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Income Tax Act, 1962 (Act No. 58 of 1962)


Sixth Schedule : Determination of Turnover Tax payable by Micro Businesses

Part VI : Miscellaneous

13. Amounts received by a connected person may be included in qualifying turnover


The total amount received from carrying on business activities by a connected person in relation to a person described in paragraph 2(1)(a) or (b) must be included in the qualifying turnover of that person for purposes of applying paragraph 2, where—

[Words preceding paragraph 13(a) of the Sixth Schedule substituted by section 92 of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015)]

(a) the connected person carries on business activities that should properly be regarded as forming part of the business activities carried on by that person; and
(b) the main reason or one of the main reasons for the connected person carrying on business activities in the way that the connected person does is to ensure that the qualifying turnover of that person does not exceed the amount as described in that paragraph.