A critical investigation of the interaction between sections 8(4)(a), 9H and paragraph 40 of the eighth schedule of the income tax act No. 58 of 1962 versus the current practice of The South African Revenue Service
Section 9H and paragraph 40 of the Eighth Schedule of the Income Tax Act No. 58 of 1962 (‘the Act’) determines that a person is deemed to dispose of all of his assets (bar a few exceptions) at market value when that person ceases to be a South African resident or passes away, respectively. This deem...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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AOSIS
2014-10-01
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| Series: | Journal of Economic and Financial Sciences |
| Subjects: | |
| Online Access: | https://jefjournal.org.za/index.php/jef/article/view/242 |
| _version_ | 1811329591350919168 |
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| author | Carien Straus Leonard Willemse |
| author_facet | Carien Straus Leonard Willemse |
| author_sort | Carien Straus |
| collection | DOAJ |
| description | Section 9H and paragraph 40 of the Eighth Schedule of the Income Tax Act No. 58 of 1962 (‘the Act’) determines that a person is deemed to dispose of all of his assets (bar a few exceptions) at market value when that person ceases to be a South African resident or passes away, respectively. This deemed disposal is treated as a disposal event for capital gains tax purposes in terms of the Eighth Schedule of the Act. The question that arises is whether this deemed disposal event gives rise to a recoupment in terms of section 8(4)(a). In practice there currently seems to be uncertainty with regard to this issue, as there are different interpretations and applications of these provisions. This article investigates the interaction between sections 8(4)(a), 9H and paragraph 40 of the Eighth Schedule in order to determine whether a section 8(4)(a) recoupment should be included, or not, in the taxpayer’s gross income according to paragraph (n) of the gross income definition found in section 1 of the Act. |
| first_indexed | 2024-04-13T15:46:22Z |
| format | Article |
| id | doaj.art-5c23d20e7ad84f8c88620817bf5fa02c |
| institution | Directory Open Access Journal |
| issn | 1995-7076 2312-2803 |
| language | English |
| last_indexed | 2024-04-13T15:46:22Z |
| publishDate | 2014-10-01 |
| publisher | AOSIS |
| record_format | Article |
| series | Journal of Economic and Financial Sciences |
| spelling | doaj.art-5c23d20e7ad84f8c88620817bf5fa02c2022-12-22T02:40:57ZengAOSISJournal of Economic and Financial Sciences1995-70762312-28032014-10-017388990610.4102/jef.v7i3.242181A critical investigation of the interaction between sections 8(4)(a), 9H and paragraph 40 of the eighth schedule of the income tax act No. 58 of 1962 versus the current practice of The South African Revenue ServiceCarien Straus0Leonard Willemse1Stellenbosch UniversityStellenbosch UniversitySection 9H and paragraph 40 of the Eighth Schedule of the Income Tax Act No. 58 of 1962 (‘the Act’) determines that a person is deemed to dispose of all of his assets (bar a few exceptions) at market value when that person ceases to be a South African resident or passes away, respectively. This deemed disposal is treated as a disposal event for capital gains tax purposes in terms of the Eighth Schedule of the Act. The question that arises is whether this deemed disposal event gives rise to a recoupment in terms of section 8(4)(a). In practice there currently seems to be uncertainty with regard to this issue, as there are different interpretations and applications of these provisions. This article investigates the interaction between sections 8(4)(a), 9H and paragraph 40 of the Eighth Schedule in order to determine whether a section 8(4)(a) recoupment should be included, or not, in the taxpayer’s gross income according to paragraph (n) of the gross income definition found in section 1 of the Act.https://jefjournal.org.za/index.php/jef/article/view/242Income Tax Act No. 58 of 1962 (as amended)recoupmentrecoupedrecovereddeemed disposal, proceeds |
| spellingShingle | Carien Straus Leonard Willemse A critical investigation of the interaction between sections 8(4)(a), 9H and paragraph 40 of the eighth schedule of the income tax act No. 58 of 1962 versus the current practice of The South African Revenue Service Journal of Economic and Financial Sciences Income Tax Act No. 58 of 1962 (as amended) recoupment recouped recovered deemed disposal, proceeds |
| title | A critical investigation of the interaction between sections 8(4)(a), 9H and paragraph 40 of the eighth schedule of the income tax act No. 58 of 1962 versus the current practice of The South African Revenue Service |
| title_full | A critical investigation of the interaction between sections 8(4)(a), 9H and paragraph 40 of the eighth schedule of the income tax act No. 58 of 1962 versus the current practice of The South African Revenue Service |
| title_fullStr | A critical investigation of the interaction between sections 8(4)(a), 9H and paragraph 40 of the eighth schedule of the income tax act No. 58 of 1962 versus the current practice of The South African Revenue Service |
| title_full_unstemmed | A critical investigation of the interaction between sections 8(4)(a), 9H and paragraph 40 of the eighth schedule of the income tax act No. 58 of 1962 versus the current practice of The South African Revenue Service |
| title_short | A critical investigation of the interaction between sections 8(4)(a), 9H and paragraph 40 of the eighth schedule of the income tax act No. 58 of 1962 versus the current practice of The South African Revenue Service |
| title_sort | critical investigation of the interaction between sections 8 4 a 9h and paragraph 40 of the eighth schedule of the income tax act no 58 of 1962 versus the current practice of the south african revenue service |
| topic | Income Tax Act No. 58 of 1962 (as amended) recoupment recouped recovered deemed disposal, proceeds |
| url | https://jefjournal.org.za/index.php/jef/article/view/242 |
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