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.
Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.