TAXATION Knowledge list

Based on CA2025 Competency Framework

Cut-off date:

The cut-off date for taxation legislation examinable in the Initial Test of Competence (ITC) for
2025 is as follows:

Amendments promulgated by 31 January 2024* and which are effective for the 2024 year of
assessment. In other words, all amendments effective for years of assessment 2025 or later are
not examinable. Therefore, the 2025 ITC will assess individuals with a 2024 year of assessment
and non-natural persons with a December 2024 year of assessment (or earlier). If a withholding
tax rate is changed in the Budget Speech in February 2024, the new rate will be provided in the
ITC.
* SAICA reserves the right to change this to a later date should the relevant legislation not be
promulgated before this date

Monetary changes will be provided in the information or required if applicable.

Regulations and binding general rulings

Regulations and binding general rulings included in the SAICA Student Handbook are
examinable.

Interpretation Notes
Interpretation Notes will not be included in the SAICA Student Handbook, but to the extent that
an Interpretation Note creates a practice generally prevailing (refer to section 5 of the Tax
Administration Act), the relevant extract will be provided in the exam.
 TAXATION Knowledge list
Based on CA2025 Competency Framework

INCLUDED
The decision to keep a provision for assessment in the ITC is based on whether the following is true
for an entry level CA:
Practical, prevalent and relevant

EXCLUDED
The decision to scope out (for exam purposes) a provision for assessment in the ITC is based on the
following:
1. Specialised in nature
A provision (or part thereof) is excluded if
· its nature is considered specialised (as specified in the broad area exclusions).
· in relation to entities, situations, events, or transactions if the size or degree of complexity is not
likely to be encountered by an entry level CA(SA).

2. Not prevalent
A provision (or part thereof) is excluded if it is not considered to be prevalent. Prevalence is guided
by factors such as:
o frequency or how often it occurs in practice; and
o whether it is relevant in practice.

3. Duplication of principle
A provision (or part thereof) has also been excluded where the application or principles have already
been addressed in another section that has already been included.

4. Cognitive overload
Certain industries and content are specifically excluded as the volume of knowledge is too great
and/or complex to be covered in the academic programme OR such body of knowledge can be
obtained when CAs(SA), as lifelong learners (an objective of the programme) use their life-long
learning skills to continue to acquire new knowledge as and when it is required for their specific role,
either in the training programme or post-qualification.

BROAD AREAS EXCLUSIONS: Specialised in nature

Any provision or reference to a listed broad area exclusion is thus excluded (some examples
are provided, but are not exhaustive).
Advance Pricing Agreements New ss76A to 76P
Association not for gain (VAT)
Associations as taxpayers
Banking industry: Banks as taxpayers (e.g. also s22(1)(b) and s24JB)
Bargaining council
Body Corporates (Sectional Title)
Collateral arrangements
Collective Investment Schemes as taxpayers (including hedge funds)
Communications Licence Conversions
Controlled foreign companies (CFC) other than identifying whether a company is a CFC as defined Definition added

Co-operatives as taxpayers
Custom Controlled Areas (VAT)
Designated entities (VAT)
Dividend Stripping (s22B and par 19 & 43A of the Eighth Schedule)
Domestic treasury management companies
Donor Funded Projects (VAT)
Farming: Pastoral, Agricultural or other farming operations (thus also s 5(10))
Films
Foreign Investment Entity
Funds (Pension/Provident/RAF/Benefit/etc.) as taxpayers
Gambling Providers as taxpayers
Government (local and foreign) and governmental institutions/bodies/organisations (e.g. also water
services provider)
Grants and subsidies from governmental institutions/bodies/organisations
Headquarter Companies
Hedging instruments consisting of futures and options FCOC's now excluded (to bring in
line with C4.2 in competency
framework)
Hotel Keepers
Independent Power Producer Procurement Programme
Industrial Policy Projects
Insolvent Estates of a natural person
Insurers as taxpayers (both short-term and long-term insurers)
Land Reform Programmes
Micro Businesses (Turnover tax)
Mining (including rehabilitation companies and trusts; thus also s5(9))
Municipalities and Municipal Entities as taxpayers
National Key Points
Oil and Gas Companies
Operation of Cable and Wireless Businesses
Partnerships (local and foreign), including Public Private Partnerships and definition of qualifying
investor
Political parties as taxpayers
Public Benefit Organisations (PBOs) as taxpayers
Railways and rolling stock
Recreational Clubs as taxpayers
REITs as taxpayers (including linked unit definition)
 Security Lending Arrangements (e.g. also identical security definition and s22(4A) & (4B))
Share Block Companies
Share buy-back and rights issues in a group context (to align with the exclusion for financial Now excluded
reporting)
Sharia Compliant Financing Arrangements
Shipping Industry (Local and International), excluding pleasure crafts
Small Business Funding Entities as taxpayers (including definition of small, medium or micro-sized
enterprise)
Special Economic Zones (SEZs)
Sporting Bodies as taxpayers
Toll Road Operators
Trusts: Foreign, Special, Share Incentive Trusts and "qualifying investors"
Urban Development Zones (UDZs)
Venture Capital Companies
Welfare Organizations (VAT)

