Page 94 - Companies & Dividend Tax
P. 94
CORPORATE RULES
Background
• There are specific requirements that should be fulfilled before
these sections can apply.
• If the requirements are met, it is important to note that the
corporate rules automatically apply in absence of a written
agreement between the parties stating that the specific section
should not apply.
• However, this rule does not apply to intra-group transactions
(section 45) where trading stock is regularly and continuously
disposed of between the parties involved.
• Thus, in a question, you have to establish if the requirements in
terms of the corporate rules have been met.
• The corporate rules do not apply if sections 24BA, 103, 80A to 80L
(excluded from the SAICA taxation examinable pronouncements)
and paragraph 11(1)(g) of the Eighth Schedule are applicable.
94
