Page 44 - Test 1 Slides - 4. Gross Income
P. 44

GROSS INCOME




            Change of residence - section 9H







          • Section 9H provides for a single charge when a person ceases to be a

              resident.

          • When a natural person or a company ceases to be a resident, that person

              is deemed to have disposed of all their assets at market value on the day

              before that person ceases to be a resident and reacquired all those assets
              at an expenditure equal to the market value on the day that person ceases

              to be a resident. This could trigger either a capital or a revenue gain.
              Subsection 9H(7) stipulates that the market value of such assets

              reacquired will be in the same currency in which the assets were originally

              acquired.


          • In the case of companies a dividend in specie is also deemed to have been
              declared – later discussion


          • Remember that in terms of section 9H(4), certain assets are excluded

              from this deemed disposal, for instance immovable property situated in
              the Republic.

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