BROAD AREAS EXCLUSIONS: Not prevalent

Deceased estates of persons who died before 1 March 2016
Divorce orders granted prior to 1 March 2012
Pre-valuation date assets
Return of capital prior to 1 April 2012
Transfer of residence from company or trust before 31 December 2012

BROAD AREAS EXCLUSIONS: Cognitive overload

Debt funded assets (excluding trading stock) disposed of in prior year(/s) and written off in current Now excluded
year of assessment
Defined benefit plans and any corresponding tax consequences Now excluded
Interplay of s24I with para 43(1A) of the Eighth Schedule and other linked inclusions and deductions Now excluded
(see IN 101).
Public sector funds
Value shifting arrangements

BROAD AREA INCLUSIONS (From competency framework):

Tax strategy (refer minimum content in A5.1) Level 1
Tax risk management (refer minimum content in A5.2) Level 1
Tax morality (refer minimum content in A5.3) Level 1
Tax landscape in South Africa (refer minimum content in E1.1) Level 1
Customs and Excise Act 91 of 1964 (Consumption tax base) - no provision is included in the Level 1
knowledge list
Unemployment Insurance Contributions Act 4 of 2002 (Income tax base) - no provision is included in
the knowledge list
Skills Development Levies Act 9 of 1999 (Income tax base) - no provision is included in the
knowledge list
Interpretation of tax legislation (refer minimum content in E1.2) Levels differ
Donations tax, Estate duty and Trust Level 1

Reference INCOME TAX ACT

1(1) and 1(2) Definitions Yes
Will be stated / amount given / or other qualifications Yes
‘average exchange rate’ (will be given) Yes
‘contributed tax capital’ (figure for ‘tainted’ capital in terms of previous dividend definition will be Yes
stated)
‘funds’: pension/provident/RAF/preservation funds (approved status will be given) Yes
‘listed company’ (all companies listed on JSE and/or Foreign Exchange) Yes
‘listed share’ (all shares listed on JSE) Yes
‘living annuity’ (draw-down amounts will be given, and it will be stated that it falls within the allowed Yes
percentages)
‘municipal value’ (amount given) Yes
official rate of interest' (repo rate will be given)
‘permanent establishment’ (will be stated if applicable) Yes
‘portfolio of a collective investment scheme’ (approved status will be given) Yes
‘prescribed rate’ (rate given) Yes
‘REIT’ (approved status will be given) Yes
‘remuneration proxy’ (amount will be given) Yes
‘resident’ (number of days will be provided, and place of effective management will be stated) Yes
‘retirement date’ (date given) Yes
‘retirement interest’ (amount given) Yes

CHAPTER I: ADMINISTRATION
2 Administration of Act No
3 Exercise of powers and performance of duties No
3(4) Decisions subject to objection and appeal Yes
4 Exercise of powers and performance of duties by Minister No

