45. Interest on delayed refunds
(1) Where the Commissioner does not within the period of 21 business days after the date on which the vendor’s return in respect of a tax period is received by an office of the South African Revenue Service refund any amount refundable in terms of section 44, interest shall be paid on such amount at the prescribed rate (but subject to the provisions of section 45A) and calculated for the period commencing at the end of the first-mentioned period to the date of payment of the amount so refundable: Provided that-
(i) where such return made by the vendor is incomplete or defective in any material respect the said period of 21 business days shall be reckoned from the date on which-
(aa) the vendor rectifies the return and satisfies the Commissioner in writing that the incompleteness or defectiveness of the return does not affect the amount refundable; or
[Subparagraph (aa) substituted by section 101(a) of Act 30 of 1998]
(bb) information is received by the Commissioner to enable him to make an assessment upon the vendor reflecting the amount properly refundable to the vendor;
[Paragraph (i) substituted by section 43(a) of Act 27 of 1997 and amended by section 101(a) of Act 30 of 1998. Subparagraph (bb) substituted by section 101(a) of Act 30 of 1998]
(iA) where the vendor is in default in respect of any of his obligations under this Act or any other Act administered by the Commissioner, to furnish a return as required by such Act, the said period of 21 business days shall be reckoned from the date on which any such outstanding return or returns furnished by the vendor as required by such Act are received by an office of the South African Revenue Service;
[Paragraph (iA) inserted by section 43 of Act 27 of 1997 and substituted by section 101 of Act 30 of 1998 and section 169 of Act 60 of 2001]
(ii) where the Commissioner is prevented from satisfying himself as to the amount refundable in terms of section 44 by reason of not being able to gain access to the books and records of the vendor concerned after having, within a reasonable time, made a request by registered post, facsimile transmission, electronic means or personal delivery, to the vendor for access to such books and records during the period of 21 business days contemplated in this subsection, the said period of 21 business days shall be suspended from the date of despatch of such request by registered post, facsimile transmission, electronic means or the date of delivery of the personal delivery, until the date on which such access is granted;
[Paragraph (ii) substituted by section 101(b) of Act 30 of 1998 and by section 23(b) of Act 18 of 2023]
(iiA) where the vendor-
(aa) has not furnished the Commissioner with the particulars of the banking account of the enterprise; or
(bb) has not notified the Commissioner that a refund or other amount be transferred to a bank account or an account with a similar institution other than that of the vendor as contemplated in the proviso to section 44(3)(d),
the said period of 21 days shall be reckoned from the date the vendor furnishes the Commissioner with the particulars of the bank account or account with a similar institution of the enterprise or from the date the vendor has notified the Commissioner that a refund or other amount be transferred to a bank account or an account with a similar institution other than that of the vendor;
[Paragraph (iiA) inserted by section 44 of Act 61 of 2008 effective on 1 April 2009]
(iii) where the vendor is not a resident of the Republic and-
(aa) has not appointed a representative vendor as contemplated in section 48(1) in the Republic or has not furnished the Commissioner with the particulars of such representative vendor; or
(bb) has not opened a banking account in the Republic as required by paragraph (ii) (bb) of the proviso to section 23 (2) or has not furnished the Commissioner with the particulars of such banking account,
the said period of 21 business days shall be reckoned from the date the vendor furnishes the Commissioner with the particulars of such representative vendor or banking account, as the case may be.
[Paragraph (iii) added by section 43 of Act 27 of 1997]
[Subsection (1) amended by section 33 of Act 136 of 1992 and section 4 of Act 61 of 1993, substituted by section 24 of Act 20 of 1994 and amended by section 169 of Act 60 of 2001]
(2) Where the amount of any interest paid to a person in terms of subsection (1) is in excess of the current amount, the Commissioner may recover the amount of the excess under section 40(2)(a) as if it were tax payable by such person.
[Subsection (2) substituted by section 32 of Act 44 of 2014 effective on 20 January 2015. (substitution amended by section 136 of Act 23 of 2015 effective on 20 January 2015 substituted with the previous version as it was prior to the amendment by section 32 of Act 44 of 2014]
(3) The payment by the Commissioner of any interest under the provisions of this section shall be deemed to be a drawback from revenue charged to the National Revenue Fund.
[Subsection (3) added by section 19 of Act 140 of 1993 and amended by section 33 of Act 37 of 1996]