which are deemed to be from a source within the Republic which have
not been subject to tax in the Republic, and none of the provisions
contained in section 64C(4) apply: Provided that the provisions of this
paragraph shall not apply in respect of any amount distributed by any
company which is being wound up or liquidated or whose corporate
existence is finally terminated, out of profits of a capital nature (other
than profits of a capital nature derived from the disposal by such
company, on or after the effective date, of any interest in any other
company with retained profits which were available for distribution by
such other company to such company which would not have been
excluded from the provisions of paragraph
(b) had that paragraph
applied); or
(b) any amount derived by any person from the disposal by such person of
any share or interest in the fixed capital in a company, to the extent that
such company or any subsidiary of such company has any undistri-
buted profits which were derived from a source outside the Republic
which are not deemed to be from a source within the Republic, or from
profits deemed to be from a source within the Republic which have not
been subject to tax in the Republic, which were directly or indirectly
available for distribution to such person: Provided that the provisions
5
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$5
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38 No. 21390 GOVERNMENT GAZETTE, 19 JULY 2000
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT, 2000
of this paragraph shall not apply in respect of the disposal of any shar
or other interest in the fixed capital in a comparty—
(i) where such person at no time on and after the effective date hell
10 per cent or more of the total equity share capital of SUCI
company;
(ii) to any resident, where such resident will after such disposal hoh
for his own benefit at least 10 per cent of the equity share capita
of such company;
(iii) where such person retains the same effective interest in the
equit:
share capital or fixed capital of the company as prior to th(
disposal: Provided that the provisions of this subparagraph shal
not apply if one of the main purposes of such disposal is
th
avoidance, postponement or reduction of liability for any tax
duty or levy which, but for such disposal would have been o
would have become payable by any person under this Act or an!
other Act administered by the Commissioner;
(iv) by a shareholder who acquired such shares or interest from
an!
person who is not a resident and who is not a connected person il
relation to such shareholder, to the extent that such undistributed{
profits were derived prior to the acquisition of the shares by
SUC 1
shareholde~
, (v) to the extent that the proceeds from the disposal have otherwist
been included in the taxable income of such person; or
(vi) where the Commissioner is satisfied that the disposal of
tlx
shares or the non-declaration of dividends by such company wa!
not effected as part of a scheme for the purposes of avoiding tht
liability for tax, duty or levy, taking into account such condition:
as the Minister may prescribe by regulation;
‘group of companies’ means a controlling company and one or more othel
companies which are controlled companies in relation to the controlling
company;
‘proportionate amount of the profit’, in relation to a shareholder, means
ar
amount which bears to the total profit, the same ratio as such shareholder’s
shareholding bears to the total shareholding, and for that purpose, if there
are different classes of
shares—
(a) the expression ‘total shareholding’ refers only to the total of the class
of shares of which such shareholding is part; and
(b) the expression ‘total profits’ means the total profits attributable to such
class of shares;
‘qualifying interest’ of any person means—
(a) any direct interest of at least 10 per cent held by such person in the
equity share capital of any company; and
(b) any direct interest of at least 10 per cent held by any company
contemplated in paragraph
(a) in the equity share capital of any other
company, which other company shall for the purposes of this
definition be deemed to be a company contemplated in paragraph
(a)
in which such person holds a direct interest of at least 10 per cent;
‘resident’ means a resident as defined in section 9C( 1 ).
(2) Any foreign dividend received by or accrued to a resident shall for the
purposes of the definition of ‘gross income’ in section 1, be deemed to have
been received by or to have accrued to such resident from a source within
the Republic.
5
10
15
!0
!5
;0
5
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40 No. 21390 GOVERNMENT GAZETTE, 19 JULY 2000
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT, 2000
(3) Subject to subsection (7), where during any year of assessment any
foreign dividend is received by or accrues to any resident, the amount to be
included in the gross income of such resident for such year of assessment in
terms of paragraph (k) of the definition of ‘gross income’ in section 1.
shall—
(a) ifsuchresident—
(i) holds
forhisown benefit; or
(ii) in the case of a company, together with any other company in a
group of companies of which such company forms part, hold for
their own benefit,
at least 10 percent of the equity share capital in the company declaring
the dividend. be the proportionate amount of the profit from which the
dividend is distributed, before taking into account any foreign tax on
income imposed in respect of such profit and any withholding tax paid
in respect of such dividend: Provided that—
(au) unless such resident proves otherwise in such manner and such
form as the Commissioner may prescribe, the dividend shall be
deemed to have been distributed from the profits most recently
derived and available for distribution; and
(bb) where such company derived its profits by way of dividends
received or accrued and by way of other sources of profits, the
dividend shall be deemed to have been declared on a
proportionate basis from such dividends and other sources of
. profits; or
(b) if such resident—
(i) does not hold for his own benefit; or
(ii) in the case of a company, together with any other company in a
group of companies of which such company forms part, do not
hold for their own benefit,
at least 10 percent of the equity share capital in the company declaring
the dividend, be the amount of such dividend declared before taking
into account the amount of any withholding tax paid in respect of such
dividend.
(4) In determining the proportionate amount of the profit to be included
in the income of any resident in terms of subsection (3)(a). there shall be
taken into account any profits derived by any other company in which the
company distributing the dividend has an interest and which have been
distributed to such company in the form of dividends, if the resident has a
qualifying interest in such other company: Provided
that—
(a) unless such resident proves otherwise in such manner and such form as
the Commissioner may prescribe, the dividend shall be deemed to
have been distributed by such other company from the profits most
recently derived and available for distribution: and
(b) where such other company derived its profits by way of dividends
received or accrued to such company and by way of other sources of
profits, the dividend
shall be deemed to have been declared by such
other company on a proportionate basis from such dividends and other
sources of profits.
(5) For the purposes of subsection (3)(b), where—
(a) any dividend is declared by a company to any unit portfolio referred to
in paragraph (e)(i) of the definition of ‘company’ in section 1; and
(b) such dividend is distributed by such unit portfolio by way of a
dividend, or a portion of a dividend, to persons who have become
entitled to such dividend by virtue of their being registered as holders
of units in such unit portfolio,
such dividend contemplated in paragraph (a) shall be deemed to have been
declared by such company directly to such holders of units.
5
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42 No. 21390 GOVERNMENT GAZETTE, 19 JULY 2000
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT, 2000
(6) Any resident who receives a foreign dividend or to whom a foreigl
dividend accrues may, notwithstanding the provisions of subsection (3),
il
respect of any year of assessment elect that the amount of such dividend tf
be included in the gross income of such resident shall—
(a) if such resident—
(i) holds for his own benefit; or
(ii) in the case of a company, together with any other company in
:
group of companies of which such company forms part, hold fol
their own benefit,
at least 10 percent of the equity share capital in the company
declann~
such dividend, be the amount of the profits from which such dividenc
is declared after taking into account any foreign tax on incomt
imposed in respect of such profits and any withholding tax paid ir
respect of such dividend; or
(b) if such
resident—
(i) does not hold for his own benefit; or
(ii) in the case of a company, together with any other company in
t
group of companies of which such company forms part, do
nol
hold for their own benefit,
at least
10 percent of the equity share capital in the company declaring
such dividend, be the amount of such dividend after taking intc
account any withholding tax paid in respect of such dividend,
and such election shall apply in respect of all foreign dividends received by
or accrued to such resident during the year of assessment in respect 01
which the election was made.
(7) There shall be exempt from tax any foreign dividend declared 01
deemed to have been declared
by—
(a)
(b)
(c) any company which is a re~ident of the Republic, which during—
(i) the entire period of existence of such company; or
(ii) each of the three years of assessment preceding the year of
assessment during which such dividend is declared or deemed to
have been declared,
whichever period is shorter, derived 75 per cent or more of its total
receipts or accruals from a source within the Republic or deemed to be
from a source within the Republic and which was subject to tax in the
Republic;
any company incorporated in the Republic out of profits derived—
(i) by way of dividends which accrued to such company prior to the
effective date;
(ii) by such company through a branch outside the Republic—
(au) if such profits were repatriated to the Republic prior to the
effective date; or
(bb) in any other case, if such branch is situated in a designated
country and the profit from which the dividend is distributed
is subject to tax at a rate of at least 27 per cent without any
right of recovery by any person (other than a right of recovery
in terms of an entitlement to carry back losses arising during
any year of assessment to any year of assessment prior to
such year of assessment);
any company listed on a stock exchange as defined in section 1 of the
Stock Exchanges Control Act, 1985 (Act No. 1 of 1985), to a resident
who, together with any connected person in relation to such resident,
does not hold at
least 10 per cent of the equity share capital of such
company, if more than 10 per cent of the equity share capital in such
company is at the time of the declaration of such dividend held
collectively by residents: Provided that where such company was not
listed on such stock exchange on the effective date, the exemption

44 No. 21390
GOVERNMENT GAZETTE, 19 JULY 2000
Act No. 30,2000 TAXATtON LAWS AMENDMENT ACT, 2000
shall apply only upon approval by the Commissioner, which approva
the Commissioner may grant on application by such company, having
regard to-
(i) the fact whether or not the profits of such company were
generated in a designated country; and
(ii) the tax rate at which the profits from which the dividend was
declared was or will be taxed;
(d) any company, which is distributed directly or indirectly to a resident
who holds a qualifying interest in such company, to the extent that the
profits from which the dividend is declared—
(i) were generated in a designated country; and
(ii) are or will be subject to tax at a rate of at least 27 per cent without
any right of recovery by any person (other than a right of
recovery in terms of an entitlement to carry back losses arising
during any year of assessment to any year of assessment prior to
such year of assessment); or
(e) any company to the extent that the profits from which the dividend is
distributed—
(i) relate to any amount of investment income which has or will be
included in the income of the shareholder of such company in
terms of section 9D; or
(ii) have or will be included in the taxable income of such company
in terms of this Act; or
(iii) have otherwise been included in the taxable income of the
shareholder in terms of paragraph (a) of the definition of “foreign
dividend”.
(8) The Minister may, by notice in the Gazette, designate countries
which—
(a)
(b)
(c)
(d)
have entered into an agreement with the Republic for the avoidance of
double taxation and where such agreement is in force;
have a tax on income that is determined on a basis which is
substantially the same as that of the Republic;
have a statutory rate of tax on income of companies of at
least 27 per
cent without any right of recovery of such tax by any person (other
than a right of recovery in terms of an entitlement to carry back losses
arising during any year of assessment to any year of assessment prior
to such year of assessment); and
comply with any other requirement which the Minister may prescribe
by regulation.
(9) The discretion exercised by the Commissioner in terms of this section
shall be subject to obiection and appeal.”.
(2) Subsection (1) shall be deemed to have come into operation on 23 February 2000,
and applies in respect of any foreign dividend—
(a) received by or accrued to any person on or after that date; or
5
10
15
20
25
}0
)5
10
(b) which accked to the person before 23 February 2000, but which is received 45
on or after that date: Provided that the provisions of this paragraph shall not
apply in respect of any dividend declared by a company before
23 February
2000,
where—
(i) such company is listed on a recognised stock exchange; or
(ii) in any other case, the chief executive officer
and— 50
(au) an external auditor of the company; or
(bb) where a company is situated in a country which does not require
compulsory appointment of an external auditor, a registered public
accountant of the same standing as a qualified chartered accountant,
have declared under oath or affirmation that such dividend was actually 55
declared by the company before 23 February 2000.

46 No. 2 [390GOVERNMENT GAZETTE, 19 JULY 2000
Act No. 30,2000 TAXATtON LAWS AMENDMENT ACL 2000
Amendment of section 10 of Act 58 of 1962, as amended by section 8 of Act 90 of
1962, section 7 of Act 72 of 1963, section 8 of Act 90 of 1964, section 10 of 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, section 13 of Act 89 of 1969, section 9 of Act 52 of 1970, section 9 of Act 88
of 1971, section 7 of Act 90 of 1972, section 7 of Act 65 of 1973, section 10 of Act 85 5
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 of 1979, section 7 of Act 104
of 1980, section 8 of Act 96 of 1981, section 6 of Act 91 of 1982, section 9 of Act 94
of 1983, section 10 of Act 121 of 1984, section 6 of Act 96 of 1985, section 7 of Act 65
of 1986, section 3 of Act 108 of 1986, section 9 of Act 85 of 1987, section 7 of Act 90 10
of 1988, section 36 of Act 9 of 1989, section 7 of Act 70 of 1989, section 10 of Act 101
of 1990, section 12 of Act 129 of 1991, section 10 of Act 141 of 1992, section 7 of Act
113 of 1993, section 4 of Act 140 of 1993, section 9 of Act 21 of 1994, section 10 of Act
21 of 1995, section 8 of Act 36 of 1996, section 9 of Act 46 of 1996, section 10 of Act
28 of 1997, section 29 of Act 30 of 1998 and section 18 of Act 53 of 1999 15
21. (1) Section 10 of the Income Tax Act, 1962, is hereby amended—
(a)
(b)
(c)
(d)
(e)
(f)
by the deletion of paragraphs (cB), (cC), (cD), (cF), (cI). (cJ), (j) and VA) of
subsection (1);
by the deletion of paragraph (cK) of subsection (1);
by the insertion after paragraph
(cM) of subsection (1) of the following 20
paragraph:
“~ the receipts and accruals of anY Qublic benefit organisation which has
been approved by the Commissioner in terms of section 30(3~”;
by the substitution for paragraph (d) of subsection (1) of the following
paragraph: 25
“(d) the receipts and accruals of any [terminating building society]—
$ pension fund, provident fund, retirement annuity fund; z
(@ benefit fund [mutual savings bank], mutual loan association,
fidelity or indemnity fund, trade union, chamber of commerce or
indus&ies (or an a~sociation of such chambers), local publicity 30
association or non-proprietary stock exchange approved by the
Commissioner subject to such conditions as the Minister may
prescribe by regulation; or
(iii) company, society or other association of persons established
to–
(au) provide social and recreational amenities or facilities for the
members of such company, society or other association; or
(bb) promote the common interests of persons (being members of
such company, society or association of persons) carrying on
any particular kind of business, profession or occupation,
approved by the Commissioner subject to such conditions as the
Minister may
Prescribe by regulation;”;
by the substitution for subparagraph (iii) of paragraph
(hA) of subsection (1)
of the following subparagraph:
“(iii) for the purposes of this paragraph, so much of any dividend as has
been distributed by any unit portfolio constituting a company in
terms of paragraph (e)~ of the definition of ‘company’ in section 1
out of interest derived by such unit portfolio which is exempt from
tax in the hands of such unit portfolio under the provisions of
paragraph
(iA), shall be deemed to be interest;”;
by the substitution for subparagraph (xv) of paragraph (i) of subsection (1) of
the following subparagraph:
“(xv) in the case of any taxpayer who is a natural person, so much of the
aggregate of any dividends and interest received by
or accmed to
him which [is] are not otherwise exempt from tax, as does not
during the year
o~msessment exceed [the amountofR2000]—
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48 No. 21390 GOVERNMENT GAZETTE, 19 JULY 2)00
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT, 2000
(au) in the case of any person who was or, had he lived would have
been, at least 65 years of age on the last day of the year of
assessment, the amount of R4 000; or
(bb) in any other case, the amountofR3000:
Provided that the amount of the exemption from tax
shall— 5
(A) first apply in respect of any foreign dividends contemplated in
section 9E received or accrued which would not otherwise
have been exempt from tax; and
(B) in so far as such amount exceeds the amount of such foreign
dividends, apply in respect of such interest and other taxable
10
dividends recei~ed or accrued;”;
(g) by the deletion of subparagraph (xvi) of paragraph (i) of subsection (1);
(h) by the substitution for paragraph (iA) of subsection (1) of the following
paragraph:
“(iA) in the case of any unit portfolio referred to in paragraph (e)@ of the
definition of ‘company’ in section 1, so much of the interest
g
foreign dividends contemplated in section 9E received by or
accrued to such unit portfolio as has been distributed, or as the
Commissioner is satisfied will be distributed, by way of a dividend
or a portion of a dividend, to persons who have become entitled to
such dividend by virtue of their being registered as holders of units
in such unit portfolio on a date falling on or after the first day of
April, 1971 ;“;
(i) by the addition of the word “or” at the end of subitem (B) of item (bb) of
subparagraph (i) of paragraph
(k) of subsection (1);
(j) by the addition to subparagraph (i) of paragraph (k) of subsection (1) of the
following item:
“@@ to the amount of any foreign dividend contemplated in section 9E
received by or accrued to any resident as defined in section 9C;”; and
(k) by the deletion of subparagraph (xii) of paragraph (t) of subsection (l).
(2)
(a) Subsection (1)(a), (c) and (d) shall come into operation on a date fixed by the
President by proclamation in the Gazette: Provided that any company, society, trust,
institution, union, chamber, exchange, other association of persons or fund whose
receipts and accruals were exempt from tax in terms of the provisions of paragraphs
(cB), (cC), (cD),
(cF), (cI), (cJ), (j) and @A) of section 10( 1) of the Income Tax, 1962,
prior to the amendment thereof by this section, which company, society, trust,
institution, union, chamber, exchange, other association of persons or fund applies for
approval by the Commissioner in terms of section 10(1
)(d)(ii) or (iii) or section 30 of
that Act within a period of 12 months after the date so fixed by the President, or submit
a written undertaking as provided for in the said section 30 within such period, shall
continue to enjoy exemption until written notification by the Commissioner of his
decision in terms of the said section 10(1
)(d)(ii) or (iii) or section 30: Provided further
that any such company, society, trust, institution, union, chamber, exchange, other
association or fund, shall subject to the provisions of the said section 30-
(i) within a period of five years after the date so fixed by the President; or
(ii) at such time as any amendment to the constitution or other written document
in terms of which it has been established is effected,
whichever is sooner, submit to the Commissioner a copy of such constitution or other
written instrument in terms of which it has been established.
(b) Subsection (1)(b) and
(k) shall be deemed to have come into operation on 1
January 2000 and shall apply in respect of any year of assessment commencing on or
after that date.
(c) Subsection (1)&) and (g) shall be deemed to have come into operation on 1 March
2000, and shall apply in respect of any year of assessment commencing on or after that
date.
(d) Subsection (1)(e), (h), (i) and (j) shall be deemed to have come into operation on
23 February 2000, and apply in respect of any foreign
dividend—
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50 No. 21390GOVERNMENT GAZETTE, 19 JULY 2000
Act No. 30, 2000 TAXATION LAWS AMENDMENT ACT, 2000
(i) received by or accrued to any person on or after that date; or
(ii) which accrued to the person before 23 February 2000, but which is received
on or after that date:
Provided that the provisions of this paragraph shall not apply in respect of any dividend
declared by a company before 23 February 2000, where— 5
(au) such company is listed on a recognised stock exchange; or
(bb) in any other case, the chief executive officer and—
(A) an external auditor of the company; or
(B) where a company is situated in a country which does not require
compulsory appointment of an external auditor, a registered public 10
accountant of the same standing as a qualified chartered accountant,
have declared under oath or affirmation that such dividend was actually
declared by the company before 23 February 2000.
Amendment of section 11 of Act 58 of 1962, as amended
by section 9 of Act 90 of
1962, section 8 of Act 72 of 1963, section 9 of Act 90 of 1964, section 11 of Act 88 of 15
1965, section 12 of Act 55 of 1966, section 11 of Act 95 of 1967, section 9 of Act 76
of 1968, section 14 of Act 89 of 1969, section 10 of Act 52 of 1970, section 10 of Act
88 of 1971, section 8 of Act 90 of 1972, section 9 of Act 65 of 1973, section 12 of Act
85 of 1974, section 9 of Act 69 of 1975, section 9 of Act 113 of 1977, section 5 of Act
101 of 1978, section 8 of Act 104 of 1979, section 8 of Act 104 of 1980, section 9 of 20
Act 96 of 1981, section 7 of Act 91 of 1982, section 10 of Act 94 of 1983, section 11
of Act 121 of 1984, section 46 of Act 97 of 1986, section 10 of Act 85 of 1987, section
8 of Act 90 of 1988, section 8 of Act 70 of 1989, section 11 of Act 101 of 1990, section
13 of Act 129 of 1991, section 11 of Act 141 of 1992, section 9 of Act 113 of 1993,
section 5 of Act 140 of 1993, section 10 of Act 21 of 1994, section 12 of Act 21 of 1995, 25
section 9 of Act 36 of 1996, section 12 of Act 28 of 1997, section 30 of Act 30 of 1998
and section 20 of Act 53 of 1999
22. (1) Section
11 of the Income Tax Act, 1962, is hereby amended—
(a) by the insertion after paragraph (c) of the following paragraph:
“(cA) an allowance in respect of any amount actually incurred by such person 30
in the course of the carrying on of his trade, as compensation in respect
of any restraint of trade imposed on any other person who-
(i) is a natural person;
(ii) is or was a
labour broker as defined in the Fourth Schedule (other
than a
labour broker in respect of which a certificate of exemption 35
has been issued in terms of such Schedule);
(iii) is or was a personal service company as defined in the Fourth
Schedule; or
(iv) is or was a personal service trust as defined in the Fourth Schedule,
to the extent that such amount constitutes or will constitute income of the40
person to whom it is paid: Provided that the amount allowed to be
deducted under this paragraph shall not exceed for any one year the
lesser
of—
(aa) so much of such amount so incurred as is equal to such amount
divided by the number of years, or part thereof, during which the
45
restraint of trade shall apply; or
~ one-third of such amount so incurred;”;
(b) by the substitution for the words preceding the proviso to paragraph (o) of the
following
words:
“save as provided in paragraph 12(2) of the First Schedule, an allowance 50
in respect
of—
~ any building (or portion thereof) referred to in section 13(1) or (4)
or section 13bis( 1 ) or section 27(2)(b) or of any improvements (or
portion thereof) to such building; or
~ [ofl any shipbuilding structure referred to in section 13(8) or of any 55
improvement to such shipbuilding structure; or