CHAPTER II: THE TAXES

PART I: NORMAL TAX
5 Levy of normal tax and rates thereof Yes
6 Normal tax rebates Yes
6A Medical scheme fees tax credit Yes
6B Additional medical expenses tax credit Yes
6C Solar energy tax credit Yes
6quat Rebate or deduction in respect of foreign taxes on income Yes
6quat(1C) & (1D) SA source income subject to foreign tax No
6quin Rebate in respect of foreign taxes on income from source within Republic No
7 When income is deemed to have accrued/to have been received Yes
7 Low -interest loans to trust (i.e. only donations and interest-free loans are scoped in) No
7(2)(a) Spousal donations solely/mainly to avoid tax No
7(4) Cross donations No
7(6) Retention of power to change beneficiary No
7(7) Ceding of income No
7(8) SA source income to non-resident beneficiaries (i.e. only foreign source income is scoped in) No
7(11) Minimum individual reserve No
7A Date of receipt or accrual of antedated salaries or pensions and of certain retirement gratuities No
7B Timing of accrual and incurral of variable remuneration Yes
7C Loan, advance or credit granted to trust by connected person (cross-reference to preference share Yes
definition in s8EA is basic and included in scope)
7C(5)(b) Vested interest No
7D Calculation of amount of interest Yes
7E Time of accrual of interest payable by SARS Yes
7F Deduction of interest repaid to SARS Yes
8 Certain amounts to be included in income or taxable income Yes
8(1)(a)(i)(cc), 8(1)(a)(iv) & (d) to (g) Public officers and government employees No
8(4)(b) Actuarial surplus No
8(4)(f) Obsolete roll-over provision No
8(4)(l) Transfer of financial arrangement No
8(4A) No recoupment on deemed allowance No
8A Gains made by directors of companies or by employees in respect of rights to acquire marketable No
securities
8B Taxation of amounts from broad-based employee share plan No
8C Taxation of directors and employees on vesting of equity instruments Yes
8C(1)(b)(ii) Linked with excluded s8B No
8C(1A) Special distribution rule No
8C(2)(a)(i)(aa), 2(b)(i)(aa), (5), (6) & Anti-avoidance relating to non arm's length connected person transfers No
par (c) and proviso’s to definition of
“consideration” in 8C(7)
8C(4) Swaps No
8E Dividends derived from certain shares and equity instruments deemed to be income in relation to the No (duplication of s8F principles)
recipients thereof
8EA Dividends on third-party backed shares deemed to be income in relation to recipients thereof No
8F Interest on hybrid debt instruments deemed to be dividends in specie Yes
8F Third-party backed instruments No
8FA Hybrid interest deemed to be dividends in specie No
8G Determination of contributed tax capital in respect of shares issued to a group company No
9 Source of income Yes
9(1), 9(2)(c), (d), (e), (f) & 4(c) Royalties and know-how payments No (duplication of interest
principles)
9(1)(g) & (h) Public officers and government employees No
9(1)(l) & 9(4)(e) Foreign exchange difference No
9A Blocked foreign funds No
9C Circumstances in which certain amounts received or accrued from disposal of shares are deemed to Yes
be of a capital nature
9C(2A) Linked with excluded s12J No
9C(3), Anti-avoidance relating to connected persons and shares linked to immovable property No
9D(1) Controlled Foreign Company definition Level 1
(ONLY to identify whether a company is a CFC in order to refer to a tax specialist for the tax
implications)
9H Change of residence Yes
9H All provisions relating to s8A and s8B No
9HA Disposal by deceased person Yes
9HB Transfer of assets between spouses Yes
9J Interest of non-resident persons in immovable property Yes
9K Listing of security on exchange outside Republic No
10 Exemptions Yes
10(1)(c) President and Foreign diplomats related No
10(1)(gE) Amount awarded by beneficiary fund No
10(1)(gH) Certain insurance pay-outs (similar to s10(1)(gI)) No (duplication of s10(1)(mB)
principles)
10(1)(gJ) Payments from certain funds to member of bargaining council No
10(1)(hA) Linked to excluded s23K No
10(1)(iB) Linked to detail in excluded s25BA No
10(1)(k)(i) proviso (dd) - (kk) Anti-avoidance relating to dividend schemes No
10(1)(l) & (lA) Royalties, Foreign entertainers and sportsperson No (duplication of WHT
principles)
10(1)(nC) & (nE) Linked to excluded s8A and s8B No
10(1)(nE) Stop-loss provision for share incentive scheme No
10(1)(o)(i) & (o)(iA) Crew members No (duplication of s10(1)(o)(ii)
principles)
10(1)(o)(ii) Proviso B, 10(1)(p), (r) Public officers and government employees No
10(1)(y) Government grants No
10(5) Disqualification from managing collective interests No
10A Exemption of capital element of purchased annuities (capital element will be given) Yes
10A(3) – (11) Actuarial computations No
10B Exemption of foreign dividends and dividends paid or declared by headquarter companies Yes
10B(6) & (6A) Anti-avoidance provision relating to share schemes No
10(6A) Dividends applied against deductible payments No
10C Exemption of non-deductible element of qualifying annuities Yes
11 General deductions allowed in determination of taxable income Yes
11(h) Amount will be provided Yes
11(j) Question will state if IFRS 9 is applied or not and provide either the IFRS 9 loss allowance or days Yes
that debt is in arrears.
(f)(v), (vi) & proviso (dd) & (ee) Linked to excluded s12D No
11(gA) Obsolete provision (not effective from 2004) No
11(gD) Government business licences No
11(hB) Linked to Petroleum Resources Development Act No
11(lA) Linked to excluded s8B No
11(w) Life-insurance premiums paid by employers No
11A Deductions in respect of expenditure and losses incurred prior to commencement of trade Yes
11D Research and Development No
11F Deductions in respect of contributions to retirement funds Yes
11G Deductions of expenses incurred in production of interest Included to raise awareness of
repeal of PN31
(effective from 1 January 2025)
12B Deduction i.r.o. certain machinery, plant, implements, utensils and articles used in farming or Yes
production of renewable energy
12BA Enhanced deduction i.r.o. certain machinery, plant, implements, utensils and articles used in Yes
production of renewable energy.
12C Deduction in respect of assets used by manufacturers and in respect of aircraft and ships Yes
(Manufacturing (or similar) process will be stated)
12C(1)(bA) Automotive Production and Development Programme No
12D Deduction in respect of certain pipelines, transmission lines and railway lines No
12E Deductions in respect of small business corporations Yes
(Manufacturing (or similar) process will be stated)
12F Deduction in respect of airport and port assets No
12H Additional deduction in respect of learnership agreements Yes
(whether the agreement is a “registered learnership agreement”, date of registration and NQF level
will be given)
12K Exemption of certified emission reductions No
12L Allowance for energy efficiency savings No
12M Deduction of medical lump sum payments No
12N Deductions in respect of improvements not owned by taxpayer No
12NA Deductions in respect of improvements on property in respect of which government holds a right of No
use or occupation
12T Exemption of amounts received or accrued in respect of tax-free investments Yes
(It will be stated whether or not the investment meets the requirements to be a “tax free investment”)

