| (1) |
For the purpose of section 11 of the Act, the annual turnover of a firm at any time is the gross revenue of that firm from income in, into or from the Republic, arising from the following transactions and events as recorded on the firm's income statement for the immediately previous financial year prior to the merger, subject to the provisions of sub-items (2), (3) and (4): |
| (b) |
the rendering of services; and |
| (c) |
the use by others of the firm's assets yielding interest, royalties and dividends. |
| (a) |
When calculating turnover the following amounts may be excluded: |
| (i) |
any amount that is properly excluded from gross revenue in accordance with IFRS; |
| (ii) |
taxes, rebates, or any similar amount calculated and paid in direct relation to revenue, as for example,sales tax, value added tax, excise duties, and sales rebates, may be deducted from gross revenue; |
| (b) |
no adjustment is made for any amount that represents a duplication arising from transactions between the acquiring firm and the transferred firm; |
| (c) |
revenue excludes gains arising from non-current assets and from foreign currency transactions: and |
| (d) |
for banks and insurance firms, revenue includes those amounts of income required to be included in an income statement in terms of IFRS, but excluding those amounts contemplated in paragraph (c). |
| (3) |
lf, between the date of the most recent financial statements being used to calculate the turnover of a firm, and the date on which that calculation is being made, the firm has acquired the whole or any part of a business, any subsidiary company, an investment in any associated company or any interest in a joint venture (collectively "the recently acquired assets") not shown on those financial statements, or divested itself of the whole or any part of a business, any subsidiary company, an investment in any associated company or an interest in any joint venture (collectively "the recently divested assets") shown on those financial statements— |
| (a) |
the turnover generated by those recently acquired assets must be included in the calculation of the firm's turnover if this turnover should in terms of IFRS be included in the turnover of the firm; and |
| (b) |
the turnover generated by those recently divested assets in the immediately previous financial year may be deducted from the firm's turnover if this turnover was included in the turnover of the firm. |
| (4) |
If the financial statements used as a basis for calculating turnover or the turnover included in terms of sub-item (3)(a) are for more or less than 12 months, the values recorded on those statements must be pro-rated to the equivalent of 12 months. |
[Section 7 substituted by Notice No. 1254, GG 41245, dated 10 November 2017]
Copyright Act, 1978