51 No, 21390GOVERNMENT GAZETTE, 19 JULY 2000
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT. 2000
~ [ofl any residential unit referred to in section 13te~ or
(@ [ofl any pemanent work, road pavement or ancillary service referred to in section 24G; or
~ [ofl any machinery, plant, implements, utensils or articles used by
the taxpayer for the purposes of his trade;
~
~ an~transmission line or cable or railway line referred to in section
~J which have been scrapped by such taxpayer during the year of
assessment, such allowance to be the excess of the original cost to such
taxpayer of such building (or portion thereof), [or such] improvements
(or portion thereof) to such building, [or such] shipbuilding structure,
[or such] improvements to such shipbuilding structure, [or such] residential unit, [or such] permanent work, road pavement, [or] ancillary
service, [or such] machinery, plant, implements. utensils, [or] articles,
transmission line or cable or railway line over the total amount arrived at
by adding all the allowances made in respect thereof under the provisions
of paragraph (e) of this section, or section 12(1), or section 12(1) as
applied by section 12(3), or section 12A(2), or section 12B, or section
1 ZC, or section 12D, or section 13(]), or section 13(1) as applied by
section 13(4) or (8), or section 13bis( 1 ), (2) or (3), or section 13ter(2) or
(3), or section 14(1)(a) or (b), or the corresponding provisions of any
previous Income Tax Act, or section
14bis( 1 )(a), (b) or (c), or section
24F, or section 24G, or section 27(2)(b) or (d), to any amount or the value
of any advantage accruing to the taxpayer in respect of the sale or other
disposal of such building, shipbuilding structure, improvements, residen-
tial unit, permanent work, road pavement, ancillary service, machinery,
plant, implements, utensils [or] articles, transmission line or cable or
railway line:”;
(c) by the substitution for paragraphs (i) and (ii) of the proviso to paragraph
(o) of
the following paragraphs:.L(i)
(ii)
no allowance shall be made in the case of any such building (or portion
thereof), [or of any such] improvements (or portion thereof) to such
building, [or of any such] shipbuilding structure, [or of any such] improvements to such shipbuilding structure, [or of any such] residen-
tial unit, transmission line or cable or railway line which has or have been
scrapped within a period of ten years from the date of erection or
purchase, or in the case of any such residential unit in respect of which
any amount has fallen for inclusion in the taxpayer’s income under the
provisions of section
13ter(7)(a), whether in the current or in any
previous year of assessment;
for the purposes of this paragraph the cost of any building (or portion
thereof). [or of any] improvements (or portion thereof) to any building,
[or of any] shipbuilding structure, [or of any] improvements to any
shipbuilding structure, [or of any such] residential unit, transmission
line or cable or railway line
shall be deemed to be that portion of the
actual cost on which the allowance in question was made;”;
(d) by the substitution for subparagraph (B) of paragraph (old) of the proviso to
paragraph
(w) of the following subparagraph:
“(B) the only benefit payable under the policy is a benefit payable within
a period fixed in such policy upon or by reason of the death or
disablement of the employee or director whose life is insured under
the policy or the policy is a
[personal accident] disability policy as
defined in section 1 of the Long-term Insurance Act, [1943
(Act 27
of 1943)] 1998 (Act No. 52 of 1998); or”;
(e) by the substitution for paragraph ~) of the proviso to paragraph (w) of the
following paragraph: –
“@no deduction shall be made from the income of any taxpayer in respect of
premiums paid by him under any policy of insurance of which he is the
owner on the life of an employee of that taxpayer or, where the taxpayer
is a company, of a director or employee of that company, except in so far
5
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54 No. 21390 GOVERNMENT GAZE’lTE, 19 JULY 2000
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as an allowance may be made under this paragraph or, in the case of a
policy which is not a life policy or a [personal accident] disability
policy as defined in section 1 of the Long-term Insurance Act, [1943] ~, a deduction which may. in appropriate circumstances, be made
under paragraph
(a) or (b) of this section;”. 5
(2) (a) Subsection (1)(a) shall be deemed to have come into operation on 23 February
2000, and shall apply in respect of any amount incurred on or after that date.
(b) Subsection (1)(b) and (c) shall be deemed to have come into operation on 23
February 2000, and shall apply in respect of any transmission line or cable or railway
line contracted for and the construction, erection or installation of which commenced on 10
or after that date.
Insertion of section
12D in Act 58 of 1962
23. (1) The following section is hereby inserted after section 12C of the Income Tax
Act, 1962:
“Deduction in respect of certain pipelines, transmission lines and 15
railway Iines
12D. (1) For the purposes of this section—
‘affected asset’ means
any—
(a) pipeline used for the transportation of natural oil;
(b) line or cable used for the transmission of electricity;
(c) telephone Iine or cable used for the transmission of any signal for the
purposes of telecommunication; and
(d) railway line used for the transportation of persons, goods or things,
contracted for on or after the effective date, and the construction, erection 01
installation of which commenced on or after such date, and includes any
earthworks or supporting structures forming part of such pipeline.
transmission line or cable or railway line;
‘effective date’ means 23 February 2000; and
‘natural oil’ means any Iiquid or solid hydrocarbon or combustible gas
existing in a natural condition in the earth’s crust and includes any refined
by-products of such liquid or solid hydrocarbon or combustible gas.
(2) In respect of any new and unused affected asset
which—
(a) is owned by the taxpayer and is brought into use for the first time by
such taxpayer on or after the effective date; and
(b) is used directly by such taxpayer—
(i) in the production of his income; and
(ii) in carrying on his sole business
of—
(aa) the transportation of persons, goods. things or natural oil; or
(bb) the transmission of electricity or any telecommunication
signal,
there shall be allowed to be deducted an allowance in respect of the cost
actually incurred by the taxpayer in respect of the acquisition of such asset.
(3) The allowance contemplated in subsection (2) shall not for any one
year
exceed—
(a) 10 per cent of the cost incurred in respect of any asset contemplated in
paragraph
(a) of the definition of ‘affected asset’; or
(b) 5 per cent of the cost incurred in respect of any asset contemplated in
paragraph
(b), (c) or (d) of the definition of ‘affected asset’.
(4) For the purposes of this section the cost to a taxpayer of any affected
asset shall be deemed to be—
(a) where such asset has been acquired to replace any asset which has
been damaged or destroyed, the actual cost of such asset, less any
amount which has been recovered or recouped in respect of the
damaged or destroyed asset which has been excluded from the
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56 No. 21390 GOVERNMENT GAZETTE, 19 JULY 2CO0
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taxpayer’s income in terms of section 8(4)(e), whether in the current or
any previous year of assessment; or
(b) in any other case, the lesser of—
(i) the actual cost of acquisition of the asset incurred by the taxpayer;
5
(ii) %e cost which a person would, if he had acquired the said asset
under a cash transaction concluded at arm’s length on the date on
which the transaction for the acquisition of the said asset was in
fact concluded, have incurred in respect of the direct cost of
acquisition of the asset (including the direct cost of the
10
installation or erection thereof).
(5) No deduction shall be allowed under this section in respect of any
affected asset which has been disposed of by the taxpayer during any
previous year of assessment.
(6) The deductions which may be allowed in terms of this section and any 15
other provision of this Act in respect of the cost of any affected asset shall
not in the
aggregate exceed the amount of such cost.”.
(~) Subsection (I) shall be deemed to have come into operation on 23 February 2000, and shall apply in respect of any pipeline, transmission line or cable or railway line
contracted for and the construction, installation or erection of which commenced on or 20
after that date.
Substitution of section 18A of Act 58 of 1962, as inserted by section 15 of Act 52 of
1970 and substituted by section 16 of Act 96 of 1981 and amended by section 14 of
Act 91 of 1982, section 16 of Act 94 of 1983, section 16 of Act 121 of 1984, section 15
of Act 90 of 19S8, section 17 of Act 101 of 1990, section 20 of Act 129 of 1991 and 25
section 11 of Act 36 of 1996
24. (1) The following section is hereby substituted for Section 18A of the Income Tax
Act, 1962:
“Deduction of donations to certain public benefit organisations
18A. (1) There shall be allowed to be deducted from the taxable income
of any taxpayer so much of the sum of any bcmafide donations in cash or in
kind made by such taxpayer and actually paid or transferred during the year
of assessment to-
(a)
any—
(i) public benefit organisation approved by the Commissioner under
section 30; or
(ii) institution, board or body contemplated in section 10(1
)(cA)(i),
which carries on in the Republic any public benefit activity which is
determined by the Minister by notice in the Gazette for the purposes of
this section, a copy of which shall be laid upon the table in Parliament;
(b) any public benefit organisation approved by the Commissioner under
section 30,
which—
(i) provides funds solely to any public benefit organisation, institu-
tion, board or body contemplated in paragraph (a); and
(ii) during the year of assessment preceding the year of assessment of
such public benefit organisation during which the donation is
received, distributed or incurred the obligation to so distribute at
least 75 per cent of the funds received by or accrued to such
organisation by way of donations which qualified for a deduction
in terms of this section,
as does not exceed the greater
of—
(au) five per cent of the taxable income of the taxpayer as calculated before
allowing any deduction under this section or section 18; or
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58 No. 21390 GOVERNMENT GAZETTE, 19 JULY 2000
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(bb) R1 000.
(2) Any claim for a deduction in respect of any donation under subsection
(1) shall not be allowed unless supported by a receipt issued by the public
benefit organisation, institution, board or body concerned, on which
tht
following details are given, namely—
(a) the reference number of the public benefit organisation, institution
board or body issued by the Commissioner for the purposes of
this
section;
(b) the date of the receipt of the donation;
(c) the name of the public benefit organisation, institution, board or body
which received the donation, together with an address to which
enquiries may be directed in connection therewith;
(d) the name and address of the donor;
(e) the amount of the donation or the nature of the donation (if not made
in cash);
v) a certification to the effect that the receipt is issued for the purposes of
section 18A of the Income Tax Act, 1962, and that the donation has
been or will be used exclusively for the object of the public benefit
organisation, institution, board or body concerned.
(3) If any deduction is claimed by any taxpayer under the provisions of
subsection (1) in respect of any donation of property in kind, the amount of
such deduction shall be deemed to be an amount equal to-
(a) where such property constitutes trading stock of the taxpayer
(including any livestock or produce in respect of which the provisions
of paragraph 11 of the First Schedule are applicable), the amount
which has been taken into account for the purposes of section 22(8) or,
in the case of such livestock or produce, the said paragraph 11, in
relation to the donation of such property; or
(b) where such property (other than trading stock) constitutes an asset
used by the taxpayer for the purposes of his trade, the cost to the
taxpayer of such property less any allowance (other than any
investment allowance) allowed to be deducted from the income of the
taxpayer under the provisions of this Act in respect of that asset; or
(c) where such property does not constitute trading stock of the taxpayer
or an asset used by him for the purposes of his trade, the cost to the
taxpayer of such asset, less, in the case of a movable asset which has
deteriorated in condition by reason of use or other causes, a
depreciation allowance calculated in the manner contemplated in
section
8(5)( bB)(i); or
(d) where such property is purchased, manufactured, erected, assembled,
installed or constructed by or on behalf of the taxpayer in order to form
the subject of the said donation, the cost to the taxpayer of such
property.
(4) The provisions of subsections (9) and ( 10) of section 30 shall apply
mufafis mutandis in respect of any institution, board or body contemplated
in subsection (1)(a).
(5) If the Commissioner has reasonable grounds for believing that any
person who is in a fiduciary capacity responsible for the management or
control of the income or assets of any public benefit organisation,
institution, board or body has with
intent—
(a) in any material way failed to ensure that the objects for which the
public benefit organisation, institution, board or body was established
are carried out or has expended moneys belonging to the public benefit
organisation, institution, board or body for the purposes not covered
by such objects; or
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60No. 21390 GOVERNMENT GAZEITE, 19 JULY 2000
Act No. 30,2000 TAXATtON LAWS AMENDMENT ACT, 2000
(b) issued or allowed a receipt to be issued to any taxpayer for the
purposes of this section in respect of any fees or other emoluments
payable to such organisation, institution, board or body by such
taxpayer,
the Commissioner may by notice in writing addressed to that person direct 5
that donations to such fund shall not qualify for deduction under the
provisions of this section in respect of any year of assessment specified in
such notice, and any claim by any taxpayer for such deduction shall
accordindy be disallowed.”.
(2) Subsection (1) shall in so far as
it— 10
(a) determines the limit of the deduction as contemplated in section 18A(1), be
deemed to have come into operation on 1 March 2000, and shall apply in
respect of years of assessment commencing on or after that date; and
(b) amends the rest of section
18A, come into operation on a date fixed by the
President by proclamation in the Gazette.
15
(3) The public benefit activities determined by the Minister of Finance by notice in the
Gazerte as contemplated in section 18A(1)(a) of the Income Tax Act, 1962, shall be
incorporated into that Act within a period of 12 months after the date fixed by the
President in terms of subsection (2)(b).
Repeal of section 19 of Act 58 of 1962, as amended by section 15 of Act 90 of 1962, 20
section 6 of Act 6 of 1963, section 17 of Act 88 of 1965, section 17 of Act 88 of 1971,
section 14 of Act 90 of 1972, section 18 of Act 85 of 1974, section 14 of Act 104 of
1980, section 17 of Act 96 of 1981, section 15 of Act 91 of 1982, section 17 of Act 94
of 1983, section 17 of Act 121 of 1984, section 12 of Act 96 of 1985, section 12 of Act
65 of 1986, section 4 of Act 108 of 1986, section 13 of Act 85 of 1987, section 18 of 25
Act 101 of 1990, section 21 of Act 129 of 1991 and section 33 of Act 30 of 1998
25. (1) Section 19 of the Income Tax Act, 1962, is hereby repealed.
(2) Subsection (1) shall be deemed to have come into operation on 1 March 2000, and
shall apply in respect of any year of assessment commencing on or after that date.
Amendment of section 20 of Act 58 of 1962, as amended by section 13 of Act 90 of 30
1964. section 18 of Act 88 of 1965, section 13 of Act 76 of 1968, section 18 of Act 89
of 1969, section 15 of Act 65 of 1973, section 8 of Act 101 of 1978, section 18 of Act
94 of 1983, section 19 of Act 191 of 1990, section 16 of Act 113 of 1993, section 17 of
Act 21 of 1995 and section 15 of Act 28 of 1997
26. Section 20 of the Income Tax Act, 1962, is hereby amended by the addition to
subsection
( 1 ) of the following moviso:
“Provided that there sha~l ‘not be set off against any amount distributed to such
person by any pension fund or provident fund which is included in the gross
income of such person in terms of paragraph
(eB) of the definition of ‘gross
income’ in section 1,
any—
(a) balance of assessed loss; or
(b) ‘assessed loss’ as defined in subsection (2) incurred in such year before taking
into account any amount of such distribution.”.
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 23 of Act 85
of 1974, section 20 of Act 69 of 1975, section 15 of Act 103 of 1976, section 20 of Act
94 of 1983, section 19 of Act 121 of 1984, section 14 of Act 65 of 1986, section 5 of
Act 108 of 1986, section 21 of Act 101 of 1990, section 22 of Act 129 of 1991, section
17 of Act 113 of 1993, section 1 of Act 168 of 1993, section 19 of Act 21 of 1995,
section 12 of Act 36 of 1996 and section 25 of Act 53 of 1999
27. (1) Section 22 of the Income Tax Act, 1962, is hereby amended—
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62 No. 21390 GOVERNMENT GAZE’ITE. 19 JULY 2000
Act No. 3& 2000 TAXATION LAWS AMENDMENT ACT, 2000
(a) by the substitution for subsection (5) of the following subsection:
“(5) No person may for the purpose of determining the cost
Price of
anY trading stock, adopt the basis of trading stock valuation whereunder
the last item of any class of
trading stock acquired by him on any date is
deemed to be the first item of that class of trading stock disposed of by 5
him on or after that date.”;
(b) by the substitution for paragraph (c) of subsection (5A) of the following
paragraph:
“(c) the last-mentioned company contemplated in paragraph (a) is entitled to
a deduction as contemplated in subsection (3 B), [or a LIFO reserve as 10
contemplated in subsection (5)(d) has been determined in relation to
such last-mentioned company]”; and
(c) by the substitution for the words following on paragraph (c) of subsection
(5A) of the following words:
“the Commissioner may direct that, subject to such conditions as he may 15
impose, the said two companies shall for the purposes of subsection (3B )
[or paragraphs (d) and (e) of subsection (5), as the case may be] be
regarded as being one company.”.
(2) Subsection (1) shall be deemed to have come into operation on
1 July 2000, and
shall apply in respect of any year of assessment commencing on or after that date.
20
Amendment of section 23 of Act 58 of 1962, as amended by section 18 of Act 65 of
1973, section 20 of Act 121 of 1984, section 23 of Act 129 of 1991, section 20 of Act
141 of 1992, section 18 of Act 113 of 1993 and section 15 of Act 21 of 1994
28. (1) Section 23 of the Income Tax Act, 1962, is hereby
amended—
(a) by the substitution for paragraph (d) of the following paragraph: 25
“(d) any tax, duty, levy, interest or penalty imposed under this Act, any
additional tax imposed under section 60 of the Value-Added Tax Act,
1991 (Act No. 89 of 1991), and any interest or
penaltv LEWibk in . . . consequence of the late payment of an-y tax, duty or levy payable under
any Act administered by the Commissioner, the Regional Services
Councils Act, 1985 (Act No. 109 of 1985), [and] the KwaZulu and Natal
Joint Services Act, 1990 (Act No. 84 of 1990), and the Skills
Development Levies Act, 1999 (Act No. 9 of 1999);”; and
(b) by the addition of the following paragraphs:
“(k) any expense incurred by—
(i) a labour broker as defined in the Fourth Schedule, other than a
labour broker in respect of which a certificate of exemption has been
issued in terms of paragraph 2(5) of the said Schedule;
(ii) a personal service company as defined in the said Schedule; or
(iii) a personal service trust as defined in the said Schedule,
other than any expense which constitutes an amount paid or payable to
any employee of such
labour broker, company or trust for services
rendered by such employee, which is or will be taken into account in the
determination of the taxable income of such employee;
(1) any expense incurred in respect of the payment of any restraint of trade,
except as provided for in section
11 (cA).”.
(2) (a) Subsection (1)(a) shall come into operation on 1 April 2000 and shall apply in
respect of any year of assessment commencing on or after that date.
(b) Subsection
(1)(b) shall—
(i) in so far as it adds paragraph (k), be deemed to have come into operation on
1 April 2000, and shall apply in respect of any expense incurred on or after
that date; and
(ii) in so far as it adds paragraph (1), be deemed to have come into operation on 23
February 2000, and shall apply in respect of any expense incurred on or after
that date,
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64 No. 21390GOVERNMENT GAZETTE. 19 JULY 2000
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Amendment of section 23B of Act 58 of 1962, as inserted by section 25 of Act 129 of
1991 and amended by section 16 of Act 21 of 1994
29. Section 23B of the Income Tax Act, 1962, is hereby amended by the substitution
for subsection (1) of the following subsection:
“(1 ) Where, but for the provisions of this subsection, an
amount— 5
@ qualifies or has qualified for a deduction or an allowance; q
(& is otherwise taken into account in deterrninin~ the taxable income of any
person,
under more than one provision of this Act, [a deduction or allowance in
respect
ofl such amount or any portion thereof, shall not be allowed or taken 10
into account more than once as a deduction or allowance in the determination
of the taxable income of any person.”.
Substitution of section 23F of Act 58 of 1962, as inserted by section 17 of Act 21 of
1994
30. (1) The following section is hereby substituted for section 23F of the Income Tax 15
Act, 1962:
“Acquisition or disposal of trading stock
23F. ~ Where any taxpayer has during any year of assessment incurred
expenditure for the acquisition of trading stock which was neither disposed
of by him during such year nor held by him at the end of such year, any 20
deduction which may be allowed to him under the provisions of section
11(a) or(b) in respect of such expenditure shall not be allowed in such year,
but such expenditure shall for the purposes of such provisions be deemed to
have been incurred by him in the first subsequent year of assessment in
which— 25
(a) such trading stock is disposed of by him:
(b) the value of such trading stock falls to be included in his income under
the provisions of section 22(1); or
(c) it is shown by him that by reason of the loss or destruction of such
trading stock or the termination of the agreement in terms of which 30
such trading stock was acquired by him or for any other reason, such
trading stock
will neither be disposed of nor held by him,
to the extent that such expenditure ha; actualiy been paid-by such taxpayer.
(2) Where any taxpayer has during any year of assessment disposed of
any trading stock in the ordinary course of his trade for any consideration
the full amount of which will not accrue to him during such year of
assessment and any expenditure incurred in respect of the acquisition of
such trading stock was allowed as a deduction under the provisions
of
section 11(a) or(b) during such year or any previous year of assessment, the
amount of such expenditure so allowed as a deduction shall be deemed to
have been recovered or recouped by such taxpayer and be included in the
income of the taxpayer for the year of assessment during which such
trading stock was so disposed of, and there shall be allowed to be deducted
in—
(a) such year, so much of such expenditure which bears to the full amount
of such expenditure, the same ratio as the amount of such consider-
ation which has accrued to the taxpayer during such year bears to the
full amount of such consideration;
(b) any subsequent year of assessment, so much of such expenditure
which bears to the
full amount of such expenditure, the same ratio as
the amount of such consideration which has accrued to the taxpayer
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66 No. 21390 GOVERNMENT GAZETTE, 19 JULY 2000
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT, 2000
during such subsequent year bears to the full amount of such
consideration; or
(c) any year of assessment during which it is shown by such taxpayer that
the consideration will never accrue to him, so much of such
expenditure as has not been allowed as a deduction in terms of the
provisions of paragraph (a) or (b), to the extent that such expenditure
was actually paid.
(3) Where—
(a)
(b) any taxpayer has during any year of assessment in the ordinary course
of his trade disposed of any right or interest in any asset which
constitutes trading stock which has the effect that the remaining right
or interest in such asset held and not disposed of will not be included
in trading stock at the end of such
yeaq and
any expenditure incurred in resDect of the accmisition of such asset was . allowed as a deduction under the provisions-of section 11(a) or (b) or
was otherwise taken into account during such year or any previous
year of assessment,
there shall be deemed to have been recovered or recouped by such taxpayer
and be included in the income of such taxpayer for such year of assessment.
so much of such expenditure as relates to the remaining right or interest
contemplated in paragraph (a).”.
(2) Subsection (1) shall be deemed to have come into operation on 23 February 2000.
Insertion of section 23H in Act 58 of 1962
31. (1) The following section is hereby inserted after section 23G of the Income Tax
Act. 1962:
“Limitation of certain deductions
ear of assessment
actuallv
incurred any expenditure (other than expenditure incurred in respect of the
acquisition of any trading stock)—
(a)
(b)
which is allowable as a deduction in terms of the provisions of section
11(a), (b), (c) or (d); and
in respect of goods, services or any other benefit, all of which will not
be supplied or rendered to such person, or the full benefit of which
such person will not become
entitIed to during such year of
assessment,
the amount of the expenditure which shall be allowable as a deduction in
terms of such section in the said year and any subsequent year of
assessment, shall be limited to, in the case of expenditure incurred in
respect
of—
(i)
(ii)
(iii)
goods to be supplied, so much of the expenditure as relates to the
goods actually supplied to such person in such year of assessment; or
services to be rendered, an amount which bears to the total amount of
such expenditure the same ratio as the number of months in such year
during which such services are rendered bears to the total number of
months during which such services will be rendered; or
any other benefit to which such person will become entitled, an
amount which bears to the total amount of such expenditure the same
ratio as the number of months in such year during which such person
will be entitled to such benefit bears to the total number of months
during which such person will be entitled to such benefit:
Provided that the provisions of this section shall not
apply—
(aa) where all the goods or services are to be supplied or rendered within
six months after the end of the year of assessment during which the
expenditure was incurred, or such person becomes entitled to the full
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68 No, 21390 GOVERNMENT GAZEITE, 19 JULY 2000
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benefit in respect of which the expenditure was incurred within such
period; or
(bb) where the aggregate of all amounts of expenditure incurred by such
person, which would otherwise be limited by this section, does not
exceed R50 000; or
(cc) to any expenditure to which the provisions of section 241, 24J, 24K or
24L apply; or
(old) to any expenditure actually paid in respect of any unconditional
liability to pay an amount imposed by legislation.
(~) If the Commissioner is in any case satisfied that the apportionment of
the expenditure in accordance with subsection ( 1 ) does not reasonably
represent a fair apportionment of such expenditure in respect of the goods,
services or benefits to which it relates, he may direct that such
apportionment be made in such other manner as to him appears
hir and
reasonable.
(3) Notwithstanding the provisions of subsections(1) and (2), where it is
during any year of assessment shown by any person that—
(a) the goods or services in respect of which the expenditure is incurred
will never be received by or be rendered to such person; or
(b) such person will never become entitled to such other benefit in respect
of which any expenditure is incurred,
such expenditure shall be allowed in such year, to the extent that such
expenditure has been actually paid by such person.
(4) The exercise by the Commissioner of his discretion contemplated in
subsection (2) shall be subject to objection and appeal.”.
(2) Subsection (1) shall be deemed to have come into operation on 23 February 2000,
and shall apply in respect of any expenditure incurred on or after that date.
Repeal of section 24B of Act 58 of 1962, as inserted by section 9 of Act 101 of 1978
and substituted by section 13 of Act 104 of 1979 and amended
by section 20 of Act
113 of 1993
32. Section 24B of
the Income Tax Act. 1962, is hereby repealed,
5
10
15
~o
25
30
Amendment of section 28 of Act 58 of 1962, as amended by section 17 of Act 90 of
1962, section 22 of Act 55 of 1966, section 24 of Act 89 of 1969, section 21 of Act S8
of 1971, section 19 of Act 65 of 1973, section 19 of Act 91 of 1982, section 22 of Act
94 of 1983, section 17 of Act 65 of 1986, section 23 of Act 90 of 1988, section 13 of 35
Act 70 of 1989, section 25 of Act 101 of 1990, section 29 of Act 129 of 1991, section
24 of Act 113 of 1993 and section 19 of Act 21 of 1994
33. Section 28 of the Income Tax Act,
1962, is hereby amended—
(a) by the deletion of subsections (1), (1A), ( lB) and (l C):
(b) by the substitution for subsection (3) of the following subsection: 40
“(3) Nothing in this section contained shall be construed as relieving
any taxpayer from the obligation to render returns of any income derived
otherwise than from the carrying on of [long-term or] short-term
insurance business or in the form of dividends [(notwithstanding the
inclusion of such dividends or of a portion thereof in the gross 45
amounts referred to in subsection (l))] or from any liability for
taxation in respect of any taxable income so derived or as depriving the
taxpayer of the right to set off against the taxable income derived from
the business of insurance any loss
incumed in respect of any other
business or any balance of loss so incurred which the taxpayer would be 50
entitled to set off under the provisions of section 20.”;
(c) by the deletion of the definition of“long-term insurance business” in
subsection (4);
(d) by the substitution for the definition of “short-term insurance business” in
subsection (4) of the following definition: 55