12T(8) & (9) Regulations and enforcement No

12U Additional deduction in respect of roads and fences in respect of production and renewable energy No

13 Deductions i.r.o. buildings used in a process of manufacture Yes

(Manufacturing (or similar) process will be stated)
Furthermore, tax values and allowances of buildings erected prior to 1 January 1989 (2% rule) or
during the 10% write-off period will be provided)
13(1A) Deemed allowances No
13ter Deductions in respect of residential buildings No
13quin Deduction in respect of commercial buildings Yes
13sex Deduction in respect of certain residential units Yes
13sept Deduction i.r.o. sale of low-cost residential units on loan account No
18A Deduction of donations to certain organisations Yes
(It will be stated that the s18A receipt was obtained.)
18A(1A) - (2D), (3A), (3B), (4) – (7) Regulations, requirements, donations of immovable property, intangible assets and financial No
instruments, and fiduciary responsibilities of PBO's
19 Concession or compromise in respect of a debt Yes
(context will indicate whether it is a commercial decision or a donation)
20 Set-off of assessed losses Yes
20A Ring-fencing of assessed losses of certain trades Yes
20B Limitation of losses from disposal of certain assets Yes
21 Deduction of alimony, allowance or maintenance No
22 Amounts to be taken into account in respect of values of trading stocks – other than listed below Yes
22(1A) Transitional Sales Tax provision No
22(2A) & (3A) Construction contracts No
22A Schemes of arrangement involving trading stock No
23 Deductions not allowed in determination of taxable income Yes
23(p) Cession of policy of insurance No
23A Limitation of allowances granted to lessors of certain assets No
23B Prohibition of double deductions Yes
23C Reduction of cost or market value of certain assets Yes
23C(2) Transitional Sales Tax provision No
23D Limitation of allowances granted in respect of certain assets No
23F(1) Acquisition or disposal of trading stock Yes
23F(2) – (3) Second anti-avoidance provision No
23G Sale and leaseback arrangements No
23H Limitation of certain deductions Yes
23I Prohibition of deductions in respect of certain intellectual property including amendments No
23K Limitations of deductions i.r.o. reorganisation transactions No
23L Limitations of deductions i.r.o. certain short-term insurance policies No
23M Limitations of interest deductions in respect of debt owed to persons not subject to tax under this No
chapter
23N Limitations of interest deductions in respect of reorganisations and acquisition transactions No
23O Limitation of deductions by small, medium or micro-sized enterprises in respect of amounts received No (duplication of s23(n)
or accrued from small business funding entities principles)
24 Credit agreements and debtors’ allowance (gross profit method only) Yes
24A Transactions whereby fixed property is or company shares are exchanged for shares No
24BA Transactions where assets are acquired as consideration for shares issued Yes
24C Allowance in respect of future expenditure on contracts Yes
(The methods which must be used to make this determination will be given.)
24I Gains or losses on foreign exchange transactions Yes
(For purposes of s24I(10A), re-classifications may be ignored and full loan is assumed non-current)
24J Incurral and accrual of interest Yes
24J(1) 'adjusted gain/loss on transfer or redemption of an instrument', 'alternative method', 'date of No
redemption', 'interest' (par (b) & (c)), 'interest rate agreement', 'lending arrangement', 'redemption',
'redemption payment', 'repurchase agreement', 'resale agreement', 'short selling', transfer price',
'yield to maturity' provisos.
24J(3A), (4), (4A), Transfer or disposal of instruments No
24J(6) Instruments issued on or before 15 March 1995 No
24J(7) More than one issuer/holder No
24J(8) Both issuer and holder of instrument No
24J(9) & (9A) Linked to excluded s24K and 24L No
24J(12) Demand instruments No
24K Incurral and accrual of amounts i.r.o. interest rate agreements No
24L Incurral and accrual of amounts i.r.o. of option contracts No
24M Incurral and accrual of amounts in respect of assets acquired or disposed of for unquantified amount Yes

24N Incurral and accrual of amounts in respect of disposal or acquisition of equity shares No
24O Incurral and accrual in terms of certain debts deemed to be in production of income Yes
24O(5) Linked to excluded s46 and s47 No
25 Taxation of deceased estates Yes
25A Determination of taxable incomes of permanently separated spouses Yes
25B Taxation of trusts and beneficiaries of trusts Yes
25D Determination of taxable income in foreign currency Yes
25D(2A) Hyperinflation No
25E Determination of contributed tax capital in foreign currency No
26A Inclusion of taxable capital gain in taxable income Yes
31 Taxable income in respect of international transactions to be based on arm’s length principle. Arm’s Yes
length terms and conditions will be given along with whether entities are “associated enterprises”

