Taxation Laws Amendment Act

1. Section 2 of the Transfer Duty Act, 1949, is hereby amended by the deletion of subsecti~n .(7). Amendment of section 9 of Act 40 ofl949, as amended by section 3 of Act 31 ofl953, · section 12 of Act 80 of 1959, section 3 of Act 70 of 1963, section 3 of Act 77ofl964, 10 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 1981, . section 2 of Act 118 of 1984, section 3 of Act81 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; 15 section 79 of Act89of1991, section6 of Act 120of1992, section 4 of Act 136of1992 and section 5 ofAct 97 of 1993

2. Section 9 of the Transfer Duty Act, 1949, is hereby amended- ( a) by the substitution in subsection (1) for the words preceding the proviso to paragraph (c) of the following words: 20 4 No. 16546 Act No. 37;'1995 GOVERNMENT GAZETIE, 19 JULY 1995 TAXATION LAWS AMENDMENT ACf, 1995 . "a religious, charitable . or educational institution · of a • public :character which is exempt from tax in terms of section 10(1) (f) of the ·Income Tax Act, 1962 (Act No. 58 of 1962), in respect of property _ acquired for religious, charitable or educational purposes exclu- . sively"; and . · ·.' (b) by the substitution for paragraphs (a) arid (b) of subsection (12B) ofthe .. .. . -. . . ~ :- · · following paragraphs, respectively: 5 "(a) any property consisting of land and any dwelling-house thereon or of a residential apartment and an undivided share . · iri coinrrioii ·property held under ·a sectional ·title deed 10 contemplated in the Sectional Titles Act, 1986, if the value of such property, determined in accordance with the provisions of sections 5 (excluding the provisions of section 5(11)), 6, 7 and 8, does not exceed R60 000; or (b) any unimproved land acquired for the purpose of erecting a 15 dwelling-house thereon; if the value of such land, determined in accordance with the provisions of sections 5 (excluding the provisions of section 5(11)), 6, 7 and 8, does not exceed R24 000.". Amendment of section 11 of Act 45 of 1955, as amended by section 3 of Act 56 of 20 1966 and section 13 of Act 87 of 1988 · . : , . . , .

3. Section 1l of. the Estate Duty Act, 1955, is . hereby amended by the substitution for- subparagraphs. (ii) and (iii) of paragraph . (b) .• of. the following subparagraphs, respectively: . . . . . . "(ii) as to any property referr~d to in paragraph (b) [or, (cB)] of that 25 , :subsection, the donee; .. (iii). ·as to any property referred to in paragraph (cA) or (d) of that subse_ction, . . the executor.". Substitution of section 15 of Act 109 of 1985, as substituted by section 9 of Act 78 of1986 30

4. The following section is hereby substituted for section 15 of the Regional Services Councils Act, 1985: · "Furnishing of information . ~ . ' ' .

15. Notwithstanding the provisions of section 4 of the Income Tax Act, 1962 (Act No. 58 of 1%2), and section [4 of the Sales Tax Act, 35 1978 (ACt No. 103 of 1978)] 6 of the Value-Added Tax Act, 1991 (Act · No. 89 of 1991), the Commissioner for Inland Revenue or any person designated byhim, may furnish to a council such information as in the opinion of the said Commissioner or ·person is necessary for the determination and collection of any regional services levy or regional 40 establi~hrnent levy.". · Substitution of section 21 of Act 84 of 1990

5. The.follo~ing section is hereby substituted for section 21 ofthe KwaZuluand Natal Joint Services Act, 1990: . . · · · · · . • · . : , "Furitishing of inf~rm~ticin f ~ • • - • ' : ~ 45

