97. Transactions during transitional period
| (1) | For purposes of this paragraph "transitional period" means the period from 23 February 2000 until and including the day before the valuation date. |
| (2) | Subject to subparagraph (3), where a person— |
[Words preceding paragraph 86(2)(a) of the Eighth Schedule substituted by section 112(1)(a) of the Second Revenue Laws Amendment Act, 2001 (Act No. 60 of 2001)]
| (a) | acquired an asset during the transitional period by means of a non-arm’s length transaction, that person shall for the purposes of paragraph 30 be treated as having acquired that asset— |
| (i) | at the time when the person who disposed of that asset acquired that asset, and |
| (ii) | at a cost equal to the base cost of that asset in the hands of the person who disposed of it; or |
| (b) | acquired an asset during the transitional period directly or indirectly from a person who was a connected person in relation to that person at— |
| (i) | the time of that acquisition; or |
| (ii) | any time during the period from the date of that acquisition up to a subsequent disposal of that asset by that person within three years of that acquisition, |
that person shall for the purposes of paragraph 30 be treated as having acquired that asset—
| (aa) | at the time when the connected person acquired that asset, or is treated as having acquired that asset in terms of this paragraph; and |
| (bb) | at a cost equal to the base cost of that asset in the hands of that connected person, or an amount which is treated as the base cost of that asset in the hands of that connected person in terms of this paragraph; or |
| (c) | reacquired an asset within a period of ninety days after its disposal during the transitional period— |
| (i) | by means of a non-arm’s length transaction; or |
| (ii) | directly or indirectly to a connected person in relation to that person, |
that person shall for the purposes of paragraph 30 be treated as having reacquired that asset—
| (aa) | at the time when that person originally acquired that asset prior to that disposal, and |
| (bb) | at a cost equal to the base cost of that asset at the time of that disposal; or |
| (d) | acquired an asset within a period of ninety days after the disposal, during the transitional period, of a substantially similar asset that was disposed of— |
| (i) | by means of a non-arm’s length transaction; or |
| (ii) | directly or indirectly to a connected person in relation to that person, |
in order to replace the asset so disposed of, that person shall for the purposes of paragraph 30 be treated as having acquired that asset—
| (aa) | at the time when the person acquired that substantially similar asset, and |
| (bb) | at a cost equal to the base cost of that substantially similar asset at the time of the disposal. |
[Paragraph 86(2) of the Eighth Schedule substituted by section 35(1)(a) of the Revenue Laws Amendment Act, 2001 (Act No. 19 of 2001) - effective 1 October 2001]
| (3) | The provisions of this paragraph do not apply to any disposal of an asset by a fund contemplated in section 29A(4) to any other such fund in terms of section 29A(6) or (7). |
[Paragraph 86(3) of the Eighth Schedule inserted by section 112(10(b) of the Second Revenue Laws Amendment Act, 2001 (Act No. 60 of 2001)]
[Paragraph 86 of the Eighth Schedule renumbered to 97 by section 101 of the Taxation Laws Amendment Act, 2002 (Act No. 30 of 2002)]
