A research report submitted to the Faculty of Commerce, Law and Management in partial
fulfilment of the requirements for the degree of Master of Commerce / The debt reduction provisions contained in s 19 and para 12A of the Eighth Schedule to the
Income Tax Act 58 of 1962 seek to reverse the tax benefits claimed or enjoyed by debtors
in relation to debt which has been forgiven, wholly or in part. In most cases, the application
of these provisions should not lead to any difficulty. Nevertheless, some scenarios are not
adequately provided for by the legislation, including debt reduction in favour of debtors
carrying on mining operations, as well as partial debt reductions. Furthermore, the
applicability of some of the exemptions to these provisions is unclear. Despite recent
amendments to these provisions, which will apply to years of assessment commencing on
or after 1 January 2013, the legislature has not addressed these issues.
Key words: allowance assets; base cost; capital assets; capital gains tax; debt forgiveness;
debt reduction; debt waiver; deemed donation; donation; donations tax; exemption; group
of companies; operating expenditure; mining capital expenditure; tracing of expenditure;
trading stock.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:wits/oai:wiredspace.wits.ac.za:10539/19417 |
| Date | 29 January 2016 |
| Creators | Van Reenen, Jane |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis |
| Format | application/pdf |
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