31(3) proviso Obsolete transitional rule No

31(4)(b) Linked with excluded intellectual property rules No
31(7) Equity loan (quasi equity) exemption No
33 Assessment of owners or charterers of ships or aircraft who are not residents of the Republic No
35A Withholding of amounts from payments to non-resident sellers of immovable property Yes
35A(8) – (13) Administrative provisions No
37B Deductions i.r.o. environmental expenditure No
37C Deductions i.r.o. environmental conservation and maintenance No
37D Allowance i.r.o. land conservation i.r.o. nature reserves or national parks No
37F Determination of taxable income derived by persons previously assessable under certain other laws No

37G Determination of taxable income derived from small business undertakings No

PART II: Special Provisions Relating to Companies

38 Classification of companies No
39 Redetermination of company’s status No
40A & 40B Conversions to a company No
40C Issue of shares or granting of options/rights for no consideration Yes
40CA Acquisition of assets in exchange for shares or debt issued Yes

PART III: Special rules relating to asset-for-share transactions, substitutive share-for-share

transactions, amalgamation transactions, intra-group transactions, unbundling transactions
and liquidation distributions
41 General Yes
41(4) Deemed steps to liquidate, wind up or deregister, No
42 Asset-for-share transactions Yes
42(1) “asset-for-share transaction” par (a) proviso (CIS), par (b) (foreign re-organisations); "qualifying No
interest" par (b) & (e)
42(2) 42(2)(a)(i)(bb) (foreign re-organisations); Proviso to 42(2)(b) (anti-avoidance) No
42(3A) proviso Anti-avoidance No
42(5) – (8) Anti-avoidance aspects No
43 Substitutive share-for-share transactions No (duplication of other corporate
reorganisation principles)

44 Amalgamation transactions No (duplication of other corporate

reorganisation principles)

45 Intra-group transactions Yes

45(1) “intra-group transaction” par (b) (foreign re-organisations) No
45(3A) – (5) Anti-avoidance aspects No
45(6)(d) Linked to excluded s46 No
46 Unbundling transactions No (duplication of other corporate
reorganisation principles)

46A Limitations of expenditure incurred in respect of shares held in an unbundling company No

47 Transactions relating to liquidation, winding-up & deregistration No (duplication of other corporate
reorganisation principles)

47A – 47K PART IIIA No (duplication of WHT

Taxation of foreign entertainers and sportspersons principles)

48 – 48C PART IV No
Turnover tax payable by micro businesses

49A – 49H PART IVA No (duplication of WHT

Withholding tax on royalties principles)

50A – 50H PART IVB Yes

Withholding tax on interest
S50D(1)(b), (c) & (d) Special entities and anti-avoidance No
50D(2) Anti-avoidance scheme No
50G Refund of withholding tax on interest No

PART V Level 1 (in competency

Donations Tax framework)
54 Levy of donations tax Level 1
55 Definitions for purposes of this Part Level 1
56 Exemptions Level 1
57 Disposals by companies under donations at the instance of any person Level 1
57A Donations by spouse married in community of property Level 1
57B Disposal of the right to receive an asset which would otherwise have been acquired in consequence Level 1
of services rendered or to be rendered
58(1) Property disposed of under certain transactions deemed to have been disposed of under a donation Level 1

58(2) Anti-avoidance linked with s8C Level 1

59 Persons liable for the tax Level 1
60 Payment and assessment of the tax Level 1
61 Extension of scope of certain provisions of Act for purposes of donations tax Level 1
62 Value of property disposed of under donations Level 1
64 Rate of donations tax Level 1

PART VIII
Dividends Tax
64D Definitions (It will be stated that an entity is a ‘regulated intermediary’) Yes
64E Levy of tax Yes
64EA Liability for tax Yes
64EB Deemed beneficial owners of dividends No
64F Exemptions from tax i.r.o. dividends other than dividends comprising distributions of assets in specie Yes

64F(2) Transitional rule No

64FA Exemption from and reduction of tax i.r.o. dividends in specie Yes
64FA(1)(c) Obsolete transitional rule No
64G Withholding of dividend tax by co. declaring and paying dividends Yes
64H Withholding of tax by regulated intermediaries Yes
64K Payment and recovery of tax Yes
64L Refund of tax i.r.o. dividends declared and paid by companies No
64LA Refund of tax in respect of dividends in specie No
64M Refund of tax i.r.o. dividends paid by regulated intermediaries No
64N Rebate in respect of foreign taxes on dividends Yes

CHAPTER III GENERAL PROVISIONS

Part I Returns
66 Notice by Commissioner requiring returns for assessment of normal tax under this Act No
67 Registration as taxpayer Yes
68 Income and capital gain of married persons and minor children No (duplication of s7(10)
principles)

Part IIA
80A Impermissible tax avoidance arrangements Yes
80A(a)(ii) & 80A(c)(ii) Lack of commercial substance and misuse/abuse of the Act No
80B Tax consequences of impermissible tax avoidance Yes
80C - F Lack of commercial substance, Round trip financing, Accommodating or tax-indifferent parties, No
Treatment of connected persons and accommodating or tax-indifferent parties
80G Presumption of purpose Yes
80H Application to steps in or parts of an arrangement Yes
80I-K Use in the alternative, Notice and Interest No
80L Definitions (only relating to provisions in scope) Yes

