S.L. 123.27 Art. 4Gainsderivedfrom the transfer of assetsreferredto article5(1)(a)(ii)of the Act.

(1) Subject to the other provisions of these rules, in computing the gains or profits on the transfer of any asset to which in article 5(1)(a)(ii) of the Act applies, there shall be taken into account the cost of acquisition of that asset.

(2) Without prejudice to the generality of rule 3, in the case of a transfer of intellectual property or intellectual property rights, the cost of acquisition shall not include any amount in respect of which a deduction has been claimed in terms of article 14(1)(m) of the Act.

(3) When the said asset was acquired or by means causa mortis of a donation, the cost of acquisition shall be deemed to be an amount equal to the price which that asset would have fetched had it been sold on the open market on the date of that acquisition. However, where a notice was given to the Commissioner for the purposes of the Duty on Documents and Transfers Act in respect of that acquisition and the value declared in that notice was lower than the said price, the cost of acquisition shall be deemed to be equivalent to the value so declared.