70 No. 21390 GOVERNMENT GAZETTE. 19 JULY 2000
Act
No. 30,2000 TAXATION LAWS AMENDMENT Am, 2000
“ ‘short-term insurance business’ means any short-term insurance
business [other than long-term insurance business] as defined in the
Short-term Insurance Act, 1998 (Act No. 53 of 1998).”.
Amendment of section 28bis of Act 58 of 1962, as inserted by section 19 of Act 88 of
1965 and amended by section 25 of Act 89 of 1969, section 25 of Act 85 of 1974, 5
section 18 of Act 113 of 1977 and section 23 of Act 94 of 1983
34. Section 28bis of the Income Tax Act, 1962, is hereby amended by the substitution
for paragraph (b) of subsection (1) of the following paragraph:
“(b) that at the time the arrangement was implemented, all the issued shares of the
subsidiary were held for its own benefit by the foreign company or a company 10
which was inco~orated, managed and controlled outside the Republic and
was controlled by or controlled the foreign company, [or that the
arrangement was implemented in order to meet the requirements of
section 3qwzt of the Insurance Act, 1943 (Act 27 of 1943)]’”.
Insertion of section 30 in Act 58 of 1962
35. (1) The following section is hereby inserted after section 29A of the Income Tax
act, 1962:
“Public benefit organisations
30. (1) For the purposes of this Act—
‘public benefit activity’
means—
(a) any activity determined by the Minister in terms of subsection (2); and
(b) the providing of funds t~
(i) any public benefit organisation which has been approved in terms
of this section;
(ii) any institution, board or body contemplated in section
10( 1
)(cA)(i), of which at least 75 per cent of its resources are
applied in the furtherance of a public benefit activity contem-
plated in paragraph
(a); or
(iii) any association of persons carrying on one or more such public
benefit activity in the Republic:
‘public benefit organisation’ means any organisation of a public
charac-
ter—
(a)
(b)
which is a company formed and incorporated under section 21 of the
Companies Act, 1973 (Act No. 61 of 1973), or a trust or an association
of persons; and
of which the sole object
is—
(i) subject to the provisions of subsection (3)(b)(iv), to carry on one
or more public benefit activities in a non-profit manner;
(ii) to carry out all such activities (or substantially the whole thereof)
in the Republic, unless the Minister, having regard to the
circumstances of the case, directs otherwise.
(2) (a)
l’he Minister shall, by notice in the Gazefte, determine any
activity which is of a philanthropic and benevolent nature, having regard to
the needs, interests and well-being of the general public for the purposes of
this section.
(b) A copy of the notice contemplated in paragraph (a) shall be laid upon
the Table in Parliament as soon as practicable.
(3) The Commissioner shall, for the purposes of this Act, approve a
public benefit organisation
which—
(a)
(b)
complies with such conditions as the Minister may prescribe by way of
regulation to ensure that the activities and resources of such
organisation are directed in the furtherance of its object;
has submitted to the Commissioner a copy of the constitution, will or
other written instrument under which it has been established and in
terms of which it
is—
15

