Section Requirements Checker

Summary

• relief sections qualifying

  0

• anti-avoidance triggers active

  0

• sections still incomplete

  11

Answers and verdicts

• s 42, Asset-for-share transaction

  Review, incomplete

• s 24N, Deferral of proceeds on a share disposal

  Review, incomplete

• Para 38, Connected-person deemed market value

  Review, incomplete

• s 24BA, Value-for-value on shares issued

  Review, incomplete

• s 40CA / 40CB, Base cost of the asset acquired

  Informational

• s 24O, Interest deduction on acquisition debt

  Review, incomplete

• s 8EA, Preference-share "qualifying purpose"

  Review, incomplete

• s 45, Intra-group transaction

  Review, incomplete

• s 64F, Inter-company dividend exemption

  Review, incomplete

• s 22B / para 43A, Dividend stripping

  Review, incomplete

• s 9C, Deemed capital nature

  Review, incomplete

• s 58 / 56, Deemed donation on undervalue

  Review, incomplete

lawvero · Illustrative qualifier, confirm against the current Act and in a written opinion. Rates 2026/27.

s 42, Asset-for-share transaction

Roll-over relief. Verdict: Review, incomplete

• An asset is disposed of to a company?

  (Yes / No)

  Not answered

• The transferee is a South African tax-resident company?

  (Yes / No)

  Not answered

• The consideration is equity shares issued by that company (or a qualifying debt)?

  (Yes / No)

  Not answered

• Market value of the asset is at least its base cost?

  MV of asset: Not answered · Base cost: Not answered

• Qualifying interest immediately after, unlisted needs at least 10% of BOTH equity shares and voting rights:

  Equity % Not answered · Voting % Not answered

• The asset retains its nature (capital to capital / stock to stock)?

  (Yes / No)

  Not answered

• [Watch s 42(5)/(6)] The shares and qualifying interest will be held for at least 18 months?

  (Yes / No)

  Not answered

• [Watch s 42(7)] The company will retain the asset for at least 18 months?

  (Yes / No)

  Not answered

s 24N, Deferral of proceeds on a share disposal

CGT timing relief. Verdict: Review, incomplete

• The disposal is of equity shares?

  (Yes / No)

  Not answered

• More than 25% of the price is due AFTER the seller's year-end?

  Due after year-end: Not answered · Total price: Not answered

• The amount payable is based on the company's future profits?

  (Yes / No)

  Not answered

• The profit linkage is genuine / arm's length (not a fixed price relabelled)?

  (Yes / No)

  Not answered

Para 38, Connected-person deemed market value

Eighth Schedule anti-avoidance. Verdict: Review, incomplete

• Is the disposal a donation?

  (Yes / No)

  Not answered

• Is the consideration NOT measurable in money?

  (Yes / No)

  Not answered

• Is it a disposal to a connected person at a price that is not arm's length?

  (Yes / No)

  Not answered

• Market value of the shares (used as deemed proceeds if it applies):

  MV: Not answered

s 24BA, Value-for-value on shares issued

Anti-avoidance. Verdict: Review, incomplete

• Does a company acquire the asset by issuing its OWN shares? (if No, s 24BA cannot apply)

  (Yes / No)

  Not answered

• Are the values matched, MV of asset roughly equal to MV of shares issued?

  MV of asset: Not answered · MV of shares issued: Not answered

• Does an exclusion apply (transferor holds ALL shares issued after; same group; or para 38 applies)?

  (Yes / No)

  Not answered

s 40CA / 40CB, Base cost of the asset acquired

Mechanic. Verdict: Informational

• Does the company acquire the asset by issuing its own shares? (drives s 40CA)

  (Yes / No)

  Not answered

• Market value of the shares immediately after issue, this becomes the company's base cost:

  Base cost: Not answered

• Are shares issued in settlement of a debt, e.g. a later loan capitalisation? (drives s 40CB)

  (Yes / No)

  Not answered

Informational. Under s 40CA the company's base cost in the asset equals the market value of the shares immediately after they are issued (shown). s 40CB governs base cost where shares settle a debt, confirm the current wording before a capitalisation.

s 24O, Interest deduction on acquisition debt

Relief. Verdict: Review, incomplete

• Is debt used to finance the acquisition of equity shares?

  (Yes / No)

  Not answered

• Is the target an "operating company" (at least 80% of receipts are income from a continuous business supplying goods/services)?

  (Yes / No)

  Not answered

• At the acquisition date, purchaser + target are in the same group, enter the % of the target acquired (needs more than 70%):

  Not answered

• The shares were acquired from a person NOT in the same group?

  (Yes / No)

  Not answered

s 8EA, Preference-share "qualifying purpose"

Escapes third-party-backed recharacterisation. Verdict: Review, incomplete

• [Gate] Is preference-share funding used? (if No, s 8EA is not in issue)

  (Yes / No)

  Not answered

• Are the funds applied for a "qualifying purpose", the direct/indirect acquisition of equity shares in an operating company?

  (Yes / No)

  Not answered

s 45, Intra-group transaction

Roll-over relief. Verdict: Review, incomplete

• Transferor and transferee are in the same group, enter the common holding % (needs at least 70%):

  Not answered

• Both are South African tax residents?

  (Yes / No)

  Not answered

• The asset retains its nature?

  (Yes / No)

  Not answered

• [Watch s 45(4)] No de-grouping within 6 years?

  (Yes / No)

  Not answered

s 64F, Inter-company dividend exemption

Dividends tax. Verdict: Review, incomplete

• Is the dividend's beneficial owner a South African resident company?

  (Yes / No)

  Not answered

s 22B / para 43A, Dividend stripping

Anti-avoidance. Verdict: Review, incomplete

• Is there a disposal of the shares by a company (or connected person)?

  (Yes / No)

  Not answered

• Extraordinary dividend? (dividend received exceeds 15% of the shares' market value)

  Dividend: Not answered · MV of shares: Not answered

• Received within 18 months before / in connection with the disposal?

  (Yes / No)

  Not answered

s 9C, Deemed capital nature

Character of the gain. Verdict: Review, incomplete

• Are the shares equity shares?

  (Yes / No)

  Not answered

• Held for at least 3 years?

  (Yes / No)

  Not answered

s 58 / 56, Deemed donation on undervalue

Donations tax. Verdict: Review, incomplete

• Adequate consideration, is the price at least market value?

  Consideration: Not answered · Market value: Not answered

• [Mitigant (s 55)] Is there a genuine commercial / BEE quid pro quo (not pure liberality)?

  (Yes / No)

  Not answered