Part III: Objections and Appeals

88 Payment of tax pending objection and appeal No

89 - 91 Part IV: Payment and Recovery of Tax No

Part VI: Miscellaneous

102 Refunds and set off No
103 Transactions, operations or schemes for purposes of avoiding or postponing liability for or reducing Yes
amounts of taxes on income
103(5) Cessions No
103(6) Transitional provision No
107 Regulations No
108 Prevention of or relief from double taxation Yes
Treaties included: Mauritius and the UK will be printed in the SAICA Student Handbook. The
interrelationship between domestic legislation and the following articles are included:
- Resident (article 4)
- Immovable property (rental and CGT) (articles 6 and 13)
- Business Profits (article 7(1)). Do not assume that a person carries on business
through a “Permanent Establishment”. It will be specifically stated if applicable.
- Dividends (article 10)
- Interest (article 11)
- Employment (article 14)
- Pensions (article 17)
- Elimination of double tax (article 21 (UK DTA) and article 22 (Mauritius DTA))
DTAs must be read in conjunction with the Multilateral Convention to Implement Tax Treaty Related No
Measures to Prevent Base Erosion and Profit Shifting, but is not included in the knowledge list for
this year.

Second Schedule Computation of gross income derived by way of lump sum benefits Yes
Excluding ceded insurance policies Now excluded
Second Schedule Par 3B: Termination of trust No
Fourth Schedule Amounts to be deducted or withheld by employers and provisional payments in respect of normal tax Yes

Fourth Schedule Exclusions (aa), (bb), (cc), (dd) Item A, and (ee) of the definition of “provisional taxpayer” & par (d), No
(f), (g)(i), (ii) & (iv) of the definition of “remuneration” in par 1.
Seventh Schedule Benefits or advantages derived by reason of employment or the holding of any office Yes
(Relevant “retail market value” and par 12D cash equivalent of the fringe benefit value will be given)
Eighth Schedule Determination of taxable capital gains and assessed capital losses Yes
(Paragraph 31 market values will be given)
Par 17 Forfeited deposits Now excluded
Par 18 Disposal of options Now excluded
Par. 35A Disposal of certain debt claims No
Par. 37 Assets of trusts and company No
Par 38(2) (a), (b), (c) & (f) that link to s8A, 8B, 10(1)(nE) & 37D No
Par. 42 Short-term disposal and acquisitions of identical financial instruments No
Par. 64B(2) - (6) Disposal of interest in equity share capital of foreign co. No
Par. 64C Disposal of restricted equity instruments No
Par. 68(1) Attribution of capital gain to spouse mainly to avoid tax No
Par. 71 Attribution of capital gain subject to revocable vesting No
Par. 72 Foreign trusts and non-resident beneficiaries No

VALUE ADDED TAX ACT

The following is deemed to be practical, prevalent and relevant

23 VAT Registrations (limited to invoice basis)

18(1) Pre-incorporation: Goods or services acquired before incorporation
When taxpayers must register for VAT, including:
50 separate branch registrations; and
electronic services providers (it will be stated if an activity is an electronic service as envisaged)

Input tax
9 & 10 When a vendor is entitled to claim an input (time and value)
17(2) Denied inputs
Output tax
9 & 10 When a vendor is required to levy output tax (time and value)
7 standard rated; and
11 zero-rated (including Schedule 2 Parts B and C)
12 Exempt supplies
Deemed supplies, only in relation to:
18(3) fringe benefits; and
8(8) insurance pay-outs
Adjustments
Change of use, limited to either:
18(1) 100% to 0% taxable supplies; or
18(4) 0% to 100% taxable supplies
22 Irrecoverable debts
Special rules relating to:
54 Agents
1 & 10(10) Commercial accommodation
1, 9(2)(a) & 10(4) Connected persons
1 Donations to PBO
11 Exportation of goods and services (excluding s11(1)((a)(ii): exportation by recipient)
Fixed property
11(1)(e) Going concern, limited to mainly taxable supply scenarios. New scope limitation
13 Importation of goods and services (excluding Schedule 1)
9(3)(c) &10(6) Instalment Credit Agreements
8(4) Lay-by
8(29), 9(12) & 18C Leasehold improvements
1, 16 and other Second-hand goods
18D Temporary letting of residential property
Exit provisions
8(2) Ceasing to be a vendor