~~ No. 21390
GOVERNMENT GAZETTE. 19 JULY 2000
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT, 2000
(i) required to have at least three persons, who are not connectec
persons in relation to each other, to accept the fiduciag
responsibility y of such organisation;
(ii) prohibited from distributing any of its funds to any persor
(otherwise than in the course of undertaking any public benefi
activity) and is required to utilise its funds solely for the
objecl
for which it has been established, or to invest such funds—
(au) with a financial institution as defined in section 1 of tht
Financial Institutions (Investment of Funds) Act, 1984 (Ac[
No. 39 of 1984);
(bb) in securities listed on a stock exchange as defined in section
1 of the Stock Exchanges Control Act, 1985 (Act No. 1
o~
1985); or
(cc) in such other prudent investments in financial instruments
and assets as the Commissioner may determine after consul-
tation with the Executive Officer of the Financial Services
Board and the Director of Non-Profit Organisations:
Provided that the provisions of this subparagraph shall not
prohibit any such organisation from retaining any investment
(other than any investment in the form of a business undertaking
or trading activity or asset which is used in such business
undertaking or trading activity) in the form that it was acquired
by way of donation, bequest or inheritance;
(iii) required on dissolution to transfer its assets to any similar public
benefit organisation which has been approved in terms of this
section;
(iv) prohibited from carrying on any business undertaking or trading
activity, otherwise than to the extent
that—
(au) the gross income derived from such business undertaking or
trading activity does not exceed the greater
of—
(A) 15 per cent of the gross receipts of such public benefit
organisation; or
(B) R25 000;
(bb) the undertaking or activity is—
(A) integral and directly related to the sole object of such
public benefit organisation; and
(B) carried out or conducted on a basis substantially the
whole of which is directed towards the recovery of cost
and which would not result in unfair competition in
relation to taxable entities;
(cc) the undertaking or activity, if not integral and directly related
to the sole object of such public benefit organisation as
contemplated in item
(bb), is of an occasional nature and
undertaken substantially with assistance on a voluntary basis
without compensation; or
(old) the undertaking or activity is approved by the Minister by
notice in the Gazette, having regard to-
(A) the scope and benevolent nature of the undertaking or
activity;
(B) the direct connection and interrelationship of the under-
taking or activity with the sole purpose of the public
benefit
organsiation;
(C) the profitability of the undertaking or activity; and
(D) the level of economic distortion that may be caused by
the tax exempt status of the public benefit organisation
carrying out the
undettaldng or activity;
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74 No. 21390 GOVERNMENT GAZEITE, 19 JULY 2000
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT, 2000
(v) prohibited from accepting any donation which is revocable at tb
instance of the donor for reasons other than a material failure t(
conform to the designated purposes and conditions of SUCI
donation, including any misrepresentation with regard to the ta:
deductibility thereof in terms of section 18A: Provided that ;
donor may not impose conditions which could enable such dono
or any connected person in relation to such donor to derive
som(
direct or indirect benefit from the application of such donation;
(vi) required to submit to the Commissioner a copy of any amend
ment to the constitution, will or other written instrument uncle
which it was established;
(c) the Commissioner is satisfied is or was not knowingly a party to, o
does not knowingly permit, or has not knowingly permitted, itself
tt
be used as part of any transaction, operation or scheme of which th(
sole or main purpose is or was the reduction, postponement o
avoidance of liability for any tax, duty or levy which, but for
SUC1
transaction, operation or scheme, would have been or would haw
become payable by any person under this Act or any other Ac
administered by the Commissioner;
(d) has not paid any remuneration to any employee, office bearer, membe
or other person which is excessive, having regard to what is generall~
considered reasonable in the sector and in relation to the servict
rendered;
(e) complies with such reporting requirements as may be determined bj
the ComrnissioneC
~) the Commissioner is satisfied that, in the case of any public benefi
organisation which provides funds to any association of persom
contemplated in paragraph (b)(iii) of the definition of ‘public benefi
activity’, has taken reasonable steps to ensure that the funds
art
utilised for the purpose for which it has been provided; and
(g) has, within such period as the Commissioner may determine, beer
registered in terms of section 13(5) of the Non-profit Organisations
Act, 1997 (Act No. 71 of 1997), and complied with any
othel
requirements imposed in terms of that Act:
Provided that notwithstanding subparagraph (iv) of paragraph (b),
any
business undertaking or trading activity, or asset used in such undertaking
or activity, acquired by such organisation before 1 January 2001 by way 01
donation, bequest or inheritance may be retained or continued, as the case
may be, in the form so acquired for a period of five years after that date.
(4) Where the constitution, will or other written instrument does
noi
comply with the provisions of subsection (3)(b), it shall be deemed to sc
comply—
(a) in the case of a public benefit organisation established under the terms
of a
wilI, or under a constitution or other written instrument which
cannot be amended to comply with the said subsection; or
(b) in any other case, for a period not exceeding five years,
if the person responsible in a fiduciary capacity for the funds and assets of
such organisation furnishes the Commissioner with a written undertaking
that such organisation will be administered in compliance with the
provisions of this section.
(5) Where the Commissioner
is—
(a) satisfied that any public benefit organisation approved under subsec-
tion (3) has during any year of assessment in any material respect; or
(b) during any year of assessment satisfied that any such public benefit
organisation has on a continuous or repetitive basis,
failed to comply with the provisions of this section, or the constitution, will
or other written instrument under which it is established to the extent that it
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76 No. 21390GOVERNMENT GAZETTE, 19 JULY 2000
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT, 2000
relates to the provisions of this section, he may after due notice withdraw h
approval of the organisation with effect from the commencement of that
ye:
of assessment.
(6) Where the Commissioner has so withdrawn his approval of suck
organisation, such organisation shall, within three months or such longel
period as the Commissioner may allow after the date of such withdrawal
transfer, or take reasonable steps to transfer. its remaining assets to
any
other organisation which is—
(a) approved in terms of this section; and
(b) not a connected person in relation to such organisation.
(7) Where any such organisation fails so to transfer, or so to take
reasonable steps to transfer, its remaining assets, the accumulated
nel
revenue which has not been distributed in terms of this section shall for the
purposes of this Act be deemed to be an amount of taxable income which
accrued to such organisation during the year of assessment referred to in
subsection (5).
(8) The provisions of this section shall not, if the Commissioner is
satisfied that the non-compliance giving rise to the withdrawal contem-
plated in subsection (5) has been rectified, preclude any such organisation
from applying for approval in terms of this section in the year of assessment
following the year of assessment during which the approval was so
withdrawn by the Commissioner.
(9) Any books of account, records or other documents relating to any
approved public benefit organisation
shall—
(a) where kept in book form, be retained and carefully preserved by any
person in control of such organisation for a period of four years after
the date of the last entry in any book; or
(b) where not kept in book form, be retained and carefully preserved by
any person in control of such organisation for a period of four years
after completion of the transactions, acts or operations to which they
relate.
(10) In the application of the provisions of this Act, the Commissioner
may by notice in writing require any person whom the Commissioner may
deem able to furnish information in regard to any approved public benefit
organisation—
(a) to answer any questions relating to such organisation: or
(b) to make available for inspection by the Commissioner or any person
appointed by him, any books of account, records or other documents
relating to such organisation; or
(c) to attend at the time and place appointed by the Commissioner for the
purposes of producing for examination by the Commissioner or any
person appointed by him, any books of account, records or other
documents relating to such organisation.
(11 ) Any decision of the Commissioner in the exercise of his discretion
under this section shall be subject to objection and appeal.
(12) Any person who is in a fiduciary capacity responsible for the
management or control of the income and assets of any approved public
benefit organisation who intentionally fails to comply with any provision of
this section or of the constitution, will or other written instrument under
which such organisation is established to the extent that it relates to the
provisions of this section, shall, be guilty of an offence and on conviction be
liable to a fine or to imprisonment for a period not exceeding two years.”.
(2) Subsection (1) shall come into operation on a date fixed by the President by
m-oclamation in the Gazette.
5
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45
50
(3) The public benefit activities determined by the Minister by notice in the Ga:ette 55
as contemplated in section 30(2) of the Income Tax Act, 1962, shall be incorporated into
that Act within a period of 12 months after the date determined by the President in terms
of subsection (2).

78 No. 21390 GOVERNMENT GAZETTE, 19 JULY 2000
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT, 2000
Amendment of section 38 of Act 58 of 1962, as amended by section 21 of Act 90 of
1962, section 16 of Act 90 of 1964, section 28 of Act 89 of 1969, section 31 of Act 85
of 1974, section 27 of Act 94 of 1983, section 24 of Act 121 of 1984 and section 32 of
Act 53 of 1999
36. (1) Section 38 of the Income Tax Act, 1962, is hereby amended by the substitution 5
for paragraph
(i) of subsection (2) of the following paragraph:
“(i) any unit portfolio referred to in paragraph (e)~ of the definition of ‘company’
in section one.”,
(2) Subsection (1) shall be deemed to have come into operation on 23 February 2000.
Amendment of section 55 of Act 58 of 1962, as amended by section 25 of Act 90 of 10
1988 and section 22 of Act 28 of 1997
37. Section 55 of the Income Tax Act, 1962, is hereby amended by the substitution for
paragraph (k) of subsection (2) of the following paragraph:
“(k) There shall be no appearance by or on behalf of either party before the Board,
whose decision shall be
[final and shall be] communicated in duplicate to the 15
Commissioner who shall
forward one copy thereof to the donor.”.
Amendment of section 56 of Act 58 of 1962. as amended by section 18 of Act 90 of
1964, section 25 of Act 55 of 1966, section 33 of Act 89 of 1969, section 38 of Act 85
of 1974, section 21 of Act 113 of 1977, section 13 of Act 101 of 1978, section 23 of Act
96 of 1981, section 31 of Act 94 of 1983, section 4 of Act 30 of 1984, section 28 of Act
20
121 of 1984, section 18 of Act 96 of 1985, section 21 of Act 85 of 1987, section 26 of
Act 90 of 1988, section 28 of Act 141 of 1992, section 32 of Act 113 of 1993, section
18 of Act 36 of 1996 and section 39 of Act 30 of 1998
38. (l) Section 56 of the Income Tax Act, 1962, is hereby
amended—
(a) by the substitution for paragraph (h) of subsection (1) of the following 25
paragraph:
“(h) by or to any person (including any government) referred to in section
10(l)(a),
(b), (cA), [(cB), (cC), (cD)](cE). [(cF), (cI), (cJ), (cL)]~,
(d) g (e) [or &A)];”: and
(b) by the deletion of paragraphs (i) and fj) of subsection (1). 30
(2) Subsection (1) shall come into operation on a date fixed by the President by
proclamation in the Gazette. and shall apply in respect of any donation made on or after
that date.
Amendment of section 64B of Act 58 of 1962, as inserted by section 34 of Act 113 of
1993 and amended by section 12 of Act 140 of 1993, section 24 of Act 21 of 1994, 35
section 29 of Act 21 of 1995, section 21 of Act 36 of 1996, section 13 of Act 46 of 1996,
section 25 of Act 28 of 1997 and section 35 of Act 53 of 1999
39. (1) Section
(54B of the Income Tax Act, 1962, is hereby amended—
(a) by the substitution for the words preceding the proviso to subsection (3) of the
following words:
40
“The net amount of any dividend referred to in subsection (2) shall be the
amount by which such dividend declared by a company exceeds the sum
of any dividends (other than any dividends contemplated in subsection
(5)(b), (c),
(d) and ~) or any foreign dividends as defined in section 9EZ
but including foreign dividends which are exempt in terms of section 45
9E(7)(a), (b), (c), (d) or (c)(ii)), which have during the dividend cycle in
relation to such firstmentioned dividend accrued to the company:”:
(b) by the substitution for paragraph (d) of subsection (5) of the following
paragraph:
“(d) so much of any dividend declared by a unit portfolio referred to in 50
paragraph (e)@ of the definition of ‘company’ in section 1 as represents
a distribution of interest or of dividends referred to in section 11(s)
received by or accrued to such unit portfolio;”;

80 No. 21390 GOVERNMENT GAZETTE, 19 JULY 2000
Act h’o. 30,2000 TAXATION LAWS AMENDMENT ACT, 2000
(c) by the substitution for paragraph (j) of subsection (5) of the following
paragraph:
“(j) any dividend declared by a company contemplated in paragraph (e)~ of
the definition of ‘company’ in section 1.“;
(d) by the substitution for paragraph (a) of subsection (6) of the following
paragraph:
“(a) If any dividend subject to the payment of secondary tax on companies
has been declared by a company which derives profits from sources
within and outside the Republic, the secondary tax on companies in
respect of that dividend shall be calculated on an amount which bears to
the net amount of that dividend the same ratio as the sum of the net
annual profits of the company derived from sources within or deemed to
be within the Republic in terms of section 9, [or] 9C ~ bears to the
total sum of its net annual profits derived from all sources.”; and
(e) by the substitution for subparagraph (i) of paragraph (b) of subsection (6) of
the following subparagraph:
“(i) the net annual profits of a company shall be determined by excluding
profits derived by way of dividends (other than taxable foreign dividends
contemplated in section 9E); and”:
(2) Subsection (1) shall be deemed to have come into operation on 23 February 2000,
and shall apply in respect of any foreign dividend—
(i)
(ii)
received by or accmed to any person on or after that date; or
which accrued to the person before 23 February 2000, but which is received
on or after that date:
%ovided that the provisions of this paragraph shall not
apply in respect of any dividend declared by a company before 23 February
2000,
where—
(aa) such company is listed on a recognised stock exchange; or
(bb) in any other case, the chief executive officer and—
(A) an external auditor of the company; or
(B) where a company is situated in a country which does not require
compulsory appointment of an external auditor, a registered public
accountant of the same standing as a qualified chartered accountant,
have declared under oath or affirmation that such dividend was actually
declared by the company before 23 February 2000.
Amendment of section 64C of Act 58 of 1962, as inserted by section 34 of Act 113 of
1993 and amended by section 13 of Act 140 of 1993, section 25 of Act 21 of 1994,
section 30 of Act 21 of 1995, section 22 of Act 36 of 1996, section 40 of Act 30 of 1998
and section 36 of Act 53 of 1999
40. (1) Section 64C of the Income Tax Act, 1962, is hereby amended—
(a) by the substitution for paragraph (b) of the definition of “recipient” in
subsection (l) of the following paragraph:
“(b) any [relative of such] connected person in relation to a shareholder; or”;
and
(b) by the deletion of paragraph (c)of the definition of “recipient” in subsection
(l).
(2) Subsection (1) shall be deemed to have come into operation on 23 February 2000.
Amendment of section 66 of Act 58 of 1962, as amended by section 10 of Act 6 of
1963, section 19 of Act 90 of 1964, section 27 of Act 88 of 1971, section 22 of Act 91
of 1982, section 19 of Act 65 of 1986, section 23 of Act 85 of 1987, section 37 of Act
101 of 1990 and section 26 of Act 21 of 1994
41. Section 66 of the Income Tax Act, 1962, is hereby amended by the substitution for
item (aa) of subparagraph (ii) of paragraph (b) of subsection (1) of the following item:
“(aa) any amount derived by way of interest or taxable dividends [contemplated
in section 19(5A)] if the aggregate of such interest and dividends [exceeded
R2 ooo]—
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82 No. 21390 GOVERNMENT GAZHTE, 19 JULY 2000
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT, 2000
(A) in the case of any person who was or, had he lived would have been, at
least 65 years of
age on the last day of the year of assessment, exceeded
R4 000; or
(B) in any other case, exceeded R3 000; or”.
Amendment of section 70 of Act 58 of 1962, as amended by section 11 of Act 6 of
1963, section 20 of Act 90 of 1964, section 43 of Act 85 of 1974, section 24 of Act 69
of 1975, section 26 of Act 28 of 1997 and section 37 of Act 53 of 1999
42. Section 70 of the Income Tax Act, 1962, is hereby amended by the substitution for
subsection (2) of the following subsection:
“(2) Where, during any period of tweive months ending on the last day of
February in any year, any cash or any asset the amount or value of which in whole
or part constitutes a dividend as defined in section 1, is given to shareholders in any
company or a company distributes to shareholders any amount which constitutes a
dividend so defined, whether by way of an award of capitalization shares or bonus
debentures or securities or otherwise, the company concerned shall, within thirty
days after the end of the said period, or within such further period as the
Commissioner may
allow—
(@
(bJ
furnish the Commissioner with a return szivin~ the full name and address of
each shareholder and the amount of the di~iden~ accruing to such shareholde~
@
where such dividend represents an amount of any foreivn dividend as
determined in accordance with the provisions of section 9E and such company
is a resident as defined in section 9C, notify each shareholder who is a resident
of the amount of such foreign dividend.”.
Amendment of section 74C of Act 58 of 1962, as inserted by section 14 of Act 46 of
1996 and amended by section 28 of Act 28 of 1997
43. Section 74C of the Income Tax Act, 1962, is hereby amended—
(a) by the substitution for paragraph (b) of subsection (8) of the following
paragraph:
“(b) have the same powers—
~ to enforce the attendance of witnesses and to compel them to give
evidence or to produce evidential material;
@
@ relating to contempt committed during the proceedings,
as are vested in a President of the Special Court contemplated in section
83, and for those purposes sections 84 and 85 shall
apply mutatis
mutandis; and”.
(b) by the substitution for subsections (11), (12) and (13) of the following
subsections:
“(1 1) Any person whose affairs are investigated in the course of an
inquiry contemplated in this section, shall be entitled to be present
[throughout] z the inquiry during such time as his affairs are
investigated, unless on application by the person contemplated in
subsection (1), the presiding officer directs otherwise on the ground that
the presence of the person and his representative, or either of them,
would be prejudicial to the effective conduct of the inquiry.
(12) Any person contemplated in subsection (9) has the right to [a
representative of his choice] have a
legal representative present during
the time that he appears before the presiding officer.
(13) An inquiry contemplated in this section shall [not be public] ~
private and confidential and the presiding officer shall at any time on
application [ofl ~ the person whose affairs are investigated or any other
person giving evidence or the person contemplated in subsection (1),
exclude from such inquiry or require to withdraw therefrom, all or any
persons whose attendance is not necessary for the inquiry.”;
(c) by the substitution for subsection 15) of the following subsection:
“(15) The provisions with
regard to the preservation of secrecy
contained in section 4 shall mutatis mutandis apply to anY person present
5
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84 No. 21390 GOVERNMENT GAZHTE, 19 JULY 21X)0
Act No. 30,2000 TAXATtON LAWS AMENDMENT ACT, 2000
at the questioningof anyperson contemplated in subsection (9),
including the person being q
uestioned. ”;
(d) by the addition of the following subsections:
“(16) Subject to subsection (17), the evidence given under oath or
solemn declaration at an inquiry may be used by the Commissioner in
5
any subsequent proceedings to which the person whose affairs are
investigated is a party or to which a person who had dealings with such
person is a party.
(17) (a) No person may refuse to answer any question during an
inquiry on the grounds that it may incriminate him.
10
(b) No incriminating evidence so obtained shall be admissible in any
criminal proceedings against the person giving such evidence, other than
in proceedings where that person stands trial on a charge relating to the
administering or taking of an oath or the administering or making of an
affirmation or the giving of false evidence or the making of a false
15
statement in connection with such questions and answers, or a failure to
answer questions lawfully put to him, fully and satisfactorily.
(18) An inquiry in terms of this section shall proceed notwithstanding
the fact that any civil or criminal proceedings are pending or contem-
plated against or involving any person contemplated in subsection (6)(c) 20
or any witness or potential witness or any person whose affairs may be
investigated in the course of such inquiry.”.
Amendment of section 75 of Act 58 of 1962, as amended by section 40 of Act 101 of
1990, section 34 of Act 129 of 1991, section 30 of Act 141 of 1992, section 35 of Act
113 of 1993, section 27 of Act 21 of 1994, section 15 of Act 46 of 1996 and section 39 25
of Act 53 of 1999
44. Section 75 of the Income Tax Act, 1962, is hereby amended by the substitution for
the words following on paragraph (g) of subsection (1) of the following words:
“shall be guilty of an
offence and liable on conviction to a fine [not exceeding
R2 000] or to imprisonment for a period not exceeding 12 months [or to both such 30
fine and such imprisonment].”.
Amendment of section 83 of Act 58 of 1962, as amended by section 21 of Act 90 of
1964, section 22 of Act 103 of 1976, section 15 of Act 104 of 1979, section 19 of Act
96 of 1985, section 16 of Act 70 of 1989, section 36 of Act 129 of 1991, section 36 of
Act 113 of 1993 and section 30 of Act 28 of 1997 35
45. Section 83 of the Income Tax Act, 1962, is hereby amended—
(a) by the substitution for paragraph (a) of subsection (19) of the following:
“[(a)] The President of the court may indicate which judgments or decisions
of the COUH he considers ought to be published for general information, ~
such form as does not reveal the identity of the appellant.”; and 40
(b) by the deletion of paragraphs (b) and (c) of subsection ( 19).
Amendment of section 84 of Act 58 of 1962
46. Section 84 of the Income Tax Act, 1962, is hereby amended by the substitution for
subsection (2) of the following subsection:
“(2) If any person who has been duly subpoenaed to give evidence at the hearing 45
of an appeal or to produce any book, record, document or thing in his possession or
under his control, fails without reasonable cause to attend or to give evidence or to
produce that book, record, document or thing according to the subpoena or, unless
excused by the President of the court, to remain in attendance throughout the
proceedings, the President of the court may, upon being satisfied upon oath or by 50
the return of the person by whom the subpoena was served, that such person has
been duly subpoenaed and that his reasonable expenses have been paid or offered

