For the purposes of this section—
a) ‘small business corporation’ means any close corporation, co-operative or company registered as a private company in terms of the Companies Act, 1973 (Act No. 61 of 1973), all the shareholders of which are at all times during the year of assessment natural persons, where—
i) the gross income for the year of assessment does not exceed an amount equal to R14 million: Provided that where the close corporation or company during the relevant year of assessment carries on any trade, for purposes of which any asset contemplated in this section is used, for a period which is less than 12 months, that amount shall be reduced to an amount which bears to that amount, the same ratio as the number of months (in the determination of which a part of a month shall be reckoned as a full month). during which that company or close corporation carried on that trade bears to 12 months:
ii) none of the shareholders or members at any time during the year of assessment of the company, close corporation or co-operative holds any shares or has any interest in the equity of any other company as defined in section 1 (other than-
aa) a company contemplated in paragraph (a) of the definition of ‘listed company’; or
bb) any portfolio in a collective investment scheme contemplated in paragraph (e) of the definition of ‘company’);
cc) a company contemplated in section 10(1)(e)(i), (ii) or (iii);
dd) less than 5 per cent of the interest in a social or consumer co-operative or a co-operative burial society as defined in section 1 of the Co-operatives Act, 2005 (Act No. 14 of 2005), or any other similar co-operative if all of the income derived from the trade of that co-operative during any year of assessment is solely derived from its members;
ee) any friendly society as defined in section 1 of the Friendly Societies Act, 1956 (Act No. 25 of 1956);
ff) less than 5 per cent of the interest in a primary savings co-operative bank or a primary savings and loans co-operative bank as defined in the Co-operative Banks Act, 2007, that may provide, participate in or undertake only the following—
A) in the case of a primary savings co-operative bank, banking services contemplated in section 14(1)(a) to (d) of that Act;
and
B) in the case of a primary savings and loans co-operative bank, banking services contemplated in section 14(2)(a) or (b) of that Act; or
gg) a venture capital company as defined in section 12J;
hh) any company, close corporation or co-operative if the company, close corporation or co-operative—
A) has not during any year of assessment carried on any trade; and
B) has not during any year of assessment owned assets, the total market value of which exceeds R5 000;
iii) not more than 20 percent of the total of all receipts and accruals (other than those of a capital nature) and all the capital gains of the company, close corporation or co-operative consists collectively of investment income and income from the rendering of a personal service; and
iv) such company is not a personal service provider as defined in the Fourth Schedule;
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