Section 45A: Collective investment schemes – year of assessment 2005-2006 and

45A. Collective investment schemes – year of assessment 2005-2006 and subsequent years (1) This section shall apply in respect of the year of assessment 20052006 and subsequent years. (2) Every collective investment scheme authorised under the Securities Act shall pay income tax on its chargeable income at the rate specified in the First Schedule. (3) Any gain derived by such a scheme on the realisation of any investments of the scheme shall be deemed not to be income derived by the scheme provided that at least 70 per cent of the gains is— (a) not distributed as income to the participants in the scheme; (b) appropriate to meet realised losses; or (c) applied towards a capital purpose only. (4) Any distribution to a participant in the scheme out of the net income derived by the schemes shall be deemed to be a dividend to a participant. [S. 45A inserted by s. 156 (3) (f) of Act 22 of 2005 w.e.f. 28 September 2007; amended by s. 17 (h) of Act 17 of 2007 w.e.f. 1 July 2008; s. 8 (g) of Act 37 of 2011 w.e.f. 15 December 2011.]