86 No. 21390 GOVERNMENT GAZEITE, 19 JULY 2000
Act No. 30,2000 TAXATtON LAWS AMENDMENT ACT, 2000
to him, impose upon the said person a fine [not exceeding fifty rand] or in default
of payment imprisonment for a period not exceeding three months.”.
Amendment of section 85 of Act 58 of 1962
47. Section 85 of the Income Tax Act, 1962, is hereby amended by the substitution for
subsection (1) of the following subsection: 5
“(1 ) If during the sitting of a special court, any person wilfully insults a member
of the court or any officer of the court attending at the sitting, or
wilfully interrupts
the proceedings of the court or otherwise misbehaves himself in the place where the
court is held, the President of the court may make an order committing that person
to imprisonment for any period not exceeding three months or order that person to 10
pay a fine [not exceeding one hundred rand] or in default of payment thereof to
be imprisoned for such
a period.”.
Substitution of section 99 of Act 58 of 1962
48. The following section is hereby substituted for section 99 of the Income Tax Act.
1962: 15
“Power to appoint agent
99. The Commissioner may, if he thinks necessary. declare any person to
be the agent of any other person, and the person so declared an agent shall
be the agent for the purposes of this Act and may be required to make
payment of any tax, interest or penalty due from any moneys, including 20
pensions, salary, wages or any other remuneration, which may be
held by
him or due by him to the person whose agent he has been declared to be.”.
Amendment of section 101 of Act 58 of 1962, as amended by section 29 of Act 90 of
1962, section 22 of Act 52 of 1970, section 39 of Act 94 of 1983, section 40 of Act 129
of 1991 and section 27 of Act 36 of 1996 25
49. (1) Section 101 of the Income Tax Act, 1962, is hereby amended by the
substitution for subsection ( 1 ) of the following subsection:
“(1
) Every company carrying on business or having an office in the Republic and
every unit portfolio constituting a company in terms of paragraph (e)@ of the
definition of ‘company’ in section one, shall at all times be represented by an
30
individual residing therein.”.
(2) Subsection (1) shall be deemed to have come into operation on 23 February 2000.
Amendment of section 104 of Act 58 of 1962
50. Section 104 of the Income Tax Act, 1962, is hereby amended by the substitution
for the words following on paragraph
(d) of subsection (1) of the following words: 35
“shall be guilty of an offence and liable on conviction to a fine [not exceeding one
thousand
rand] or to imprisonment for a period not exceeding two years [or to
both such fine and such imprisonment].”’.
Amendment of section 106 of Act
58 of 1962, as substituted by section 29 of Act 69
of 1975 and amended by section 26 of Act 103 of 1976 40
51. (1) Section 106 of the Income Tax Act, 1962, is hereby amended by the
substitution for subparagraph (ii) of paragraph (d) of subsection
(2) of the following
subparagraph:
“(ii) if left with some adult person apparently residing at or occupying or employed
at the place appointed by the company under subsection (5) of section 101 or, 45
in the case of any unit portfolio referred to in paragraph (e)@ of the definition
of’ company’ in section 1, the public officer of which is the trustee referred to
in the said subsection (5), by such trustee, or where no such place has been

88 No. 21390 GOVERNMENT GAZETTE, 19 JULY 2000
Act No. 30,2000 TAXATtON LAWS AMENDMENT ACr, 2000
appointed by the company or trustee, as the case may be, if left with some
adult person apparently residing at or occupying or employed at the last
known office or place of business of the company or trustee, as the case may
be, in the Republic; or”.
(2) Subsection (1) shall be deemed to have come into operation on 23 February 2000. 5
Amendment to paragraph 1 of Fourth Schedule to Act 58 of 1962, as added by
section 19 of Act 6 of 1963 and amended by section 22 of Act
72 of 1963? section 44
of Act 89 of 1969, section 24 of Act 52 of 1970, section 37 of Act 88 of 1971, section
47 of Act 85 of 1974, section 6 of Act 30 of 1984, section 38 of Act 121 of 1984, section
20 of Act 70 of 1989, section 44 of Act 101 of 1990, section 44 of Act 129 of 1991, 10
section 33 of Act 141 of 1992, section 48 of Act 113 of 1993, section 16 of Act 140 of
1993, section 37 of Act 21 of 1995, section 34 of Act 36 of 1996, section 44 of Act 28
of 1997 and section 52 of Act 30 of 1998
52. (1) Paragraph 1 of the Fourth Schedule to the Income Tax Act, 1962, is hereby
amended— 15
(a) by the addition to the definition of “employee” of the following paragraphs:
“~ any personal service company; and
~ any personal service trust;”;
(b) by the substitution for the definition of
“labour broker” of the foilowing
definition:
20
“ ‘labour broker’ means any person who conducts or carries on any
business whereby such person for reward provides a client of such
business with other persons [(other than any person who qualifies as a
labour broker under this definition)] to render a service or perform
work for such client, or procures such other persons for the client, for 25
which services or work such other persons are remunerated by such
person;”; and
(c) by the insertion after the definition of “labour broker” of the following
definitions:
“ ‘yersonal service company’ means any company(other than a corn- 30
pany which is a
labour broker), where any service rendered on behalf of
such company to a client of such company is rendered personally by any
person who is a connected person in relation to such company, and—
(a) such person would be regarded as an employee of such client if such
service was rendered by such person directly to such client, other
than on behalf of such company; or
(b) such person or such company is subject to the control or supervision
of such client as to the manner in which, or hours during which, the
duties are performed or are to be performed in rendering such
service; or
(c) the amounts paid or payable in respect of such service consist of, or
include, earnings of any description which are payable at regular
daily, weekly, monthly or other intervals; or
(d) where more than 80 per cent of the income of such company during
the year of assessment, from services rendered, consists of or is
likely to consist of amounts received directly or indirectly from any
one client of such company, or any associated institution as defined
in the Seventh Schedule to this Act, in relation to such client,
except where such company throughout the year of assessment, employs
more than three full-time emdovees who are on a full-time basis . . engaged in the business of such company of rendering any such service,
other than any employee who is a shareholder or member of the company
or is a connected person in relation to such person;
‘personal service trust’ means any trust (other than a trust which is a
labour broker), where any service rendered on behalf of such trust to a
client of such trust is rendered personally by any person who is a
connected person in relation to such trust,
and—
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90 No. 21390GOVERNMENT GAZETTE, 19 JULY 2000
Act No. 30,2000
(a)
(b)
(c)
(d)
TAXATtON LAWS AMENDMENT ACT, 2000
such person would be regarded as an employee of such client if such
service was rendered by such person directly to such client other
than on behalf of such trust; or
such person or such trust is subject to the control or supervision of
such client as to the manner in which, or hours during which, the
duties are performed or are to be performed in rendering such
service; or
the amounts paid or payable in respect of such service consist of, or
include, earnings of any description which are payable at regular
daily, weekly, monthly or other intervals; or
where more than 80 per cent of the income of such trust
during the
year of assessment, from services rendered, consists of or is lik~y to
consist of amounts received directly or indirectly from any one
client of such trust, or associated institution as defined in the
Seventh Schedule to this Act, in relation to such client,
except where such trust throughout the year of assessment, employs
more than three full-time employees who are on a full-time basis
engaged in the business of such trust of rendering any such service, other
than any employee who is a connected person relation to such person or
such trust;” .
(2) (a) Subsection (1)(a) shall come into operation on 1 August 2000.
(b) Subsection (1)(b) shall be deemed to have come into operation on 1 July 2000.
(c) Subsection (1)(c) shall be deemed to have come into operation on 1 April 2000,
and shall apply in respect of any year of assessment commencing on or after that date.
Amendment of paragraph 2 of Fourth Schedule to Act 58 of 1962, as added by
section 19 of Act 6 of 1963 and amended by section 23 of Act 72 of 1963, section 29
of Act 55 of 1966, section 38 of Act 88 of 1971, section 48 of Act 85 of 1974, section
28 of Act 113 of 1977, section 40 of Act 90 of 1988, section 21 of Act 70 of 1989,
section 45 of Act 101 of 1990, section 45 of Act 129 of 1991, section 38 of Act 21 of
1995 and section 45 of Act 28 of 1997
53. (1) Paragraph 2 of the Fourth Schedule to the Income Tax Act, 1962, is hereby
amended by the addition to item
(a) of subparagraph (5) of the following proviso:
“Provided that the Commissioner shall not issue a certificate of exemption
if—
(au) more than 80 per cent of the gross income of such person during the year of
assessment consists of, or is likely to consist of, an amount or amounts
received from any one client of such person, or any associated institution as
defined in the Seventh Schedule to this Act in relation to such client;
(bb) such labour broker provides to any of its clients the services of any other
labour broker; or
(cc) such labour broker is contractually obliged to provide a specified employee of
such labour broker to render any service to such client.”.
(2) Subsection (1)
shall be deemed to have come into operation on 1 July 2000, and
5
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40
shall apply in respect of any application for a certificate of exemption received on or
after that date.

92 No. 21390
GOVERNMENT GAZEITE, 19 JULY 2000
Act
No. 30,2000 TAXATION LAWS AMENDMENT ACT, 2000
Amendment of paragraph 1 of Seventh Schedule to Act 58 of 1962, as added by
section 46 of Act 121 of 1984 and amended by section 26 of Act 96 of 1985,
Government Notice No. R.2706 of 29 November 1985, section 33 of Act 65 of 1986,
Government Notice No. R.2683 of 19 December 1986, section 28 of Act 85 of 1987,
Government Notice No. R.714 of 14 April 1989, section 24 of Act 70 of 1989, 5
Government Notice No. R.763 of 29 March 1990, section 55 of Act 101 of 1990,
section 35 of Act 141 of 1992, section 52 of Act 113 of 1993, section 30 of Act 21 of
1994 and section 40 of Act 36 of 1996
54. Paragraph 1 of the Seventh Schedule to the Income Tax Act, 1962, is hereby
amended by the substitution for the definition of “official rate of interest” of the 10
following definition:
“ ‘official rate of interest’ means [a] the rate of interest [of 14,5 per cent per
—
annum] fixed
by the Minister from time to time by notice in the Gaze?/e; ”.
Amendment of paragraph 9 of Seventh Schedule to Act 58 of 1962, as added by
section 46 of Act 121 van 1984 and amended by section 31 of Act 96 of 1985, section 15
34 of Act 65 of 1986, section 29 of Act 85 of 1987, section 59 of Act 101 of 1990,
section 53 of Act 113 of 1993, section 33 of Act 21 of 1994, section 49 of Act 28 of
1997 and section 55 of Act 30 of 1998
55. Paragraph 9 of the Seventh Schedule to the Income Tax Act, 1962, is hereby
amended by the substitution for item (b) of subparagraph (4) of the following item: 20
“(b) in any other case, an amount calculated [at the rate of R1OO per person per
day for each day during which the accommodation was so occupied or] at
the prevailing rate per day at which such accommodation [would] could
normally be let to any person who is not an employee of the employer or of
any associated institution in relation to the employer [whichever rate is
25
lower].”.
Substitution of paragraph 19 of Seventh Schedule to Act 58 of 1962, as substituted
by section 27 of Act 70 of 1989
56. The following paragraph is hereby substituted for paragraph 19 of the Seventh
Schedule to the Income Tax Act, 1962: 30
“19. Any person who makes or issues or causes to be made or issued or knowingly
possesses or uses or causes to be used any certificate referred to in paragraph
17( 1) which is false,
shall be guilty of an offence and liable on conviction to
a fine [not exceeding
R400] or to imprisonment for a period not exceeding
[six] twelve months [or to both such fine and such imprisonment].”. 35
Amendment of paragraph 20 of Seventh Schedule to Act 58 of 1962, as amended by
section 39 of Act 96 of 1985 and section 34 of Act 21 of 1994
57. Paragraph
20 of the Seventh Schedule to the Income Tax Act, 1962, is hereby
amended—
(a) by the deletion of item (a) of subparagraph (1); 40
(b) by the substitution for item (e) of subparagraph (1) of the following item:
“(e) the provisions of paragraph [9(3)(b)] 9(3)(uJ so as to vary the amount @
quantities specified therein;”;
(c) by the deletion of items
(/) and (g) of subparagraph (1); and
(d) by the substitution for item (i) of subparagraph (1) of the following item: 45
“(i) the provisions of paragraph lo] so as to vary the amount specified
therein; and”.

94 No. 21390 GOVERNMENT GAZETt’E, 19 JULY X300
Act No. 30,2000 TAXATION LAWS AMENOMENT ACT. 2000
Amendment of section 1 of Act 91 of 1964, as amended by section 1 of Act 95 of
1965, section 1 of Act 57 of 1966, section 1 of Act 105 of 1969, seetion 1 of Act 98 of
1970, section 1 of Act 71 of 1975, section 1 of Act 112 of 1977, section 1 of Act 110
of 1979, sections 1 and 15 of Act 98 of 1980, section 1 of Act 89 of 1984, section 1 of
Act 84 of 1987, section 1 of Act 68 of 1989, section 1 of Act 59 of 1990, section 1 of 5
Act 19 of 1994, section 57 of Act 30 of 1998 and section 46 of Act 53 of 1999
58. Section 1 of the Customs and Excise Act, 1964, is hereby arnended—
(a,) by the substitution in subsection (1) for the words preceding the definition of
“agricultural distiller” of the following words:
“In this Act,
unless the context otherwise indicates, any reference to 10
customs and excise or matters relating thereto, shall be deemed to
include a reference
to-
@ surcharge and fuel levy or matters relating thereto;
~ air passenger tax or matters relating thereto in so far as those
provisions can be applied and
subiect to the provisions of section 15
~ and-; and
(c) by the substitution for the definition of “duty” of the following definition:
“ ‘duty’ means any duty Ieviable under this Act and, subiect to the
provisions of section 47B, anypassenger tax
leviable under that
section””: ~o —$
Insertion of section 47B in Act 91 of 1964
59. (1) The following section is hereby inserted after section 47A of the Customs and
Excise Act, 1964: –
“Air passenger tax
47B. (
1 ) For the purposes of this section. unless the context otherwist
indicates—
‘agent’ means an agent contemplated in subsection
(5)(c);
‘airline’ means any air transport enterprise offering or operating ar
international air service;
‘airport’ means a customs and excise airport specified in item 200.04 of tht
Schedule to the rules;
‘carriage’ means carriage by air;
‘chargeable aircraft’ means art aircraft designed or adapted to carry any
person in addition to the flight crew;
“chargeable passenger’, subject to the provisions of subsection (3),
means
every passenger on a chargeable aircraft departing from an airport in the
Republic to a destination in a territory outside the Republic;
‘flight’, in relation to any chargeable passenger. means the carriage of such
passenger from an airport in the Republic on a chargeable aircraft to any
destination in a territory outside the Republic;
‘operator’, in relation to a chargeable aircraft, means the person having the
management of the aircraft for the time being, and includes any airline 01
any person who owns or hires such aircraft or in whose name the aircraft is
registered in terms of the regulations made under the Aviation Act, 1962
(Act No. 74 of 1962):
‘passenger’, in relation to any chargeable aircraft, means—
(u) where the operator is an air transport undertaking, any person carried
on the aircraft other
than—
(i) a member of the flight crew;
(ii) a cabin attendant; or
(iii) a person not carried for reward who is an employee of the
operator and who satisfies such other requirements as may be
prescribed by rule; and
(b) in any other case, any person carried for reward;
‘reward’, in relation to the carriage of any person, includes any form of
consideration received or to be received wholly or partly in connection with
the carriage, irrespective of the person by whom or to whom the
consideration has been given or is to be given;
25
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55

96 No. 21390 GOVERNMENT GAZETTE, 19 JULY 2000
Act No. 30.2000 TAXATION LAWS AMENDMENT ACT, 2000
‘tax’ means air passenger tax.
(2) (a) A tax known as air passenger tax shall be charged in accordance
with this section on the carriage on a chargeable aircrafi of any chargeabk
passenger.
(b) (i) The tax shall be charged at the rate of R1OO on the c&riage of eack
chargeable passenger departing on a flight: Provided that the Minister may
by notice in the Gazette lower the rate, and by like notice amend any rate sc
lowered, in respect of any flight of which the final destination is any
countrj
in Africa.
(ii) In considering the lowering or amendment of the rate, the Ministel
shall take into account—
(au) the distance between an airport in a country concerned and an airporl
in the Republic;
(bb) any agreement existing between the Republic and any of the countries
concerned;
(cc) the price of the flight ticket; and
(old) any other ground which may be regarded as reasonable in the
circumstances.
(iii) The provisions of section 48(6) shall apply nzumtis rnutandis to any
notice referred to in the proviso to subparagraph (i).
(c) The chargeable passenger shall be liable for the tax which shall be
collected by the operator or his agent.
(d) Subject to the provisions of this section and the rules, the tax—
(i) becomes due when the aircraft first takes off on the passenger’s
flight;
(ii) shall be paid—
(au) for the benefit of the National Revenue Fund;
(bb) in respect of each chargeable passenger, by the operator or
the agent;
(cc) in accordance with the rules as contemplated in subsection
(7)(b)(i).
(e) Subject to the provisions of this section and except for the purposes of
any customs union agreement concluded under section 51, the tax shall be
deemed to be a duty
Ieviable under this Act.
(3)
(a) A child who–
(i) has not attained the age of two years; and
(ii) is not allocated a separate seat before boarding the aircraft,
is not a chargeable passenger.
(b) A passenger is not a chargeable passenger if—
(i) not carried for reward—
(au)
in pursuance of any requirement imposed under any law; or
(bb) for the purposes only of inspecting matters relating to the
aircraft or the flight crew;
(ii) whether or not earned for reward, in pursuance of any international
agreement, convention or obligation, subject to the approval of the
Commissioner and such conditions as he may impose in each case;
(c) Any passenger, who is in transit through the Republic and departs
from the transit area of the airport on a flight without entering the Republic
by passing through immigration, is not a chargeable passenger.
(4)
(a) The Commissioner shall keep a register of operators.
(b) (i) The operator of a chargeable aircraft used for the carriage of
5
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15
jO

98 No. 21390GOVERNMENT GA2%TTE, 19 JULY 20@l
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT, 2000
any chargeable passenger shall be liable to be registered under th
section.
(ii) Application for registration shall be in such form and manner anc
contain such information as may be prescribed by role.
(c) Any person liable to be registered under this section ceases to be sc
liable if the Commissioner is, on good cause shown, satisfied
that—
(i) such person no longer operates any chargeable
aircrafi or
(ii) no chargeable aircraft operated by such person will be used
fol
the carriage of chargeable passengers.
(d) Any person who is not registered and who has not applied
fol
registration shall, if he becomes liable to be registered at any time, give
notice of that fact to the Commissioner and apply for registration in writing
within seven days of the time of becoming so liable.
(e) Every pilot of a chargeable aircraft shall, for the purposes of section
7(3), produce together with the report
outwards—
(i) proof of registration of the operator; or
(ii) a certificate from the Commissioner that the operator is not liable
to be registered; and
(iii) a passenger manifest in such form and containing such particu-
lars as may be prescribed by rule.
(5)
(a) An operator who-
(i) is, or is liable to be, registered; and
(ii) does not meet the requirements contemplated in paragraph
(b),
shall appoint an agent whose place of business is in the Republic as the
South African representative of the operator.
(b) A person meets the requirements of this subsection if such person—
(i) has any business establishment or other fixed establishment in the
Republic; or
(ii) is an individual and is usually resident in the Republic.
(c) The Commissioner may register any duly appointed agent of an
operator, and if so registered, the agent may act on behalf of the operator for
the purposes of this Act.
(d) The Commissioner may by rule prescribe the following:
(i) The persons who may be appointed as agent;
(ii) the manner and conditions in or on which a person is to be
appointed as agent for an operator;
(iii) the conditions on which agents are registered by the
Commis-
sioned and
(iv) any other matter which is required or permitted in terms of this
section to be prescribed by rule.
(e) (i) The Commissioner may refuse to register an agent appointed by an
operator or cancel or suspend the registration of any agent.
(ii) For the purposes of subparagraph (i), the provisions of section 60(2)
shall apply mutatis mutandis.
(f) The provisions of sections 44A, 98 and 99(1) shall apply mutatis
mutandis to an operator and his agent.
(6)
(a) No-
(i) operator who is liable to be registered; or
(ii) agent appointed by an operator,
may conduct any business contemplated in this section unless such operator
or agent has furnished such security as the Commissioner may require.
(b) The Commissioner may at any time require that the form, nature or
amount of such security be altered in such a manner as he may determine.
(7) (a) Any operator who is registered or liable to be registered and any
agent of such operator
shall—
(i) keep accounts in such form and such manner; and
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$0
$5
!0
$5
.

