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Income Tax Act, 1962 (Act 58 of 1962)

Chapter II: The Taxes

Part IV : Turnover tax payable by micro businesses

48C. Transitional Provisions

 

(1) Where an amount—
(a) was received by a person during a year of assessment when it was a registered micro business;
(b) was included in that person’s taxable turnover for that year of assessment; and
(c) accrues to that person when it is no longer a registered micro business, that amount must not be taken into account as a receipt or accrual for purposes of determining the taxable income of that person.

 

(2) Where an amount—
(a) accrued to a person when it was a registered micro business;
(b) would have been included in that person’s taxable turnover had it been received on the date that it accrued; and
(c) is received by that person when it is no longer a registered micro business,

ten per cent of that amount must be included in the taxable income of that person for the year of assessment in which it is received.

[Words following subsection (2)(c) substituted by section 67 of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015)]

 

(3) Where a registered micro business is deregistered, any trading stock held and not disposed of by it as at the date with effect from which it is deregistered shall, for purposes of the application of section 22, be deemed to have been trading stock held and not disposed of by it at the beginning of the year of assessment within which that date falls.