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Income Tax Act, 1962 (Act 58 of 1962)

Chapter II: The Taxes

Part V: Donations Tax

55. Definitions for the purpose of this Part

 

(1)        In this Part, unless the content otherwise indicates—

 

"cumulative taxable value"

[Deleted by section 25(a) of Act No. 90 of 1988];

 

"donation" means any gratuitous disposal of property including any gratuitous waiver or renunciation of a right;

 

"donee" means any beneficiary under a donation and includes, where property has been disposed of under a donation to any trustee to be administered by him for the benefit of any beneficiary, such trustee: Provided that any donations tax paid or payable by any trustee in his capacity as such may, notwithstanding anything to the contrary contained in the trust deed concerned, be recovered by him from the assets of the trust;

 

"fair market value", means—

(a) the price which could be obtained upon a sale of the property between a willing buyer and a willing seller dealing at arm’s length in an open market; or
(b) in relation to immovable property on which a bona fide farming undertaking is being carried on in the Republic, the amount determined by reducing the price which could be obtained upon a sale of the property between a willing buyer and a willing seller dealing at arm’s length in an open market by 30 per cent;

 

"property" means any right in or to property movable or immovable, corporeal or incorporeal, wheresoever situated.

 

(2)        [Deleted by Revenue Laws Second Amendment Act No. 32 of 2005].

 

(3) For the purposes of this Part a donation shall be deemed to take effect upon the date upon which all legal formalities for a valid donation have been complied with.