100 No. 21390 GOVERNMENT GAZETTE, 19 JULY 2000
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT, 2000
(ii) ree:dekS:ax accounts at such time, in such manner and for such
as may be prescribed by rule.
(b) (i) Any operator or agent of such operator shall pay any tax due
al
such time, in such manner and at such place as may be prescribed by rule.
(ii)(aa) Any tax due and not accounted for and not paid in accordance
with the provisions of this subsection, shall be paid upon demand by the
Commissioner.
(bb) If such taxis not paid within 14 days after demand for payment was
made, it shall be recoverable in terms of the provisions of this Act as if it
were a duty payable under this Act.
(iii) Interest on any outstanding tax shall be payable as provided in
section 105.
(iv) Any amounts of tax overpaid shall be refundable in the circum-
stances and on compliance with such conditions as may be prescribed by
role.
(8) (a) Any person who-
(i) is knowingly a party to the fraudulent evasion of tax or attempts
to commit such evasion or assists any other person in taking steps
with a view to such fraudulent evasion; or
(ii) in connection with tax makes a statement he knows to be false or
recklessly makes a statement that is false, or, with intent to
deceive produces or makes use of a book, account, return or other
document that is false,
shall be guilty of an offence and liable on conviction to a fine not exceeding
RI 00000 or three times the value of the tax to which the offence relates,
whichever is the greater, or to imprisonment for a period not exceeding 10
years, or to both such fine and such imprisonment, and the aircraft in respect
of which the fraudulent act took cdace or false statements were made
5
10
15
20
25
. shall be liable to forfeiture in accordance with this Act.”. 30
(2) Subsection (1) shall come into operation on 1 November 2000, and shall apply to
any carnage of a chargeable passenger on any flight which commences on or after that
date.
Amendment of section 49 of Act 91 of 1964, as substituted by section 55 of Act 53
of 1999 35
60. (1) Section 49 of the Customs and Excise Act, 1964, is hereby amended—
(u) by the substitution for the words following on subparagraph (iv) of paragraph
(a) of subsection (1) of the following words:
“such agreement or any protocol or other part or provision thereof is
enacted into law as part of this Act when published by notice in the 40
Gazette in accordance with the provisions of subsections (1) and ( 1 A) of
section 48 or subsection (5) or (5B) of this section.”;
(b) by the substitution for subparagraph (i) of paragraph (b) of subsection (1) of
the following subparagraph:
“(i) Any amendment of such agreement or any protocol or other part or 45
provision thereof, any regulations for facilitating implementation, any
agreed list of processing relating to originating status of goods, any other
matter agreed upon between governments or by any committee of, or a
body established by, the parties to such agreement or any decision or
condition imposed by such committee or body, is likewise enacted into 50
law as part of this Act when published in accordance with the provisions
of subsections (1) and (1A) of section 48 or subsection (5) or
(5Bj of this
section by notice in the Gazette as an amendment of such agreement or
protocol or part or provision, as the case may be, with effect from any
date that may be specified in such notice.”; and
55
(c) by the insertion after subsection (5A) of the following subsection:

102 No. 21390 GOVERNMENT GAZETTE, 19 JULY 2000
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT. 2000
“(5B) Notwithstanding the provisions of subsection (5), the Minister
may include in any notice published under that subsection, the full text of
any such agreement or protocol except any protocol or other part thereof,
as the case may be, published under subsection 48( 1A), and if so
included, the whole agreement or protocol, as the case may be, shall be
enacted into law as part of this Act as contemplated in subsection
Q)(!Q.”
(2) Subsection (1) shall be deemed to have come into operation on 24 November
1999.
Amendment of section 75 of Act 91 of 1964, as amended by section 13 of Act 95 of
1965, section 10 of Act 57 of 1966, section 8 of Act 85 of 1968, section 25 of Act 105
of 1969, section 8 of Act 103 of 1972, section 2 of Act 68 of 1973 section 9 of Act 71
of 1975, section 27 of Act 112 of 1977, section 28 of Act 93 of 1978, section 10 of Act
110 of 1979, section 19 of Act 86 of 1982, section 6 of Act 89 of 1984, section 11 of Act
101 of 1985, section 9 of Act 52 of 1986, section 23 of Act 84 of 1987, section 8 of Act
69 of 1988, section 13 of Act 68 of 1989, section 29 of Act 59 of 1990, section 13 of
Act 61 of 1992, section 7 of Act 98 of 1993, section 10 of Act 19 of 1994 and section
53 of Act 45 of 1995
61. (I) Section 75 of the Customs and Excise Act, 1964, is hereby amended by the
substitution for paragraph
(b) of subsection (1) of the following paragraph:
“(b) any imported goods described in Schedule No. 4 shall be admitted under
rebate of any customs duties or fuel levy applicable in respect of such goods
at the time of entry for home consumption thereof, to the extent stated in, and
subject to compliance with the provisions of, tie item of Schedule No. 4 in
which such goods are specified;”.
(2) Subsection
(1) shall be deemed to have come into operation on 1 July 1987.
Amendment of section 76 of Act 91 of 1964, as substituted by section 30 of Act 59
of 1990 and amended by section 5 of Act 105 of 1992 and section 54 of Act 45 of 1995
62. Section 76 of the Customs and Excise Act, 1964. is hereby
amended—
(a) by the deletion of the word “or” at the end of paragraph ~) of subsection (2);
(b) by the addition of the word “or” at the end of paragraph (g) of subsection (2);
and
(c) by the addition to subsection (2) of the following paragraph:
5
10
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25
30
,, ‘jh) duty having been paid. notwithstanding the-p~ovi~ons of section 49(9),
on any goods at the general rate of duty specified in respect thereof in any 35
heading or subheading in Part 1 of Schedule No. 1 and proof is produced
that the goods concerned qualify for a preferential rate of duty specified
for such heading or subheading in the said Part 1 of the said Schedule
No. 1.”.
(2) Subsection (1) shall be deemed to have come into operation on 1 January 2000. 40
Amendment of section 105 of Act 91 of 1964, as substituted by section 2 of Act 111
of 1991 and amended by section 65 of Act 45 of 1995, section 72 of Act 30 of 1998
and section 6 of Act 32 of 1999
63. Section 105 of the Customs and Excise Act, 1964, is hereby amended by the
substitution for paragraph (b) of the following paragraph: 45
“(b) the interest so payable shall be paid at [the rate of 14,5 percent per annum,
or such other] g rate which the Minister of Fhance may from time to time fix
by notice in the Gazette;”.
Amendment of Schedule No. 1 to Act 91 of 1964
64. (1) Schedule No. 1 to the Customs and Excise Act, 1964, is hereby amended as set 50
out in Schedule 2 to this Act.
(2) Subject to the provisions of section 58(1) of the Customs and Excise Act, 1964,
subsection (1) shall be deemed to have come into operation on 23 February 2000.

104 No. 21390GOVERNMENT GAZEITE, 19 JULY 2000
Act No. ~, 2000 TAXATtON LAWS AMENDMENT ACT. 2000
Continuation of certain amendments of Schedules Nos. 1 to 6 to Act 91 of 1964
65. (1) Every amendment or withdrawal of or insertion in Schedules Nos.
I to 6,
inclusive, to the Customs and Excise Act, 1964, made under section 48, 56 or 75(15) of
that Act during the calendar year ending on 31 December 1999 shall not lapse by virtue
of the provisions of section 48(6), 56(3) or 75(16) of that Act.
(2) The amendments of Part 5 of Schedule No. 1 to the Customs and Excise Act, 1964,
made under section 48 of that Act by Government Notice No. R.321 of 3 April 2000,
shall not lapse by virtue of the provisions of section 48(6) of that Act.
Substitution of long title of Act 91 of 1964, as substituted by section 42 of Act 59 of
1990
66. The long title of the Customs and Excise Act, 1964, is hereby substituted by the
following long title:
“ACT
To provide for the levying of customs and excise duties and a surcharge:
for a fuel levy and for an air passenger tax; the prohibition and control of the
importation, export, [or] manufacture or use of certain goods; and for
matters incidental thereto.”.
Amendment of section 4 of Act 77 of 1968, as amended by section 17 of Act 103 of
1969, section 5 of Act 72 of 1970, section 6 of Act 66 of 1973, section 8 of Act 88 of
1974, section 4 of Act 95 of
1978; section 7 of Act 99 of 1981, section 4 of Act 87 of
1982, section 4 of Act 118 of 1984, section 10 of Act 81 of 1985, section 18 of Act 87
of 1988, section 4 of Act 69 of 1989, section 5 of Act 136 of 1992, section 13 of Act 97
of 1993 and section 78 of Act 30 of 1998
67.
(1) Section 4 of the Stamp Duties Act, 1968, is hereby amended—
(a) by the deletion of subparagraph (iv) of paragraph (b) of subsection (1);
(b) by the substitution for subparagraph (i) of paragraph @of subsection (1) of
the following subparagraph:
“(i) a [religious, charitable or educational institution of a public
character] public benefit organisation which is exempt from tax in terms
of section [lO(l)@] 10(1 )(cN/ of the Income Tax Act, 1962 (Act 58 of
1962) [and any fund which is exempt from tax in terms of section
10(l) @A) of the said Act]; or”;
(c) by the deletion of subparagraphs (ii) and (iii) of paragraph ~) of subsection
(l); and
(d) by the substitution for the words following on subparagraph (iii) of paragraph
(j”,, of subsection (1) of the following words:
“if the duty thereon would be legally payable and borne by such
[institution, fund, company, society, trust or other association, as the
case may be] public benefit organisation;”;
(e) by the addition to subsection (1) of the following paragraph:
“~ any instrument transfemed by anypublic benefit organisation, which is
exempt from tax in terms of section 10(1
)(cN) of the Income Tax Act l 1962, to any other entity which is controlled by such public benefit
organisation in order to comply with the provisions of the proviso to
section 30(3) of that Act.”.
(2)
(a) Subsection (1)(a) shall be deemed to have come into operation on 1 January
2000.
(b) Subsection (1)(b), (c), (d) and (e) shall come into operation on a date fixed by the
President by proclamation in the Gaiette.
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Amendment of section 5 of Act 77 of 1968, as amended by section 9 of Act 89 of
1972, section 7 of Act 66 of 1973, section 9 of Act 114 of 1977, section 5 of Act 118
of 1984, section 10 of Act 86 of 1987, section 19 of Act 87 of 1988, section 6 of Act 136
of 1991, section 6 of Act 136 of 1992 and section 79 of Act 30 of 1998
68. Section 5 of the Stamp Duties Act, 1968, is hereby
amended— 5
(a) by the substitution for the words preceding the proviso to subsection (1) of the
following words:
“The payment of any duty or of any penalty incurred under section 9
shall, save as is otherwise specially provided in this Act, be denoted by
means of adhesive revenue stamps for the amount of such duty or 10
adhesive penalty stamps for the amount of such penalty [where the
amount of such duty or penalty does not exceed an amount of R400],
and such stamps shall be affixed to the instrument chargeable with the
duty or penalty and be defaced as prescribed by this Act:”; and
(b) by the deletion of subsection (1A).
15
Amendment of section 27 of Act 77 of 1968, as amended by section 28 of Act 87 of
1988
69. Section 27 of the Stamp Duties Act, 1968, is hereby amended—
(a) by the substitution for the words following on paragraph (k) of subsection (1)
of the following words: 20
“or who causes or procures any of the acts mentioned in any of
paragraphs
(a) to (k), inclusive, to be done or knowingly aids, abets or
assists any person in doing any such act, shall be guilty of an offence and
liable on conviction to a fine
[not exceeding R1O 000] or to imprison-
ment for a period not exceeding two years [or to both such fine and 25
such imprisonment].”; and
(b) by the substitution for the words following on paragraph (b) of subsection (2)
of the following words:
“shall be guilty of an
offence and liable on conviction to a fine [not
exceeding R4 000] or to imprisonment for a period not exceeding six 30
months [or to both such fine and such imprisonment].”.
Amendment of section 28A of Act 77 of 1968, as inserted by section 12 of Act 88 of
1974 and amended by section 29 of Act 87 of 1988
70. Section 28A of the Stamp Duties Act, 1968, is hereby amended by the substitution
for the words following on paragraph (c) of subsection (1) of the following words: 35
“shall be guilty of an
offence and on conviction liable to a fine [not exceeding
R4 000] or to imprisonment for a period not exceeding six months [or to both such
fine and such imprisonment].”.
Amendment of section 31C of Act 77 of 1968, as inserted by section 18 of Act 46 of
199640
71. Section 31 C of the Stamp Duties Act, 1968, is hereby amended—
(a) by the substitution for paragraph (b) of subsection (8) of the following
paragraph:
“(b) have the same powers—
fl to enforce the attendance of witnesses and to compel them to give 45
evidence or to produce evidential material;
@
@ relating to contempt committed during the proceedings,
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108 No. 21390 GOVERNMENT GAZETTE, 19 JULY2000
Act No. 30,2000 TAXATtON LAWS AMENDMENT ACT. 2000
83 of the Income Tax Act, 1962, and for those purposes sections 84 and
85 of that Act shall
apply mutatis mutandis; and”;
(b) by the substitution for subsections (11), (12) and (13) of the following
subsections:
“(11 ) Any person whose affairs are investigated in the course of an
inquiry contemplated in this section, shall be entitled to be present
[throughout] Q the inquiry during such time as his affairs are
investigated, unless on application by the person contemplated in
subsection (l), the presiding officer directs otherwise on the ground that
the presence of the person and his representative, or either of them,
would be prejudicial to the effective conduct of the inquiry.
(12) Any person contemplated in subsection (9) has the right to [a
representative of his choice] have a legal representative present during
the time that he appears before the presiding officer.
(13) An inquiry contemplated in this section shall [not be public] @
private and confidential and the presiding officer shall at any time on
application [on @ the person whose affairs are investigated or any other
person giving evidence or the person contemplated in subsection (1),
exclude from such inquiry or require to withdraw therefrom, all or any
persons whose attendance is not necessary for the inquiry.”;
(c) by the addition of the following subsections:
“(15)
Sublect to subsection (16), the evidence given under oath or
solemn declaration at an inquiry may be used by the Commissioner in
any subsequent proceedings to which the person whose affairs are
investigated is a party or to which a person who had dealings with such
person is a party.
(16) (a) No person may refuse to answer any question during an
inquiry on the grounds that it may incriminate him.
(b) No incriminating evidence so obtained shall be admissible in any
criminal proceedings against the person giving such evidence, other than
in proceedings where that person stands trial on a charge relating to the
administering or taking of an oath or the administering or making of an
affirmation or the giving of false evidence or the making of a
false
statement in connection with such questions and answers or a failure to
answer questions lawfully put to him, fully and satisfactorily.
(17) An inquiry in terms of this section shall proceed notwithstanding
the fact that any civil or criminal proceedings are pending or contem-
plated against or involving any person contemplated in subsection (6)(c)
or any witness or potential witness or any person whose affairs may be
investigated in the course of that inquiry.”.
Amendment of Item 15 of Schedule 1 to Act 77 of 1968, as substituted by section 13
of Act 89 of 1972 and amended by section 16 of Act 66 van 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 9 of
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 11 of Act 81 of 1985, section 5 of Act 71 of 1986, section
13 of Act 108 of 1986, section 11 of Act 86 of 1987, section 33 of Act 87 of 1988,
section 14 of Act 69 of 1989, section 9 of Act 136 of 1991, section 8 of Act 136 of 1992,
section 17 of Act 97 of 1993, section 17 of Act 140 of 1993, section 8 of Act 20 of 1994,
section 86 of Act 30 of 1998 and section 79 of Act 53 of 1999
72. Item 15 of Schedule 1 to the Stamp Duties Act, 1968, is hereby
amended—
(a) by the deletion of paragraph (d) under the heading “Exemptions from
the duq
under paragraph (1) or (2)”; and
(b) by the deletion of paragraph
(u) under the heading “Exemptions from the duty
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110 No. 21390GOVERNMENT GAZEITE, 19 JULY 2000
Act
No. 30,2000 TAXATION LAWS AMENDMENT ACT, 2000
Amendment of Item 18 of Schedule 1 to Act 77 of 1968, as amended by section 26
of Act 103 of 1969, section 18 of Act 66 of 1973, section 34 of Act 87 of 1988, section
84 of Act 89 of 1991 and section 18 of Act 97 of 1993
73.
Item 18 of Schedule 1 to the Stamp Duties Act, 1968, is hereby amended—
(a) by the substitution for the words preceding subitem (1) of the following
words:
“Policy of insurance, including any other instrument which constitutes a
long-term policy [of insurance] under the Long-term Insurance Act,
[1943 (Act No. 27 of 1943)] 1998 (Act No. 52 of 1998):” ;
(b) by the substitution for paragraph (2A) of the following paragraph:
“(2A) Policy of insurance against accident to a person or in respect of any bodily
injury to or arty incapacity or sickness of any person or the like, if
such insurance
is provided for in a policy which is mainly a policy of life insurance subject to duty
under paragraph (1) or (2) Q
[(a) where such policy of life insurance is a home service
policy or industrial policy as contemplated in the Insurance
AcC 1943 (Act No. 27 of 1943)020
(b) in any other case
O 50]”; and
(c) by the deletion of paragraph (6)(a).
Amendment of Item 20 of Schedule 1 to Act 77 of 1968, as amended by section 27
of Act 103 of 1969, section 19 of Act 66 of 1973, section 24 of Act 88 of 1974, section
17 of Act 92 of 1983, section 35 of Act 87 of 1988 and section 36 of Act 9 of 1989
74. Item 20 of Schedule 1 to the Stamp Duties Act, 1968, is hereby amended by the
substitution for paragraph (b) under the heading “Exemptions” of the following
paragraph:
“(b) Where such document of security or pledge or such act of suretyship,
indemnity or guarantee constitutes a
lorw -term policy [of insurance] under
the
Lontz-term Insurance Act, [1943 (Act 27 of 1943)1 1998 (Act No. 52 of
Insertion of section 24 in Act 40 of 1987
75. (1) The following section is hereby inserted after section 23 of the Eskom Act,
1987:
“Taxation of receipts and accruals of Eskom and subsidiaries
24. ( 1 ) The provisions of section 10( l)(cA,J of the Income Tax Act, 1962
(Act No.
58 of 1962), shall not apply in respect of the receipts and accruals
of—
(a) Eskom; and
(b) any South African company of which all the shares are held by Eskom.
if the operations of such company are ancillary or complementary to
the objects of Eskom referred to in section 3.
(2) The Minister of Finance shall. after consultation with the Minister
and the Minister of Minerals and Energy, determine the tax values of the
capital assets owned on
1 January 2000 by Eskom and any company
contemplated in subsection (1)(b) for the purpose of calculating any wear
and tear or depreciation allowances contemplated in the Income Tax Act,
1962.
(3) When—
(a) Eskom is incorporated as a company as contemplated in section 2A
(hereinafter refereed to as the converted company); or
(b) any asset, liability, right, obligation or any business of Eskom has been
transferred to any company (hereinafter referred to as the transferee
company),
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112 No. 21390 GOVERNMENT GAZE’ITE. 19 JULY 2000
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Eskom and the converted company or the transferee company, as the case
may be, shall, subject to such adjustments as may be necessary, for
the
purposes of the provisions of the Income Tax Act, 1962, be deemed to be
one and the same entity.
(4) No tax, duty or levy shall be payable in respect of the transfer of anv 5 asset from Eskorn to any – company-contemplated in subsection (3).”.
(2) Subsection shall be deemed to have come into operation on 1 January 2000.
Amendment of section 1 of the Act 89 of 1991, as amended by section 21 of Act 136
of 1991, paragraph 1 of Government Notice 2695 of 8 November 1991, section 12 of
Act 136 of 1992, section 22 of Act 97 of 1993, section 9 of Act 20 of 1994, section 18
of Act 37 of 1996, section 23 of Act 27 of 1997 and section 81 of Act 53 of 1999
76. Section 1 of the Value-Added Tax Act, 1991, is hereby amended by the
substitution in the definition of “motor car” for the words preceding paragraph (a) of the
following words:
“ ‘motor car’ includes a motor car, station wa~on. minibus, double cab light
delivery
vehicle and any other motor vehicle of a kind normally used on public
roads, which has three or more wheels and is constructed or adapted wholly or
mainly for the carnage of passengers, but does not include—”.
Amendment of section 11 of Act 89 of 1991, as amended by section 27 of Act 136 of
1991, paragraph 6 of Government Notice 2695 of 8 November 1991, section 17 of
Act 136 of 1992, section 27 of Act 97 of 1993, section 13 of Act 20 of 1994, section 28
of Act 27 of 1997, section 89 of Act 30 of 1998 and section 85 of Act 53 of 1999
77. Section 11 of the Value-Added Tax Act, 1991, is hereby
amended—
(a) by the addition in subsection (2) of the word “or” at the end of paragraph (q);
and
(b) by the addition to subsection (2) of the following paragraph:
“~ the services comprise of the vocational training of employees (other than
educational services contemplated in section
12(h)) for an employer who
is not a resident of the Republic and who is not a vendor.”.
Amendment of section 27 of Act 89 of 1991, as amended by section 34 of Act 136 of
1991, Government Notice 2695 of 8 November 1991 and section 28 of Act 136 of
1992
78. (1) Section 27 of the Value-Added Tax Act, 1991, is hereby amended—
(a) by the addition to subsection (1) of the following definition:
“ ‘Category E’ means the categoryof vendors whose tax periods are
periods of twelve months
ending on the last day of their ‘year of
assessment’ as defined in section 1 of the Income Tax Act or where any
vendor falling within this category makes written application therefor, on
the last day of such other month as the Commissioner may approve.”;
(b) by the substitution for paragraph (a) of subsection (2) of the following
paragraph:
“(a) Every vendor, not being a vendor who falls within Category C,
[or] D @as contemplated in subsection (3), [or] (4) or (4A), shall fall
within Category A or Category B.”;
(c) by the substitution for the proviso to subsection (3) of the following proviso:
“Provided that a vendor falling within Category C
shall cease to fall
within that Category with effect from the commencement of a future
period notified by the Commissioner, if the vendor has applied in writing
to be placed within Category A, B, [or] D or E and the Commissioner is
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I 14 No, 21390 GOVERNMENT GAZETTE, 19 JULY 2000
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT, 2000
satisfied that by reason of a change in the vendor’s circumstances he
satisfies the requirements of this section for placing within
Catego~ A,
B, [or] D
@.”;
(d) by the substitution for the proviso to subsection (4) of the following proviso:
“Provided that a vendor falling within Category D shall cease to fall 5
within that Category with effect from the commencement of a future
period notified by the Commissioner, if written application is made by
the person who made the application referred to in paragraph
(e) for the
vendor to be placed within Category A, B, [or] C or E or the
Commissioner is satisfied that
by reason of a change in circumstances 10
that vendor should be placed
wi~in Category A, B, -[or] C M.”;
(e) by the insertion after subsection (4) of the following subsection:
“(4A) A vendor shall fall within Category E
if—
(a) the vendor is a company or a trust fund;
(b) the vendor’s enterprise consists solely of one or more of the
activities
of—
(i) letting of fixed property or the renting of movable goods to; or
(ii) the administration or management of,
companies which are connected persons in relation to the vendor;
(c) the recipients of those supplies are all registered vendors and are
entitled to deductions of the full amount of tax in respect of those
supplies;
(d) tax invoices are issued once a year and payments of consideration
for these supplies, by agreement between the parties, only become
due once a year at the end of the ‘year of assessment’ as defined in
section 1 of the Income Tax Act of the vendor making the supplies;
and
(e) the vendor has made written application to the Commissioner in
such form as the Commissioner may prescribe, to be placed in
Category E,
and the Commissioner has directed that, with effect from a date which he
considers appropriate, the vendor shall fall within Category E: Provided
that a vendor falling within Category E shall cease to fall within that
Category with effect from a date notified by the Commissioner
if—
(i) written application is made by the person who made the application
referred to in paragraph (e) for the vendor to be placed in a different
Category; or
(ii) the Commissioner is satisfied that by reason of a change in
circumstances, that vendor should be placed in Category A, B, C or
D; or
(iii) the vendor’s placing in Category E results in any financial loss
[includim? any loss of interest) to the State.”; and
~) by the substitution for paragraph (ii) of the proviso to subsection (6) of the
following paragraph:
“(ii) any-tax period ending on the last day of a month, as applicable in respect 45
of the relevant Category, may, instead of ending on such last day, end g+
a fixed day approved by the Commissioner, which day shall fall within
10 days before or after such last day;”.
(2) Subsection (l)&) shall come into operation on 1 November 2000, and shall apply
in respect of any tax period commencing on or after that date. 50

