Uncertificated Securities Tax Act, 1998 (Act No. 31 of 1998)1. Definitions |
In this Act, unless the context indicates otherwise—
in relation to a security, includes any one or more of the following:
| (a) | the right or entitlement to receive any dividend or interest payable in respect of that security; or |
| (b) | the right to exercise or cause to be exercised in the ordinary course of events, any or all of the voting, conversion, redemption or other rights attaching to such security: |
Provided that where a company cancels or redeems its own securities, that company is deemed to have acquired the beneficial ownership in those securities.
in relation to a security includes the cancellation or redemption of that security but does not include any issue of that security;
means the closing price at which the securities were traded on the exchange on which the securities are listed, as determined by that exchange on each day on which trade in those securities occurs on that exchange: Provided that where the securities were not traded on the date of the transaction or other manner of acquisition, the closing price of those securities shall be deemed to be the closing price of those securities on the last business day, preceding the date of the transaction or other manner of acquisition, on which those securities were traded on that exchange, as determined by the exchange on which those securities are listed;
means the Commissioner for the South African Revenue Service;
means an exchange as defined in section 1 and licensed under section 10 of the Securities Services Act, 2004;
[deleted by the Revenue Laws Amendment Act No. 31 of 2005];
means any arrangement or agreement in terms of which—
| (a) | a person (hereinafter referred to as the lender) lends securities to another person (hereinafter referred to as the borrower) in order to enable that borrower to effect delivery (for any purpose other than for delivery to any lender in relation to that borrower unless the borrower can demonstrate that the arrangement was not entered into for purposes of the avoidance of any tax and was not entered into for purposes of keeping any position open for more than 12 months) of the security within 10 business days after the date of transfer of those securities from the lender to the borrower in terms of that arrangement; |
| (b) | that borrower in return contractually agrees in writing to deliver securities of the same kind and quality to that lender within a period of 12 months from the date of transfer of those securities from the lender to the borrower in terms of that arrangement; |
| (c) | that borrower is contractually required to compensate that lender for any distributions in respect of the securities which that lender would have been entitled to receive during that period had that arrangement not been entered into; and |
| (d) | that arrangement does not affect the lender’s benefits or risks arising from fluctuations in the market value of the securities: |
Provided that where—
| (1) | that borrower has not on delivered the securities within the period contemplated in paragraph (a); or |
| (2) | that borrower has not returned securities as contemplated in paragraph (b) to the lender within the period contemplated in that paragraph, that arrangement shall be deemed not to be a lending arrangement. |
means the lowest price at which the securities were traded on the exchange on which the securities are listed, as determined by that exchange on each day on which trade in those securities occurs on that exchange: Provided that where the securities were not traded on the date of the transaction or other manner of acquisition, the lowest price of those securities shall be deemed to be the lowest price of those securities on the last business day, preceding the date of the transaction or other manner of acquisition, on which those securities were traded on that exchange, as determined by the exchange on which those securities are listed;
means any person who is an authorised user as defined in section 1 of the Securities Services Act, 2004, providing services in respect of the buying and selling of securities;
means any person who holds in custody and administers securities or an interest in securities and who has been accepted in terms of section 34 of the Securities Services Act, 2004, by a central securities depository as a participant in that central securities depository;
includes any public authority, any municipality as defined in section 1 of the Income Tax Act, 1962 (Act No. 58 of 1962), any company, any body of persons (corporate or unincorporate), the estate of any deceased or insolvent person and any trust fund;
means the rate prescribed in paragraph (b) of the definition of "prescribed rate" in section 1 of the Income Tax Act, 1962 (Act No. 58 of 1962);
[deleted by Revenue Laws Amendment Act, No. 32 of 2004];
means—
| (a) | shares, depository receipts in public companies and other equivalent equities; and |
| (b) | derivative instruments and debentures that are convertible into any instrument contemplated in paragraph (a), |
that are listed on an exchange in the Republic;
[deleted by Revenue Laws Amendment Act, No. 32 of 2004];
[deleted by Revenue Laws Amendment Act, No. 32 of 2004];
means the tax payable in terms of this Act;