Gas Regulator Levies Act, 2002
R 385
Income Tax Act, 1962 (Act No. 58 of 1962)Chapter II : The TaxesPart I : Normal Tax22A. Schemes of arrangement involving trading stock |
| (1) | If, under any scheme of arrangement or reconstruction of any company or its affairs (including any scheme for the amalgamation of two or more companies and any other scheme) which is sanctioned by any order of court on or after the first day of April, 1971, any company (hereinafter referred to as the transferee company) has, before 1 October 2001, acquired from any other company (hereinafter referred to as the transferor company) any asset which was trading stock of the transferor company, and in respect of such acquisition— |
[Words preceding section 22A(1)(a) substituted by section 31 of the Second Revenue Laws Amendment Act, 2001 (Act No. 60 of 2001)]
| (a) | no consideration measurable in terms of money accrued from the transferee company to the transferor company; or |
| (b) | a consideration accrued from the transferee company to the transferor company the money value of which was less than the market value of such asset on the date on which the transferee company acquired such asset, |
such asset shall for the purposes of this Act be deemed to be trading stock of the transferee company, and, where paragraph (a) is applicable—
| (i) | the transferee company shall be deemed to have acquired such asset at a price equal to the cost price thereof the transferor company; and |
| (ii) | notwithstanding the provisions of section 22(2), no deduction shall, in the determination of the taxable income of the transferor company for the year of assessment of that company during which the transferee company acquired such asset, be made in respect of the value of such asset as trading stock. |
| (2) | Any amount which is received by or accrues to the transferee company from the disposal of the said asset (or of any interest therein) shall be included in that company's income, whether such amount is derived in carrying on any trade or otherwise or is derived from a source within or outside the Republic. |
[Section 22A inserted by section 19(1) of the Income Tax Act, 1971 (Act No. 88 of 1971)]