Value-Added Tax Act Adapted detail as per ITC 2024 Examinable pronouncements for added clarity
1 Definitions Yes
(It will be stated if a service is an “electronic service” or a person is an “intermediary”.)
“association not for gain”, “Controller”, “customs authority”, customs controlled area, customs No
controlled area enterprise, designated entity, par (b)(i) – (v) of the definition of “enterprise”, proviso
(vi), (viii), (x) - (xv) to the definition of “enterprise”, paragraph (d) of the definition of “exported”,
foreign donor funded project”, “grant”, “inbound insurance policy”, “international journey”, “licenced (proviso (xiv) and newly added
customs and excise storage warehouse”, “outbound insurance policy”, “public authority”, SEZ, SEZ (xv) of definition of enterprise
operator”, share block companies”, share block control Act”, Special Economic Zones Act, “storage added to the exclusion list - see
warehouse”, “welfare organisation” bold emphasis)
2 Financial services, only debt security (c), issue, allotment or transfer of ownership of an equity Yes
security (d), provision of credit (f), provision of long-term insurance (i) and the issue, acquisition,
collection, buying or selling or transfer of ownership of any cryptocurrency (o).
Rest of section No
3 Determination of ‘open market value’ Yes
4-6 Administration No
7 Imposition of value-added tax Yes
7(3) No
8 Certain supplies of goods or services deemed to be made or not made Yes
NEWLY inserted s8(8A) regarding reinstatements No
8(2A) – (2G), (5), (5A), (5B), (6), (13), (13A), (14)(b), (14A), (17) – (20), (22) – (24), the further
proviso to (25),(26) & (28)
8A Sharia compliant financing arrangements No
9 Time of supply Yes
9(2)(d), (3)(e) & (f), 9(9), 9(10) and 9(11) No
10 Value of supply of goods or services Yes
10(4A), (8), (14), (17), (17A), (21A), (22B), (24), (25) & (27) No
11(1) Zero-rating (supply of goods) Yes
11(1)(a)(ii), (b) - (d), (f), (g), (hA), (m), (mA), (n), (p), (r)- (v) No
11(2) Zero-rating (supply of services) Yes
11(2)(g), (h), (j), (m), (n), (q), (s), (t), (u), (v), (x), (y) No
11(3) Principle Yes
12 Exempt supplies Yes
Sub-sections (b), (d), (e), (f), (k), (l) & (m) No
13 Collection of tax on importation of goods, determination of value thereof and exemptions from tax Yes

13(5) & (6)

13(2B) Value will be provided No
14 Collection of value-added tax on imported services, determination of value thereof and exemptions Yes
from tax
14(4) No
15 Accounting basis Yes
15(2)(a), 15(2A), (3) – (9) No
16 Calculation of tax payable Yes
(excluding broad area exclusions, e.g. prizes and gambling)
17 Permissible deductions in respect of input tax Yes
17(2)(a)(ix) & 17(2)(d) No
18 Change in use adjustments Yes
(excluding ss 18(4)(a), 18(9) & 18(10)) No
ss 18(2) & 18(5) Level 1
18A Adjustments in consequence of acquisition of going concern wholly or partly for purposes other than Yes, with scope limitation
making taxable supplies. (The ratio of taxable supplies will remain the same.)
18B Temporary letting of residential fixed property No
18C Adjustments for leasehold improvements Yes
18D Temporary letting of residential property Yes
19 Goods or services acquired before incorporation Yes
20 Tax invoices Yes
21 Credit and debit notes Yes
22 Irrecoverable debts Yes
23 Registration of persons making supplies in the course of enterprises Yes
23(3)(b)(ii)(AA), (3A) & (5) No
24 Cancellation of registration Yes
25 Vendor to notify change of status No
26 Liabilities not affected by person ceasing to be vendor No
Part IV Returns, Payments and
Assessments
27 Tax period (category will be given) Yes
27(2) – (5) No
28 & 29 Returns and payments of tax; Special records and payments No
31 Assessments No
32 Part V: Objections to certain decisions or assessments Yes
38 – 46 Part VI and Part VII No
Part VIII Special Provisions
50 Separate enterprises, branches and divisions Yes
50(1) Proviso No
50A Separate persons carrying on same enterprise under certain circumstances deemed to be single Yes
person
51 Bodies of persons, corporate or un-incorporate (other than companies) No
52 Pooling arrangements No
53 Death or insolvency of vendor (excluding insolvency) Yes
54 Agents (excluding auctioneers) (It will be clear from the information that there is an agent/principal Yes
relationship)
54(2A)(b) No
54(2C) (NEW section regarding agent supplying gold) No
55 - 87 Parts IX and X (Compliance and Miscellaneous) No
(except for sections 64 & 65)
64 & 65 Prices deemed to include tax and prices advertises of quoted Yes
66 – 87 Miscellaneous No
(was omitted on previous lists)
Schedule 1 Exemption: Certain Goods Imported in the Republic No
Schedule 2 Part A No
Schedule 2 Part B (Zero rate: Supply of goods consisting of certain foodstuffs) Yes
Schedule 2 Part C (section 11(1)(w)) Yes

Estate Duty Act Level 1 (in competency

framework)

Transfer Duty Act – only the listed sections

2(1)(b) Imposition of Transfer Duty (value of the property will be given) Yes
9 Only the following exemptions: 9(1)(e), (i) & (l), 9(15) & (15A) Yes

