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Interpretation Note No.43 - Disposal of shares deemed to be of a capital nature (Section 9C)

11 October 2011   (0 Comments)
Posted by: SAIT Technical
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This Note provides clarity on the interpretation and application of section 9C, which deems the amount derived from the disposal of certain shares held for a continuous period of at least three years to be of a capital nature.

Interpretation Note No. 43 (Issue 2) "Circumstances in which Amounts Received or Accrued on Disposal of Listed Shares are Deemed to be of a Capital Nature” (31 August 2010) deals with section 9B, the predecessor to section 9C. Section 9B applies to the disposal of JSE-listed shares before 1 October 2007, and issue 2 therefore remains relevant to such disposals. It can be found on the SARS website under Legal & Policy/Interpretation Notes/Archive.

Section 9C was inserted into the Act by section 14(1) of the Revenue Laws Amendment Act No. 35 of 2007. It was deemed to have come into operation on 1 October 2007, and applies to any disposal of a "qualifying share” on or after that date.

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