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Income Tax Act, 1962 (Act 58 of 1962)

Chapter III: General Provisions

Part IIB: Reportable Arrangements

80T. Definitions (Repealed)



[Repealed by the Tax Administration Act, 2011 (Act No. 28 of 2011)].


For the purposes of this Part—

‘arrangement’ means any transaction, operation, scheme, agreement or understanding (whether enforceable or not), including all steps therein or parts thereof, and includes any of the foregoing involving the alienation of property;

‘financial benefit’ means any reduction in the cost of finance, including interest, finance charges, costs, fees, and discounts in the redemption amount;

‘participant’ in relation to a reportable arrangement means—

a) any promoter; or
b) any company or trust which directly or indirectly derives or assumes that it derives a tax benefit or financial benefit by virtue of a reportable arrangement;

‘pre-tax profit’ in relation to an arrangement, means the profit of a participant resulting from that arrangement before deducting any normal tax, which profit must be determined in accordance with Generally Accepted Accounting Practice after taking into account all costs and expenditure incurred by that participant in connection with the arrangement and after deducting any foreign taxes paid or payable by that participant;

‘promoter’ in relation to a reportable arrangement means any person who is principally responsible for organising, designing, selling, financing or managing that reportable arrangement;

‘reportable arrangement’ means any arrangement as contemplated in section 80M;

‘tax’ includes any tax, levy, duty or other liability imposed by this Act or any other Act administered by the Commissioner;

‘tax benefit’ includes any avoidance, postponement or reduction of any liability for tax.