| (1) |
Where a person (hereinafter referred to as "the seller") during a year of assessment disposes of equity shares to any other person (hereinafter referred to as "the purchaser") in the circumstances contemplated in subsection (2), any quantified or quantifiable amount payable by the purchaser to the seller must— |
| (a) |
to the extent that it is not due and payable to the seller during that year, be deemed for purposes of this Act— |
| (i) |
not to have been accrued to the seller in that year; and |
| (ii) |
not to have been incurred by the purchaser during that year; and |
| (b) |
to the extent that it becomes due and payable to the seller in any subsequent year of assessment, be deemed for purposes of this Act— |
| (i) |
to have been accrued to the seller during that subsequent year; and |
| (ii) |
to have been incurred by the purchaser during that subsequent year. |
| (2) |
Subsection (1) applies in respect of the disposal by a seller to a purchaser of any equity shares in a company where— |
| (a) |
more than 25 per cent of the amount payable for those shares becomes due and payable by the purchaser after the end of the year of assessment of the seller and the amount payable is based on the future profits of that company; |
| (b) |
the value of the equity shares in that company which have in aggregate been disposed of during that year and in respect of which the provisions of this section apply, exceeds 25 per cent of the total value of equity shares in that company; |
| (c) |
the purchaser and seller are not connected persons in relation to each other after that disposal; |
| (d) |
the purchaser is obliged to return the equity shares to the seller in the event of failure by the purchaser to pay any amount when due; and |
| (e) |
the amount is not payable by the purchaser to the seller in terms of a financial instrument which is payable on demand and which is readily tradeable in the open market. |
[Section 24N inserted by section 26(1) of the Revenue Laws Amendment Act, 2004 (Act No. 32 of 2004]
Stamp Duties Act, 1968 (Act 77 of 1968)