21. Notwithstanding the provisions of section 4 of the Income Tax Act, 1962 (Act No. 58 of 1962), and section [4 of the Sales Tax Act, -1978 (Act No. 103_ of 1978)] 6 of the Value-Added Tax Act, 1991 (Act No. 89 of 1991); the Commissioner for Inland Revenue of the Republic or any person designated by him, ritay furnish to a board 50 . such information as in the opinion of the said Commissioner or person .- is , ~ecessary ·,for the determination· an~ · collection of any ·regional · serviceslevyor r~gio~al establishment ~evy~"· t · ,· · . , . . 6 No. 16546 Act No. 37, 1995 GOVERNMENTGAZETIE,19JULY 1995 TAXATION LAWS AMENDMENT ACf, 1995. 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 and section 34 of Act 20 of 1994 6. ··section 60 of: the Income Tax· Act, 1993, is hereby amended by the substitution for the expression "4 November 1994", wherever it occurs, of the expression"19 June 1995". 5 Amendment of section 39 of Act 20 of 1994 · ' '7. Section 39 of the · Taxation . Laws Amendment Act,· 1994, is hereby amended- :: , r ( a) by the substitution in paragraph (a) of the definition of "controlling company" in subsection (1) for the expression "4November 1994" of 10 the expression "19 June 1995"; (b)· by the addition to the definiton of "controlling companf' in subsection (1) of the following proviso: · · ": Provided that for the purposes of a scheme contemplated in paragraph ( a)(iii) of the definition of 'rationalisation scheme' in this 15 . subsection, the company may also be a company other than a listed company;"; (c) by the insertion after the definition of ~·controlling company" in subsection (1) of the following definition: .. " 'former state' means the former Republic of Transkei, Bophu· 20 thatswana, Venda or Ciskei;"; · (d) by the substitution in the words preceding paragraph (a) of the definition ··'··of. "rationalisation· scheme" jn subsection '(1) for: the expression "4 November 1994" of the expression "19 June 1995"; (e) by the addition to paragraph (a) of the definition of "rationalisation 25 scheme'' in subsection (1) of.the following subparagraph: " iii rou in the to enable an com an in uestion which is incorporated under a law of a former state, to dispose of the whole or a part of its· business undertaking to any other company in the group in question which is incorporated under 30 · a law of the Republic as it existed prior to the commencement of the Constitution; or"; . · ·.by the substitution for the definitions· of "stamp duty" and "transfer duty" in subsection (1) of the following definitions, respectively: · " 'stamp duty' means the stamp duty leviable under Item 15(3) of 35 . Schedule 1 to the Stamp Duties Act in respect of the registration of 'transfer of any marketable security or the stamp duty leviable under Item 7(3), (4) or (5) of the said Schedule in respect of the cession of a mortgage bond or the substitution of a debtor in respect of such bond and includes any similar duty leviable in terms of a law of a 40 former state; 'transfer duty'. means the duty leviable under the Transfer Duty Act and includes any similar duty leviable in terms of a law of a former state;"; (g) by the substitution for paragraph (a) of subsection (2) of the following 45 paragraph: ."(a) such disposal, transfer, cession or substitution of any market able security, property or bond, as the case may be, where it gave rise to the distribution of a dividend, such dividend shall . be deemed not to be a dividend for the purposes of- .ill Parts III and VII of Chapter II of the Income Tax Act; or 50 . '·. ' ., :, 8 No. 16546 Act No. 37, 1995 GOVERNMENT GAZETfE, 19 JULY 1995 TAXATION LAWS AMENDMENT ACf, 1995 · (ii) the provisions of a law of a former state imposing a tax similar to the tax imposed in terms of the provisions of the Parts referred to in subparagraph (i);"; (h) by the substitution in the words preceding paragraph (a) of subsection the expression (6) . "19 June 1995"; the . expression "4 November 1994" of for 5 (i) by the substitution for paragraph (d) of subsection (6) of the following paragraph: "(d) where any sale or disposal of any trading stock, asset or business undertaking or part thereof contemplated in para- 10 graph (a), (b) or (c) gives rise to the distribution of a dividend; such distribution shall be deemed not to be a dividend for the . purposes of-'- ill Parts III and VII of Chapter II of the Income Tax Act; or (ii) the provisions of a law of a former state imposing a tax 15 . similar to the tax imposed in terms of the provisions of the Parts referred to in subparagraph (i)."; and . , (j) by the insertion of the following subsection after subsection (7): · " 7 A In the case of a rationalisation scheme devised solei or mainly to enable a company incorporated under a law of a former 20 state, to dispose of the whole or a part of its business undertaking to any other company in the same group which is incorporated under ·a law of the Republic as it existed prior to the commencement of the .Constitution, subsections (2) and (6) shall apply only in relation to transactions entered into .to give effect to, the objective of the 25 .scheme.". . ~. ' .. ::;:.'. Amendment of Part 2 of Schedule 2 to Act 20 of 1994 · ' • j j ; ,I,. ' ··.·····.· ·. 8 •. (1) Schedule 2 to the Taxation Laws Amendment Act, 1994, is hereby amended by the substitution for Part 2 of the following Part: "Part 2 . 30 •• ,i - LAWS REPEALED (section 41(6)) Number and year .. ,; of law.: · 'riec~ee No. 16 ~f 1991. Decree No. 15 of '1992 Decree No. 2 of 1994 Short title . v; · Extent, of repeal J)ecree No. 16 (Value-Added Tax) of 1991 Sections 1 to 78 35 Decree No.' 15 [Validation 'or D~cree No. 16 (V~lue~Added Tax) of 1991] ' Decree No. 2 [Further Amendment of Decree No .. 16 (Value-Added Tax) of 1991] of 1994 · The. whole The whole [except sec- tionS 79 to 84] 40 Numberand year · of law · Sh~rt title .' . Extent of repeal . . ... Act No. 25 of 1991 Value-Added Tax Act, 1991 . The whole, except sec- ·Act No. 34 of 1992 · Taxation Laws Amendment Act, 1992 ·Act No. 34 of 1993 Value-Added Tax Amendment Act, 1993 ;_,. tions 79 to 84 Sections 21 to 52 The whole 45 10 No.16546 GOVERNMENT GAZETTE, 19 JULY 1995 Act No. 37, 1995 TAXATIONLAWSAMENDMENT ACf, 1995 Number and year .. of law ' . ·.· Proclamation No.· 32 of 1991 ' .. Proclamation No. 10 of 1992 • Proclamation r-i(): · 03 of 1993 Proclamation No. o8 of 1993 ,. ' Laws of the former Republic of Venda . . · - Short title . ., Extent of repeal Value-Added Tax Proclamation, 1991 . Value~Added Tax Amendment Proclamation, · 1992 Value-Added Ta,x Amendment Proclamation, . ' 1993 Value-Added Tax Second Amendment Procla- mation, 1993 .. Laws of the former Republic of Ciskei . The whole, except sec- tion 85 of • Annexure A' thereto The whole The whole The whole Number and year . ·, ,of law ·. . Short title . Decree No. 17 of 1991 Decree No. 19 of . 1992· Decree No. 25 of 1992 Decree No. 8 of 1994 Value-Added Tax Decree, 1991 Value-Added Tax Amendment Decree, 1992 Value~ Added Tax Second Amendment Decree, The whole 1992 Value-Added Tax Ame~dment Decree,l994 The whole Extent of repeal The whole, except sec tion 78 · ~. Th'e whole (2) Subsection (1) shall be deemed to have come into operation on

25 November 1994. Short title . . .

9. This Act shall be called the Taxation Laws Amendment Act, 1995. 5 10 15 20 25