116 No. 21390 GOVERNMENT GAZE’tTE. 19 JULY 2000
Act No. 30,2000 TAXATION LAWS AMENDMENT ACt’. 2000
Amendment of section 28 of Act 89 of 1991, as amended by section 29 of Act 136 of
1992
79. Section 28 of the Value-Added Tax Act, 1991, is hereby amended by the
substitution for the proviso to subsection ( 1 ) of the following proviso:
“Provided that—
(0
[ii)
—
where the last day of anyperiod within which a return shall be furnished and
payment shall be made falls on a Saturday. Sunday or a public holiday. such
return shall be furnished and such pavment shall be made not later than the last
business day falling
prior to such Saturday. Sunday or public holiday;
where payment of the full amount of the tax is effected by means of an
electronic transfer and the requirements for the transfer of the tax have been
met by the vendor. such electronic transfer shall not be effected prior to the last
business day of the month during which the said twenty-fifth day falls and the
period within which the tax is required to be paid shall be deemed to end on
the last business day of such month.”.
Amendment of section 31 of Act 89 of 1991
80. Section 31 of the Value-Added Tax Act. 1991. is hereby amended by the insertion
after subsection (5) of the following subsection:
“(5A) If it appears to the Commissioner that any person is for any reason
unable to furnish an accurate return as
contemrdated in section 28, 29 or 30,
the Commissioner may agree in writing with such person as to the amount
upon which tax shall be payable, and to the extent that an assessment is issued
upon an amount so agreed to, such assessment shall not be subiect to
objection.”.
Amendment of section 43 of Act 89 of 1991, as amended
by’ section 99 of Act 30 of
1998 and section 97 of Act 53 of 1999
81. Section 43 of the Value-Added Tax Act. 1991, is hereby amended by the
substitution for paragraph (a) of
subsection 1 of the following paragraph:
“(a) who has been convicted of any offence under this Act, or any other Act
administered by the Commissioner, or who has repeatedly failed to pay
amounts of tax due by him or to carry out other obligations imposed upon him
by this Act. or any other Act administered by the Commissioned or”.
Amendment of section 57C of Act 89 of 1991, as inserted by section 24 of Act 46 of
1996 and amended by section 48 of Act 27 of 1997
82. Section 57C of the Value-Added Tax Act. 1991, is hereby amended—
(a) by the substitution for paragraph (b) of subsection (8) of the following
paragraph:
“(b) have the same powers—
~ to enforce the attendance of witnesses and to compel them to give
evidence or to produce evidential material:
@
(@ relating to contempt committed during the proceedings.
as are vested in a President of the Special Court contemplated in section
83 of the Income Tax Act, and for those purposes section 84 and 85 of
that Act shall
apply mutatis mufandis; and”.
(b) by the substitution for subsections (11), (12) and (13) of the following
subsections:
“(11 ) Any person whose affairs are investigated in the course of an
inquiry contemplated in this section, shall be entitled to be present
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118 No. 21390 GOVERNMENT GAZEITE, 19 JULY 2000
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT. 2000
subsection (1), the presiding officer directs otherwise on the ground that
the presence of the person and his representative, or either of them,
would be prejudicial to the effective conduct of the inquiry.
(12) Any person contemplated in subsection (9) has the right to [a
representative of his choice] have a
legal representative present during 5
the time that he appears before the presiding officer.
(13) An inquiry contemplated in this section shall [not be public] &
private and confidential and the presiding officer shall at any time on
application [ofl @ the person whose affairs are investigated or any other
person giving evidence or the Person contemplated in subsection (1), 10
exclude from such inquiry or require to withdraw therefrom, all or any
persons whose attendance is not necessary for the inquiry.”;
(c) by the substitution for subsection 15) of the following subsection:
“(15) The provisions with regard to the preservation of secrecy
contained in section 6 shall mutatis mutandis apply to any person present 15
at the questioningof
any person contemplated in subsection (9).
including the person
being questioned.”:
(d) by the addition of the following subsections:
“(16) Subiect to subsection (17). the evidence given under oath or
solemn declaration at an inquiry may be used by the Commissioner in
20
any subsequent proceedings to which the person whose affairs are
investigated is a party or to which a person who had dealings with such
person is a party.
()7) (a) No person may refuse to answer any question during an
inquiry on the grounds that it may incriminate him.
25
(b) No incriminating evidence so obtained shall be admissible in any
criminal proceedings against the person giving such evidence, other than
in proceedings where that person stands trial on a charge relating to the
administering or taking of an oath or the administering or making of an
affirmation or the
giving of false evidence or the making of a false 30
statement in connection with such questions and answers or a failure to
answer questions lawfully put to him. fully and satisfactorily.
(18) An inquiry in terms of this section shall proceed notwithstanding
the fact that any civil or criminal proceedings are pending or contem-
plated against or involving any person identified in subsection
(6)(c) or
35
any witness or potential witness or any person whose affairs may be
investigated in
the course of that inquiry.”.
Special exemption in respect of goods or services supplied
by the International
Telecommunication Union
83. The supply of any goods or services by the International Telecommunication 40
Union in connection with “Africa Telecom 200 1“ shall be exempt from value-added tax
imposed in terms of section 7(1 Ma ) of the Value-Added Tax Act. 1991 (Act No. 89 of
1991).
Amendment of section 60 of Act 113 of 1993, as amended by section 20 of Act 140
of 1993, section 4 of Act 168 of 1993, section 34 of Act 20 of 1994, section 6 of Act 37 45
of 1995, section 34 of Act 37 of 1995, section 55 of Act 27 of 1997, section 105 of Act
30 of 1998 and section 107 of Act 53 of 1999
84. Section 60 of the Income Tax Act, 1993, is hereby amended by the substitution for
subparagraph (i) of paragraph (a) of subsection (5) of the following subparagraph:
“(i) not to be a dividend for the purposes of [Parts III and] Part VII of Chapter 11 50
of that Act; and”.

120 N~. ~13913 GOVERNMENT GAZETTE, 19 JULY 2000
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT, 2000
Amendment of section 1 of Act 38 of 1996
85. (1) Section 1 of the Tax on Retirement Funds Act, 1996, is hereby
amended—
(a) by the substitution for paragraph (b) of the definition of “actuarial value” of
the following paragraph:
“(b) in the case of an untaxed policyholder fund, by the insurer’s [valuator] actuary appointed iti terms of section 20 of the Long-term Insurance Act,
[1943
(Act 27 of 1943)] 1998 (Act No. 52 of 1998), in terms of the latest
valuation on the basis as required [in terms of the last-mentioned Act] for the purpose of the definition of ‘value of liabilities’ in section 29A of
the Income Tax Act, 1962, with a valuation date before the commence-
ment of the relevant tax period [and particulars of which shall be
lodged with the Financial Services Board before the end of the
relevant tax period and found acceptable by such Board];”;
(b) by the substitution for the definition of “insurer” of the following definition:
“ ‘insurer’ means any [company registered to carry on long-term
insurance business as defined in section 1 of the Insurance Act, 1943
(Act 27 of 1943)] long-term insurer as defined in section 1 of the
Long-term Insurance Act, 1998 (Act No. 52 of
1998).
(2) Subsection (1) shall be deemed to have come into operation on 1 March 2000, and
shall apply in respect of any tax period commencing on or after that date.
Amendment of section 3
Of Act 38 of 1996
86. Section 3 of the Tax on Retirement Funds Act, 1996, is hereby
amended—
(a) by the substitution for the formula of the following formula: “A= I+(R-E)Q”;
(b) by the deletion of “and” at the end of paragraph (c);
(c) by the addition of “and” at the end of paragraph (d); and
(d) by the addition of the following paragraph:
“@ ‘D’ represents the amount of an Y foreign dividends received by or
accrued to such fund during such tax period as determined in accordance
with the provisions of section 9E of the Income Tax Act, 1962 (Act No.
58 of 1962).”.
Amendment of section 6 of Act 31 of 1998, as amended by section 15 of Act 32 of
1999
87. Section 6 of the Uncertificated Securities Tax Act, 1998, is hereby amended—
(a) by the deletion of subparagraph (ii) of paragraph (a) of subsection (1); and
(b) by the deletion of subparagraph (vii) of paragraph (b) of subsection (1).
Amendment of section 16 of Act 31 of 1998
88. Section 16 of the
Uncertificated Securities Tax Act, 1998, is hereby amended—
(a) by the substitution for paragraph (b) of subsection (8) of the following
paragraph:
“(b) have the same powers—
Q to enforce the attendance of witnesses and to compel them to give
evidence or to produce evidential material; ~
(@ relating to contempt committed during the proceedings,
as are vested in a President of the Special Court contemplated in section
83 of the Income Tax Act, 1962 (Act No. 58 of 1962), and for those
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122 No. 21390 GOVERNMENT GAZEl_t?S, 19 JULY 2000
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~, ~ TAXATtON LAWS AMENDMENT ACT, 2C00
purposes sections 84 and 85 of that Act shall apply mutatis mutandis;
and”;
(b) by the substitution for subsections (1 1), (12) and (13) of the following
subsections:
“(1 1) Any person whose affairs are investigated in the course of an 5
inquiry contemplated in this section, shall be entitled to be present
[throughout] z the inquiry dunn~ such time as his affairs are
investi ~ated, unless on application by the person contemplated in
subsection (1), the presiding officer directs otherwise on the ground that
the presence of the person and his representative, or either of them, 10
would be prejudicial to the effective conduct of the inquiry.
(12) Any person contemplated in subsection (9) has the right to [a
representative of his choice] have a
legal representative present during
the time that he appears before the presiding officer.
(13) An inquiry contemplated in this section shall [not be public] ~ 15
private and confidential and the presiding officer shall at any time on
application [ofl Q the person whose affairs are investigated or any other
person giving evidence or theperson contemplated in subsection (1),
exclude from such inquiry or require to withdraw therefrom, all or any
persons whose attendance is not necessary for the inquiry.”;
20
(c) by the addition of the following subsections:
“(1 5) Subject to subsection (16), the evidence given under oath or
solemn declaration at an inquiry may be used by the Commissioner in
any subsequent proceedings to which the person whose
tiairs are
investigated is a party or to which a person who had dealings with such
25
person is a party.
(16)
(a) No person may refuse to answer any question during an
inquiry on the grounds that it may incriminate him.
(b) No incriminating evidence so obtained shall be admissible in any
criminal proceedings against the person giving such evidence, other than 30
in proceedings where that person stands trial on a charge relating to the
administering or taking of an oath or the administering or making of an
affirmation or the giving of false evidence or the making of a false
statement in connection with such questions and answers or a failure to
answer questions lawfully put to him,
fully and satisfactorily. 35
(17) An inquiry in terms of this section shall proceed notwithstanding
the fact that any civil or criminal proceedings are pending or contem-
plated against or involving any person contemplated in subsection (6)(c)
or any witness or potential witness or any person whose affairs may be
investigated in the course of that inquiry.”.
40
Insertion of section 7A in Act 50 of 1998
89. The following section is hereby inserted after section 7 of the Demutualisation
Levy Act, 1998:
“Exemption from income tax
7A. There shall be exempt from income tax the receipts and accruals of 45
the
Umsobomvu Fund.”.
Amendment of section 3 of Act 126 of 1998
90. (1) Section 3 of the Eskom Amendment Act, 1998, is hereby
amended—
(a) by the substitution for subsection (1) of the following subsection:
“(1 ) [Subject to subsections (2) and (3)] Section 24 of the principal 50
Act is hereby repealed.”; and
(b) by the deletion of subsections (2) and (3).
(2) Subsection (1)
shall be deemed to have come into operation on 1 January 2000.

