A Connected person is defined in the Income Tax Act as:

means—

(a)          in relation to a natural person—

(i)           any relative; and

(ii)          any trust (other than a portfolio of a collective investment scheme) of which such natural person or such relative is a beneficiary;

(b)          in relation to a trust (other than a portfolio of a collective investment scheme)—

(i)           any beneficiary of such trust; and

(ii)          any connected person in relation to such beneficiary;

(bA)       in relation to a connected person in relation to a trust (other than a portfolio of a collective investment scheme), any other person who is a connected person in relation to such trust;

(c)          in relation to a member of any partnership or foreign partnership—

(i)           any other member; and

(ii)          any connected person in relation to any member of such partnership or foreign partnership;

(d)          in relation to a company—

(i)           any other company that would be part of the same group of companies as that company if the expression “at least 70 per cent of the equity shares in” in paragraphs (a) and (b) of the definition of “group of companies” in this section were replaced by the expression “more than 50 per cent of the equity shares or voting rights in”;

(ii)          [Paragraph (d)(ii) deleted by section 3(1)(c) of the Revenue Laws Amendment Act, 2006 (Act No. 20 of 2006)];

(iii)         [Paragraph (d)(iii) deleted by section 3(1)(c) of the Revenue Laws Amendment Act, 2006 (Act No. 20 of 2006)];

(iv)         any person, other than a company as defined in section 1 of the Companies Act that individually or jointly with any connected person in relation to that person, holds, directly or indirectly, at least 20 per cent of—

(aa)        the equity shares in the company; or

(bb)       the voting rights in the company;

(v)          any other company if at least 20 per cent of the equity shares or voting rights in the company are held by that other company, and no holder of shares holds the majority voting rights in that company;

(vA)        any other company if such other company is managed or controlled by—

(aa)        any person who or which is a connected person in relation to such company; or

(bb)       any person who or which is a connected person in relation to a person contemplated in item (aa); and

(vi)         where such company is a close corporation—

(aa)        any member;

(bb)       any relative of such member or any trust (other than a portfolio of a collective investment scheme) which is a connected person in relation to such member; and

(cc)        any other close corporation or company which is a connected person in relation to—

(i)           any member contemplated in item (aa); or

(ii)          the relative or trust contemplated in item (bb); and

(e)          in relation to any person who is a connected person in relation to any other person in terms of the foregoing provisions of this definition, such other person;

Provided that for the purposes of this definition, a company includes a portfolio of a collective investment scheme;

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