Page 19 - Capital Allowances Recoupments Part 1 (CTA)

Small Business Corporations (s 12E) Also see

Requirements to qualify as a „SBC‟ : Silke 16.4

- CC, (Pty) Ltd or co-operative

- All holders of shares = natural person (at all times)

- Gross income ≤ R20 Million (what if trade ≠ 12 months?)

- Member or H/S may not at any stage hold an interest/shares in

any other company (Exceptions?)

Allowed to hold shares in: listed co, CIS, Shelve Co with assets with

MV ≤ R5 000, Co that took steps to liquidate/deregister

In terms of s 41(4) [see Silke Chapter 16]

- Co ≠ Personal service provider.

- Not ≥ 20% of income = investment income and income from

rendering a personal service.