Part V
Penalties and interest

[Part V, heading substituted by section 41(1) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date

13    . . . . . .

[Section 13 repealed by section 271 read with paragraph 189 of Schedule 1 of Act 28 of 2011]

14     Penalty for underpayment as a result of underestimation of royalty payable

(1)     If in respect of a year of assessment the royalty payable exceeds the amounts paid under sections 5(1) and (2) and 5A and that excess is greater than 20 per cent of the royalty payable, the Commissioner must impose a penalty, which is regarded as a percentage based penalty imposed under Chapter 15 of the Tax Administration Act, that may not exceed 20 per cent of that excess.

[Subsection (1) substituted by section 37(1) of Act 8 of 2010, by section 32(a) of Act 23 of 2015 and by section 42(1)(b) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]

(2)     A penalty imposed as mentioned in subsection (1) is payable within 30 days from the date on which it was imposed.

(3)     Where the Commissioner is satisfied that the estimates of the royalty payable and the amounts paid as mentioned in section 5 were seriously calculated with due regard to the factors having a bearing thereon and were not deliberately or negligently understated, or if the Commissioner is partly so satisfied, the Commissioner may remit the penalty mentioned in subsection (1) or a part thereof.

[Subsection (3) added by section 32(b) of Act 23 of 2015]

(4)     If—

(a)     a registered person is regarded under section 5A (4) as having submitted an estimate of an amount of nil royalty payable in respect of a year of assessment due to a failure to submit an estimate before the end of a period of four months after the last day of that year of assessment; and

(b)     the Commissioner is satisfied that the failure was not due to an intent to evade or postpone the payment of the royalty,

the Commissioner may remit the whole or any part of a penalty imposed under subsection (1).

[Subsection (4) added by section 42(1)(c) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]

[Section 14 amended by section 42(1)(a) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]

15     . . . . . .

[Section 15 repealed by section 43(1) of Act 16 of 2016 effective on 1 January, 2017 and applicable in respect of years of assessment commencing on or after that date]