| 2) | For purposes of Chapter I of the Act- |
| a) | a donor includes a person at whose instance a donation was made by any other person; and |
| b) | a donation includes a deemed donation as contemplated in section 58 of the Income Tax Act, 1962. |
| 3) | For the purposes of section 4(2)(a) of the Act, the reference to any, foreign asset of a discretionary trust which was acquired by way of a donation made by the donor contemplated in that section, includes any asset of the discretionary trust the value of which is wholly or partly derived from any donation made by the donor. |
| 4) | Where a person has made an election in terms of section 4(1) of the Act in relation to a foreign asset of a discretionary trust, that person must, for purposes of the determination of any income or any capital gain or capital loss from the disposal of that foreign asset, be deemed- |
| a) | to have acquired that foreign asset for an amount equal to the sum of the market value of that asset as at 1 March 2002 and any subsequent expenditure incurred by that discretionary trust in respect of that foreign asset; |
| b) | to deal with that foreign asset in the same manner as is dealt with by that discretionary trust from 28 February 2003; and |
| c) | to hold that foreign asset in terms of section 4(1) until the earlier date of either when- |
| i) | that foreign asset-is disposed of by that discretionary trust; |
| ii) | that person dies or ceases to be a resident of the Republic; or |
| iii) | in the case of a deceased estate, close corporation or trust, that person ceases to exist by operation of law. |
| 5) | Any election by a person in terms of section 4(1) of the Act, is deemed for purposes of section 4(2)(c) of the Act to have been made by that person on 28 February 2003. |
| 6) | Where a person is in terms of section 4(1) of the Act deemed to hold any foreign asset of a discretionary trust, which was acquired by that discretionary trust by way of a donation made by that person after the date that the asset was accumulated as or converted to a foreign asset, that donation must, for purposes of section 17(l)(b) of the Act, be deemed to have been made before the date of that accumulation or conversion. |
| 7) | For the purposes of section 4(3)(b) of the Act- |
| a) | sections 7(5), 7(8) and 25B of the Income Tax Act, 1962, and paragraphs 70, 72 and 80 of the Eighth Schedule to the Income Tax Act, 1962, do not apply in respect of- |
| i) | any income received or accrued or expenditure incurred by a trust relating to a foreign asset; or |
| ii) | any capital gain determined by a trust in respect of the disposal of a foreign asset, |
during the period that the foreign asset is deemed to be held by the donor in terms of section 4(1) of the Act; and
| b) | any income received or accrued or expenditure incurred by a trust before 1 March 2002 in respect of a foreign asset is deemed to have been received or accrued or incurred, as the case may be, during the period that the foreign asset is so deemed to be held by that person. |