Securities Transfer Tax Act – only the listed section

2 Imposition of tax (the taxable amount will be given) Yes
8 Only the following exemptions: 8(1)(a), (h), (j), (n) & (r) Yes

Tax Administration Act

The following is deemed to be practical, prevalent and relevant

22 Registration requirements Yes

25 Submission of returns Add to align with CFW
26 Third party returns Add to align with CFW
29 Duty to keep records Yes
91-93 Original, additional & reduced assessments Yes
99 Period of limitation for issuance of assessments Yes
102 Burden of proof Yes
104 Objection against assessment or decision Yes
Government Gazette 37819 (Notice 550): "day" means a "business day" as defined in section 1 of
the TAA and Rule 6 & 7 will be printed in the SAICA Student
164 Payment of tax pending objection or appeal Yes
180 Liability of financial management for tax debt Yes
208 - 220 Administrative non-compliance penalties (ss208 - 220), but excluding reportable arrangement and Yes
mandatory disclosure penalty.
221 - 224 Imposition of Understatement Penalty Yes
234 Criminal offences relating to non-compliance with tax Acts Yes
235 Evasion of tax and obtaining undue refunds by fraud or theft Yes
236 Criminal offences relating to secrecy provisions Yes
237 Criminal offences relating to filing return without authority Yes
238 Jurisdiction of courts in criminal matters Yes
239 - 243 Registration of Tax Practitioners and Reporting of unprofessional conduct Yes

All other provisions are excluded due to cognitive overload

Principles from case law
The following principles apply for a court case to appear on the list:

Court cases clarifying terminology within the Income Tax Act and VAT Act in respect of any tax provision included in the
knowledge list
Court cases changing prevailing practice and or interpretation of any tax provision included in the knowledge list

Any new additions to the list must be Supreme Court of Appeal Cases only – based on the above principles (i.e. only ratio
decidendi principles – not obiter dictum).
It is up to each academic to decide which additional cases will be used as teaching aids. Marks will be for principles from
these cases when relevant to a discussion. No marks will be awarded for the case names.

Relevant to the definition of “gross income” in s1(1)

Words or phrase considered Taxpayer
resident Cohen
Kuttel
amount Brummeria Renaissance (Pty) Ltd
Butcher Bros (Pty) Ltd
from a source within ...the Republic Lever Brothers and Unilever Ltd
accrued to People’s Stores (Walvis Bay) (Pty) Ltd
Witwatersrand Association of Racing Clubs
Lategan
Mooi
received by Geldenhuys
MP Finance Group CC (In Liquidation)
Pyott Ltd
of a capital nature – intention of company Capstone 556 (Pty) Ltd (excl. transaction/scheme details)
of a capital nature – scheme of profit- making Pick ‘n Pay Employee Share Purchase Trust
of a capital nature – mixed or dual intention Stott
Nel

of a capital nature – change in intention Nussbaum

Natal Estates Ltd
Founders Hill (Pty) Ltd
John Bell & Co (Pty) Ltd
of a capital nature – the nature of the ‘asset’ George Forest Timber Co Ltd
Nel
Damages and compensation WJ Fourie Beleggings
Stellenbosch Farmers’ Winery Limited (25 May 2012)
the legality or otherwise Delagoa Bay Cigarette Co Ltd
of the business productive of Income MP Finance Group CC (in liquidation)

Relevant to section 11(a)

Words or phrase considered Name of the court case
Requirements in general and if income must be earned in the Sub-Nigel Ltd
same year
carrying on a trade Burgess
Scribante Construction (Pty) Ltd
in the production of income Port Elizabeth Electric Tramway Co Ltd
Joffe & Co (Pty) Ltd
BP Southern Africa (Pty) Ltd v CSARS (2007)
Provider
Mobile Telephone Networks Holdings (Pty) Ltd
Expenditure actually incurred Edgars Stores Ltd
Nasionale Pers Bpk
Golden Dumps (Pty) Ltd
Labat
not of a capital nature New State Areas Ltd v CIR
Rand Mines (Mining & Services) Ltd
CSARS v BP South Africa (Pty) Ltd (2006)

Clarifying terminology/concepts in other section/provisions

Section 7 Berold
“by reason of” “gratuitousness” Woulidge (2002 decision)
Section 11(d) Flemming
“repair” African Products Manufacturing Co Ltd
Section 20 SA Bazaars (Pty) Ltd
“carrying on of trade” Robin Consolidated Industries
Section 22 Ernst Bester Trust
“trading stock” “decrease in market value” Volkswagen SA (Pty) Ltd (2018)
Section 23(g) Warner Lambert SA (Pty) Ltd
“for purposes of trade”
Section 23H Telkom SA SOC Limited (2020)
“benefit extends beyond year of assessment”
Section 24C Clicks Retailers (Pty) Ltd (2021)
“in terms of a contract”
Seventh Schedule (par 2(e) or (h)) BMW South Africa (Pty) Ltd
“private benefit/use”
VAT British Airways PLC
Recoveries