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Tax Administration Act, 2011 (Act No. 28 of 2011)

Chapter 4 : Returns and Records

Part B : Reportable arrangements

34. Definitions


In this Part and in section 212, unless the context indicates otherwise, the following terms, if in single quotation marks, have the following meanings:



means any transaction, operation, scheme, agreement or understanding (whether enforceable or not);


"financial benefit"

means a reduction in the cost of finance, including interest, finance charges, costs, fees and discounts on a redemption amount;


"financial reporting standards"

means, in the case of a company required to submit financial statements in terms of the Companies Act, 2008 (Act No. 71 of 2008), financial reporting standards prescribed by that Act, or, in any other case, the International Financial Reporting Standards or appropriate financial reporting standards that provide a fair presentation of the financial results and position of the taxpayer;

[Definition substituted by section 37 of the Tax Administration Laws Amendment Act, 2013 (Act No. 39 of 2012)]



in relation to an "arrangement", means—

(a) a "promoter";
(b) a person who directly or indirectly will derive or assumes that the person will derive a "tax benefit" or "financial benefit" by virtue of an "arrangement"; or
(c) any other person who is party to an 'arrangement' listed in a public notice referred to in section 35(2);

[Definition substituted by section 39 of the Tax Administration Laws Amendment Act, 2015 (Act No. 23 of 2015)]


"pre-tax profit"

in relation to an "arrangement", means the profit of a "participant" resulting from that "arrangement" before deducting normal tax, which profit must be determined in accordance with "financial reporting standards" after taking into account all costs and expenditure incurred by the "participant" in connection with the "arrangement" and after deducting any foreign tax paid or payable by the "participant" in connection with the "arrangement";



in relation to an "arrangement", means a person who is principally responsible for organising, designing, selling, financing or managing the arrangement;

[Definition substituted by section 40(1)(b) of Act No. 44 of 2014]


"reportable arrangement"

means an 'arrangement' referred to in section 35(1) or 35(2) that is not an excluded 'arrangement' referred to in section 36;

[Definition inserted by section 40(1)(c) of Act No. 44 of 2014]


"tax benefit"

means the avoidance, postponement, reduction or evasion of a liability for tax.

[Definition substituted by section 40(1)(d) of Act No. 44 of 2014]


[Section 34 substituted by section 45 of the Tax Administration Laws Amendment Act, 2012 (Act No. 21 of 2012)]