Category: Paragraph 19 (Fourth Schedule) – Estimates of taxable income to be made by provisional taxpayers

Paragraph 19

 

  1. Item (1)(a) substituted by section 54 of Act 31 of 2005, section 271 of Act 28 of 2011 effective on 1 October 2012 and section 22 of Act 21 of 2012

 

  1. effective on 20 December 20112.

 

  1. Item (1)(b) substituted by section 49 of Act 94 of 1983 and section 271 of Act 28 of 2011 effective on 1 October 2012.

 

  1. Item (1)(c) substituted by section 49 of Act 94 of 1983 and section 271 of Act 28 of 2011 effective on 1 October 2012

 

  1. Words preceding item (1)(d)(i) substituted by section 18 of Act 61 of 2008.

 

  1. Item (1)(d)(i)(aa) amended by section 46 of Act 3 of 2008 and section 13 of Act 39 of 2013 effective on 1 March 2012.

 

  1. Item (1)(d)(i)(bb) amended by section 46 of Act 3 of 2008 and substituted by section 271 of Act 28 of 2011 effective on 1 October 2012 and section 13 of Act 39 of 2013 effective on 1 March 2012.

 

  1. Item (1)(d)(i)(cc) added by section 46 of Act 3 of 2008 and deleted by section 13 of Act 39 of 2013 effective on 1 March 2012.

 

  1. Subitem (1)(d)(i) substituted by section 37 of Act 5 of 2001 and section 54 of Act 31 of 2005.

 

  1. Subitem (1)(d)(ii) substituted by section 49 of Act 94 of 1983 and section 37 of Act 5 of 2001.

 

  1. Subitem (1)(d)(iii) deleted by section 49 of Act 94 of 1983, added by section 52 of Act 101 of 1990 and deleted by section 44 of Act 21 of 1995.

 

  1. Proviso to subparagraph 1 added by section 23 of Act 18 of 2009 and substituted by section 271 of Act 28 of 2011 effective on 1 October 2012.

 

  1. Subitem (1)(e)(ii) amended by section 52 of Act 101 of 1990, section 87 of Act 45 of 2003 and section 271 of Act 28 of 2011 effective on 1 October 2012.

 

  1. Subparagraph (1) substituted by section 28 of Act 88 of 1965, section 46 of Act 89 of 1969 and section 50 of Act 85 of 1974.

 

  1. Subparagraph (1A) inserted by section 43 of Act 88 of 1971 and deleted by section 49 of Act 94 of 1983.

 

  1. Subparagraph (2) substituted by section 50 of Act 85 of 1974 and section 271 of Act 28 of 2011 effective on 1 October 2012.

 

  1. Subparagraph (3) substituted by section 271 of Act 28 of 2011 effective on 1 October 2012.

 

  1. Subparagraph (4) deleted by section 50 of Act 85 of 1974.

Paragraph 19 (Fourth Schedule) – Estimates of taxable income to be made by provisional taxpayers

Posted on by admin_kmos

19.     ESTIMATES OF TAXABLE INCOME TO BE MADE BY PROVISIONAL TAXPAYERS

(1)

(a)     Every provisional taxpayer (other than a company) shall, during every period within which provisional tax is or may be payable by that provisional taxpayer as provided in this Part, submit to the Commissioner (unless the Commissioner directs otherwise) a return of an estimate of the total taxable income which will be derived by the taxpayer in respect of the year of assessment in respect of which provisional tax is or may be payable by the taxpayer: Provided that-

(i)      such estimate will not include any retirement fund lump sum benefit, retirement fund lump sum withdrawal benefit or any severance benefit received by or accrued to or to be received by or accrue to the taxpayer during the relevant year of assessment; and

(ii)     in respect of the year of assessment in which a person dies, no estimate is required to be made in respect of the period ending on the date of death of that person.

[Item (a) substituted by section 54(1)(a) of Act 31 of 2005, by section 271 read with paragraph 90(a) of Sch. 1 of Act 28 of 2011, by section 22 of Act 21 of 2012 and by section 16(a) of Act 23 of 2015 and amended by section 10 of Act 33 of 2019]

(b)     Every company which is a provisional taxpayer shall, during every period within which provisional tax is or may be payable by it as provided in this Part submit to the Commissioner (unless the Commissioner directs otherwise) a return of an estimate of the total taxable income which will be derived by the company in respect of the year of assessment in respect of which provisional tax is or may be payable by the company.

[Item (b) substituted by section 49 of Act 94 of 1983, section 271 of Act 28 of 2011 effective on 1 October 2012 and section 16 of Act 23 of 2015 effective on 8 January 2016]

(c)     The amount of any estimate so submitted by a provisional taxpayer (other than a company) during the period referred to in paragraph 21(1)(a), or by a company (as a provisional taxpayer) during the period referred to in paragraph 23(a), shall not be less than the basic amount applicable to the estimate in question, as contemplated in item (d) , unless the circumstances of the case justify the submission of an estimate of a lower amount.

