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Income Tax Act, 1962 (Act 58 of 1962)

Chapter III: General Provisions

Part IIB: Reportable Arrangements

80N. Excluded arrangements (Repealed)

 

 

[Repealed by the Tax Administration Act, 2011 (Act No. 28 of 2011)].

 

1) An arrangement is an excluded arrangement if it is—
a) a loan, advance or debt in terms of which—
i) the borrower receives or will receive an amount of cash and agrees to repay at least the same amount of cash to the lender at a determinable future date; or
ii) the borrower receives or will receive a fungible asset and agrees to return an asset of the same kind and of the same or equivalent quantity and quality to the lender at a determinable future date;
b) a lease;
c) a transaction undertaken through an exchange regulated in terms of the Securities Services Act, 2004 (Act No. 36 of 2004); or
d) a transaction in participatory interests in a scheme regulated in terms of the Collective Investment Schemes Control Act, 2002 (Act No. 45 of 2002).

 

2) Subsection (1) applies only to an arrangement that—
a) is undertaken on a stand-alone basis and is not directly or indirectly connected to, or directly or indirectly dependent upon, any other arrangement (whether entered into between the same or different parties); or
b) would have qualified as having been undertaken on a stand-alone basis as required by paragraph (a), were it not for a connected arrangement that is entered into for the sole purpose of providing security and where no tax benefit is obtained or enhanced by virtue of that security arrangement.

 

3) Subsection (1) does not apply to any arrangement that is entered into—
a) with the main purpose of obtaining or enhancing a tax benefit; or
b) in a specific manner or form that enhances or will enhance a tax benefit.

 

4) The Minister may determine an arrangement to be an excluded arrangement by notice in the Gazette, if he or she is satisfied that the arrangement is not likely to lead to an undue tax benefit.