124 No. 21390 GOVERNMENT GAZETTE, 19 JULY 2000
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT, 2000
Amendment of section 4 of Act 9 of 1999, as amended by section 112 of Act 53 of
1999
91. Section 4 of the Skills Development Levies Act, 1999, is hereby amended by the
substitution for paragraph (c) of the following paragraph:
“(c) any [religious or charitable institution] public benefit organisation contem- 5
plated in section [10(1)(/)] 10(1 )(cN) of the Income Tax Act, [or any fund
contemplated in section 10(l)&A) of the Income Tax Acb established
solely to provide funds to any such institution] which solely carries on any
religious or charitable public benefit activity determined by the Minister of
Finance in terms of section 30 of that Act or
any public benefit organisation 10
which provides funds solely to such public benefit organisation which so
carries on such public benefit activity; or”.
Amendment of section 5 of Act 9 of 1999
92. (1) Section 5 of the Skills Development Levies Act, 1999, is hereby amended by
the substitution for subsection (6) of the following subsection:
15
“(6) Any employer that is exempt from the payment of the levy as contemplated
in section 4(a), (c), [and] (d) and (e), must register in terms of subsection (1).”.
(2) Subsection (1) shall be deemed to have come into operation on 24 November
1999.
Amendment of section 13 of Act 9 of 1999 20
93. (1) Section 13 of the Skills Development Levies Act, 1999, is hereby amended by
the substitution for paragraph (g) of the following paragraph:
“(g) representative taxpayers [as contained in the Fourth Schedule to the
Income Tax Act];”.
(2) Subsection (1) shall be deemed to have come into operation on 1 September 1999. 25
Short title and commencement
94. (1) This Act shall be called the Taxation Laws Amendment Act, 2000.
(2) Save in so far as is otherwise provided in this Act or the context otherwise
indicates, the amendments effected to the Income Tax Act, 1962, by this Act shall for the
pu~oses of assessments in respect of normal tax under the Income Tax Act, 1962, be 30
deemed to have come into operation as from the commencement of years of assessment
ending on or after 1 January 2001.

126 No. 21390 GOVERNMENT GAZETTE, 19 JULY 2000
Aet No. 30,2000 TAXATION LAWS AMENDMENT ACT, 2000
Schedule 1
RATES OF NORMAL TAX PAYABLE BY PERSONS (OTHER THAN COMPA-
NIES) IN RESPECT OF THE YEARS OF ASSESSMENT ENDING 28 FEBRU-
ARY 2001 AND 30 JUNE 2001, AND BY COMPANIES IN RESPECT OF YEARS
OF ASSESSMENT ENDING DURING THE PERIOD OF 12 MONTHS ENDING
31 MARCH 2001
(Section 12)
1. The rates of normal tax referred to in section 12 of this Act in respect of persons
(other than companies) are as follows:
(a) In respect of the taxable income of any person (other than a company or a
person in respect of which subparagraph
(b) applies), an amount of tax
calculated in accordance with the table below:
Taxable IncomeRates of Tax
Where the taxable
income—
does not exceed R35 000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 per cent of each R1 of the taxable income;
exceeds R35 000 but does not exceed R45 000 R6 300 plus 26 percent of the amount by which
the taxable income exceeds R35 000; ,! R45 000 “ “ ““ R60 000 R8 900 plus 32 per cent of the amount by which
the taxable income exceeds R45 000; ,, R60 000 “ “ ““ R70 000 R 13700 plus 37 per cent of the amount bywhich the taxable income exceeds R60 000; ,, R70 000 “ “ ““ R200 000 R 17 400 plus 40 per cent of the amount by
which the taxable income exceeds R70 000; ,, R200 000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . R69 400 plus 42 per cent of the amount by which the taxable income exceeds R200 000.
(b) in respect of the taxable income of any trust (other than a special trust), an
amount of tax calculated in accordance with the table
below:
Taxable Income Rates of Tax
Where the taxable
income—
does not exceed RI(K) 000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 per cent of each R 1 of the taxable income;
exceeds R1OO 000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . R32 000 plus 42 per cent of the amount bywhich the taxable income exceeds R 100000.
2. The rates of normal tax referred to in section 12 of this Act in respect of companies
are, subject to the provisions of paragraph 4, as follows:
(a) On each rand of the taxable income of any company (excluding taxable
income referred to in subparagraphs (b), (c), (d), (e), (f), (g) and (h)), 30 cents>
or, in the case of a company which mines for gold on any gold mine and which
is in terms of an option exercised by it exempt from the payment of secondary
tax on companies, 38 cents;
(b) in respect of the taxable income of any company which qualifies as a small
business corporation, on each rand of the taxable income as does not exceed
RI 00000, 15 cents, and on each rand of the taxable income of such company
as exceeds R 100000, 30 cents;

] 28 No. 21390GOVERNMENT GAZETTE, 19 JULY 2000
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT, 2000
(c)
(d)
(e)
09
(g)
(h)
on each rand of the taxable income of any employment company, 35 cents;
on each rand of the taxable income derived try any company from mining for
gold on any gold mine (with the exclusion of so much of the taxable income
as the Commissioner determines to be attributable to the inclusion in the gross
income of any amount referred to in paragraph O) of the definition of “gross
income” in section 1 of the Income Tax Act, 1962, but after the set-off of any
assessed loss in terms of section 20(1) of the Income Tax Act, 1962), a
percentage determined in accordance with the formula:
y=37—~
or, in the case of a company which is in terms of an option exercised by it
exempt from the payment of secondary tax on companies, in accordance with
the forrmda:
y=46—~ x
in which formulae y represents such percentage and x the ratio expressed as a
percentage which the taxable income so derived (with the said exclusion, but
before the set-off of any assessed loss or deduction which is not attributable to
the mining for gold from the said mine) bears to the income so derived (with
the said exclusion);
on each rand of the taxable income of any company, the sole or principal
business of which in the Republic is, or has been, mining for gold and the
determination of the taxable income of which for the period assessed does not
result in an assessed loss, which the Commissioner determines to be
attributable to the inclusion in its gross income of any amount refereed to in
paragraph
(j) of the definition of “gross income” in section 1 of the Income
Tax Act, 1962, a rate equal to the average rate of normal tax or 30 cents,
whichever is higher: Provided that for the purposes of this subparagraph, the
average rate of normal tax shall be determined by dividing the total normal tax
(excluding the tax determined in accordance with this subparagraph for the
period assessed) paid by the company in respect of its aggregate taxable
income from gold mining for the period from 1 July 1916 to the end of the
period assessed, by the number of
rands contained in the said aggregate
taxable income;
on each rand of the taxable income derived by any company from carrying on
long-term insurance business in respect of its individual policyholder fund,
company policyholder fund and corporate fund, 30 cents;
on each rand of the taxable income (excluding taxable income referred to in
subparagraphs (b), (c), (d), (e), (L) and (h)) derived by a company which has its
place of effective management outside the Republic and which carries on a
trade through a branch or agency within the Republic, 35 cents;
on each rand of the taxable income derived by a
aualifvintz comvanv as s.- contemplated in section 37H of the Income Tax Act, 1962, subjec~ to – the
provisions of the said section, zero cents:
Provided that the tax determined in accordance with any of subparagraphs (a) to (h),
inclusive, shall be payable in addition to the tax determined in accordance with any other
of the said subparagraphs.
3. That the rates set forth in paragraphs 1 and 2 shall be the rates required to be fixed
by Parliament in accordance with the provisions of section 5(2) of the Income Tax Act,
1962.
4. For the purposes of—
(a) paragraph 1, a “special trust” means a trust created solely for the benefit of a
person who suffers
from—

130 No. 21390 GOVERNMENT GAZETTE, 19 JULY 2000
Act No. 30,2000 TAXATtON LAWS AMENDMENT ACT, 2000
(i) any “mental illness”as defined in section 1 of the Mental Health Act,
1973 (Act No. 18 of 1973); or
(ii) any serious physical disability,
where such illness or disability incapacitates such person from earning
sufficient income for the maintenance of such person: Provided that where the
person for whose benefit the trust was so created dies before or on 28 February
2001, such trust shall be deemed not to be a special trust for the purposes of
paragraph 1;
(b) paragraph 2(b) and (c)-
(i) “small business corporation”means any close corporation or any
company incorporated as a private company in terms of the Companies
Act, 1973 (Act No. 61 of 1973), the entire shareholding of which is at all
times during the year of assessment held by shareholders or members
that are natural persons,
where—
(aa) the gross income of the close corporation or company for the year of
assessment does not exceed R1 million;
(bb) none of the shareholders or members at any time during the year of
assessment of the company or close corporation holds any shares or
has any interest in the equity of any other company as defined in
section 1 of the Income Tax Act, 1962 (other than a company listed
on a stock exchange as defined in the Stock Exchanges Control Act,
1985 (Act No. 1 of 1985), or any unit portfolio contemplated in
paragraph (e) of the definition of “company” in section 1 of the said
Act); and
(cc) not more than 20 per cent of the gross income of the company or
close corporation consists collectively of investment income and
income from the rendering of a personal service;
(old) such company is not an employment company;
(ii) “personal service” means any service in the field of accounting, actuarial
science, architecture, auctioneering, auditing, broadcasting, broking,
commercial arts, consulting, draftsmanship, education, engineering,
entertainment, health, information technology, journalism, law, manage-
ment, performing arts, real estate, research, secretarial services, sport,
surveying, translation, valuation or veterinary science, which is per-
formed personally by any person who holds an interest in the company or
close corporation referred to in the definition of “small business
corporation”;
(iii) “investment income” means any investment income as defined in
section
9C of the Income Tax Act, 1962, and includes—
(aa) dividends; and
(bb) any proceeds derived from investment or trading in financial
instruments (including futures, options and other derivatives),
marketable securities or immovable property;
(iv) “employment company” means any company—
(aa) which is a labour broker as defined in the Fourth Schedule to the
said Act, other than a labour broker in respect of which a certificate
of exemption has been issued in terms of paragraph 2(5) of the said
Schedule; or
(bb) which is a personal service company as defined in the Fourth
Schedule
to the said Act; and
(c) paragraph 2(dJ and(e), income derived from mining for gold shall include any
income derived from silver, osmiridium, uranium, pyrites or other minerals
which may be won in the course of mining for gold, and any other income
which results
dkectly from mining for gold.
5. In this Schedule, unless the context otherwise indicates, any word or expression to
which a meaning has been assigned in the Income Tax Act, 1962, bears the meaning
so
assigned.

132 No. 21390 GOVERNMENT GAZETfE, 19 JULY 2000
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT. 2000
Schedule 2
AMENDMENT OF SCHEDULE NO. 1 TO THE CUSTOMS AND
EXCISE ACT, 1964
(Section 64)
TariffTariffDescription Rate of duty item heading
ExciseCustoms
,04.00
By the substitution for tariff item 104.00 of the
following:
‘104.00 PREPARED FOODSTUFFS; BEVERAGES, SPIR-
ITS AND VINEGAR; TOBACCO
104.01 19.01 MALT EXTRACT, FOOD PREPARATIONS OF
FLOUR, MEAL, STARCH OR MALT EXTRACT,
NOT CONTAINING COCOA POWDER OR CON-
TAINING COCOA POWDER IN A PROPORTION.
BY MASS, OF LESS THAN 50 PER CENT. NOT
ELSEWHERE SPECIFIED OR INCLUDED: FOOD
PREPARATIONS OF GOODS OF HEADINGSNOS. 04.01 TO 04.04, NOT CONTAINING COCOAPOWDER OR CONTAINING COCOA POWDER
IN A PROPORTION, BY MASS, OF LESS THAN
10 PER CENT, NOT ELSEWHERE SPECLFIED OR
INCLUDED:
10 Preparations, based on sorghum flour, put up for 33clkg 33c/kg
making beverages
04.05 Qol WATERS, INCLUDING NATURAL OR ARTIFI-
CIAL MINERAL WATERS AND AERATED WA-
TERS, NOT CONTAINING ADDED SUGAR OR
OTHERSWEETENING MATTERNOR
FLAVOURED: ICE AND SNOW
~~.oz WATERS, INCLUDING MINERAL WATERS AND
AERATED WATERS, CONTAINING ADDED
SUGAR OR OTHER SWEETENING MATTER OR
FLAVOURED, AND OTHER NON-ALCOHOLIC
BEVERAGES (EXCLUDING FRUIT OR VEG-ETABLE JUICES OF HEADING NO. 20,09):
10 Mineral waters, including spa waters and aerated 8c/1 8c/1
waters, put up in closed bottles or other close d
containers ready for drinking without dilution (ex-
cluding beverages packed in plastic tubes or
similar
containers and which are no~ally consumed in a frozen state)
~f) Lemonade and flavoured mineral waters. includin g 8cII 8c/1
flavoured spa and aerated waters. put up in close d
bottles or other closed containers ready for drinkin g without dilution (excluding beverages packed i n
plastic tubes or similar containers and which are
normally consumed in a frozen state)
30 Non-alcoholic beverages not elsewhere specified o r 8cfl 8c/1
included in this tariff item, put up in closed bottles or
other closed containers ready for drinking withou t dilution (excluding beverages packed in plastic tube s
or similar containers and which are normally con – sumed in a frozen state)
04.10 22.03 BEER MADE FROM MALT ‘2 ~39c./l 2 ~39cfl
of abso
– of abso-
lute alto
– lute alco-
hol hol

134 No, 21390 GOVERNMENT GAZETTE, 19 JULY 2000
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT, 2000
[04.15 ‘22,)4 WINE OF FRESH GRAPES, INCLUDING FORTI-
FIED WINES; GRAPE MUST, OTHER THANTHAT OF HEADING NO. 20.09
~~,05 VERMOUTHS AND OTHER WINE OF FRESH
GRAPES
FLAVOURED WITH PLANTS OR ARO- MATIC SUBSTANCES
22.06 OTHER FERMENTED BEVERAGES (FOR EX-
AMPLE. CIDER. PERRY AND
MEAD):
05
Sorghum beer (excluding beer made from prepara- 745CI 745CI
tions based on sorghum flour) 1001 I 001
10
Unfortified still wine 6 790c/ 6790cJ
1001 Iool
40 Fortified still wine 15 360c/
15 360c/ 1001 1001
50 Other still fermented beverages, unfortified11 398c/ 11 398c/ 1001 1001
60 Other still fermented beverages. fortified 202 13CI’20 213CI 1001 1001
70 Sparkling wine 18811c/ 18811cl 10011001
30 Other fermented beverages (excluding sorghum beer) 24041ct24041 c1 1001 100 I
~.~f) ~~J37 UNDENATURED ETHYL ALCOHOL OF AN AL-
COHOLIC STRENGTH BY VOLUME OF 80 PER
CENT VOLUME OR HIGHER; ETHYL ALCOHOL
AND OTHER SPIRITS, DENATURED, OF ANY
STRENGTH
~~,f)8 UNDENATURED ETHYL ALCOHOL OF AN AL-COHOLIC STRENGTH BY VOLUME OF LESS
THAN 80 PER CENT VOLUME; SPIRfTS. L1-
QUEURS AND OTHER SPIRITUOUS BEVER- AGES:
10 Wine spirits, manufactured in the Republic by the 303 365cI – distillation of wine 1001 of
absolute
alcohol
15 Spirits. manufactured in the Republic by the distilla-303 365c/ –
tion of any sugar cane product 1001 of
absolute
alcohol
25 Spirits. manufactured in the Republic by the distilla-303 365c/ –
tion of any grain product 100i of
absolute
alcohol
?9 Other spirits. manufactured in the Republic303 365c/
I 001 of
absolute
alcohol
50 Imported spirits of any nature, including spirits in 293 752c/
imported spirituous beverages (excluding liqueurs. 1001 of
cordials and similar spirituous beverages containing absolute
added sugar) and in compound alcoholic preparationsalcohol
of an alcoholic strength exceeding 1,713 per cent or
alcohol by volume
126313c/1001
70 Spirits of any nature in imported liqueurs, cordials 293 752CI
and similar spirituous beverages containing added 1001 of SU:U, with or without ffavouring substances absolute
alcohol.
04.30 ~~ 24.02 CIGARS, CHEROOTS, CIGARILLOS AND CIGA-
RETTES, OF TOBACCO OR OF TOBACCO SUB-
STITUTES

136 No. 21390GOVERNMENT GAZEITE, 19 JULY 2000
Act No. 30,2000 TAXATION LAWS AMENDMENT ACT, 20MJ
.10 I I Cigars 156 989c/ 156989c/
kg net kg net
.20 Cigarettes 141,5CI1O 141,5c/lo
cigarettescigarettes
104,35 24.03 OTHER MANUFACTURED TOBACCO AND
MANUFACTURED TOBACCO SUBSTITUTES,
‘HOMOGENISED’ OR ‘RECONSTITUTED’ TO-
BACCO EXTRACTS AND ESSENCES:
.10 Cigarette tobacco 6412cI 6412c/
I I j kg kg
.20 Pipe tobacco I 3 893c/ 13 893cI
I I kg net kg net”.