[Item (c) substituted by section 49 of Act 94 of 1983, section 271 of Act 28 of 2011 effective on 1 October 2012 and section 16 of Act 23 of 2015 effective on 8 January 2016]

 

(d)     The basic amount applicable to any estimate submitted by a provisional taxpayer under this paragraph shall, for the purposes of this paragraph, be deemed to be-

 

(i)      as respects an estimate submitted by a provisional taxpayer (other than a company) under item (a), the taxpayers’ taxable income, as assessed by the Commissioner, for the latest preceding year of assessment in relation to such estimate, less –

 

(aa)    the amount of any taxable capital gain contemplated in section 26A;

[Item (aa) amended by section 46 of Act 3 of 2008 and section 13 of Act 39 of 2013 and substituted by section 9 of Act 44 of 2014 effective on 1 March 2015]

(bb)   the taxable portion of any retirement fund lump sum benefit, retirement fund lump sum withdrawal benefit or severance benefit (other than any amount contemplated in paragraph (eA) of the definition of ‘gross income’ in section 1); and

[Item (bb) amended by section 46 of Act 3 of 2008 and substituted by section 271 of Act 28 of 2011, section 13 of Act 39 of 2013 and section 9 of Act 44 of 2014 effective on 1 March 2015]

(bbA) any amount (other than a severance benefit) contemplated in paragraph (d) of the definition of ‘gross income’ in section 1,

[Item (bbA) added by section 9 of Act 44 of 2014 effective on1 March 2015]

included in the taxpayer’s taxable income for that year of assessment;

[Words following item (bbA) added by section 9 of Act 44 of 2014 effective on 1 March 2015]

 

(ii)     as respects an estimate submitted by a company under item (b), the company’s taxable income, as assessed by the Commissioner, for the latest preceding year of assessment in relation to such estimate, less the amount of any taxable capital gain included therein in terms of section 26A.

 

: Provided that, if an estimate under item (a) or (b) must be made  more than 18 months after the end of the latest preceding year of assessment in relation to such estimate, the basic amount determined in terms of subitems (i) and (ii) shall be increased by an amount equal to eight per cent per annum of that amount, from the end of such year to the end of the year of assessment in respect of which the estimate is made.

[Proviso to item (d) added by section 23 of Act 18 of 2009 and substituted by section 271 of Act 28 of 2011 and section 9 of Act 44 of 2014 effective on 1 March 2015]

(e)     For the purposes of item (d), the latest preceding year of assessment in relation to any estimate under this paragraph shall be deemed to be the latest of the years of assessment –

 

(i)      preceding the year of assessment in respect of which the estimate is made; and

 

(ii)     in respect of which a notice of assessment relevant to the estimate has been issued by the Commissioner not less than 14 days before the date on which the estimate is submitted to the Commissioner.

[Subitem (ii) amended by section 52 of Act 101 of 1990, section 87 of Act 45 of 2003, section 271 of Act 28 of 2011 and section 9 of Act 44 of 2014 effective on 1 March 2015]

(2)     If any provisional taxpayer fails to submit any estimate as required by subparagraph (1), the Commissioner may estimate the taxable income which is required to be estimated.

(3)     The Commissioner may call upon any provisional taxpayer to justify any estimate made by the provisional taxpayer in terms of sub-paragraph (1), or to furnish particulars of  the provisional taxpayer’s income and expenditure or any other particulars that may be required, and, if the Commissioner is dissatisfied with the said estimate, he or she may increase the amount thereof to such amount as he or she considers reasonable, which increase of the estimate is not subject to objection and appeal.

[Subparagraph (3) substituted by section 271 of Act 28 of 2011 effective on 1 October 2012 and section 16 of Act 23 of 2015 effective on 8 January 2016]

(4)          ……….

(5)     Any estimate or increase made by the Commissioner under the provisions of sub-paragraph (2) or (3) shall be deemed to take effect in respect of the relevant period within which the provisional taxpayer is required to make any payment of provisional tax in terms of this Part.

[Subparagraph (5) substituted by section 16 of Act 23 of 2015 effective on 8 January 2016]

(6)     Subject to subparagraph (2), if an estimate of a provisional taxpayer’s taxable income in respect of any year of assessment is not submitted in terms of subparagraph (1)(a) or (b) by the last day of a period of four months after the last day of the year of assessment, the provisional taxpayer shall, for the purposes of this paragraph and paragraph 20, be deemed to have submitted an estimate of an amount of nil taxable income.

[Sub-paragraph (6) added by section 12 of Act 16 of 2016]