I was re-reading s42 of the Income Tax Act. That’s the one that relates to Asset for Share swaps and noticed that it only refers to a person initially owning the asset. In this instance, however, I was checking to be sure that a new s42 company could swap its shares for the assets of two companies. Each of the two companies would then be 50% shareholders in the new company and would have effectively merged, which is what the meeting was going to be all about.

I had previously struggled with the term “person” because the s1 definition in the income Tax Act only says that it “includes” certain bodies, but is not a full definition. And it does not mention “company”.

That’s when I found the Interpretation Act of 1957 enacted “by the Queen’s Most Excellent Majesty, the Senate and the House of Assembly of the Union of South Africa”.

It starts off in s1 by saying that its provisions shall apply to the interpretation of every law (present and future), by-law, rule, regulation or order etc.

Well, that includes the Income Tax Act for sure.

Then in s2:

(x) “person” includes –

(b) any company incorporated or registered as such under any law

So, there we have it at last. The word “person” includes a company.