n Annual Survey of South African Law - Mining law




In terms of the section 47 of the Revenue Laws Amendment Act 35 of 2007, section 37A of the Income Tax Act 58 of 1962 was amended by substituting section 37A(7). The effect of the amended section 37A(7) is to clarify that if any rehabilitation company or trust contravenes the provisions of section 37A(1)() by distributing property from that company or trust for a purpose other than rehabilitation purposes provided for in section 37A, an amount equal to the market value of the property so distributed must be deemed to be taxable income which accrued to such company or trust during the year of assessment in which such distribution occurred. Such a company or trust will thus lose the tax deduction offered to rehabilitation companies or trusts and will be taxed in the normal course (see the discussion in A de Koker (1995) 6-18 - 3-4).


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