Author: admin_kmos

“Dependent” definition of section 6B of ITA

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‘dependant’ means-

(a)     a person’s spouse;

(b)     a person’s child and the child of his or her spouse;

(c)     any other member of a person’s family in respect of whom he or she is liable for family care and support; or

[Paragraph (c) amended by section 6 of Act 23 of 2018 effective on 17 January 2019]

(d)     any other person who is recognised as a dependant of that person in terms of the rules of a medical scheme or fund contemplated in section 6A(2)(a) (i) or (ii),

at the time the fees contemplated in section 6A(2)(a) were paid, the amounts contemplated in paragraph (a) and (b) of the definition of ‘qualifying medical expenses’ were paid or the expenditure contemplated in paragraph (c) of that definition was incurred and paid;

“Disability” definition of section 6B of ITA

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‘disability’ means a moderate to severe limitation of any person’s ability to function or perform daily activities as a result of a physical, sensory, communication, intellectual or mental impairment, if the limitation-

 

(a)     has lasted or has a prognosis of lasting more than a year; and

 

(b)     is diagnosed by a duly registered medical practitioner in accordance with criteria prescribed by the Commissioner;

“Child” definition of section 6B of ITA

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(1)       For the purposes of this section-

 

‘child’ means a person’s child or child of his or her spouse who was alive during any portion of the year of assessment, and who on the last day of the year of assessment-

 

(a)     was unmarried and was not or would not, had he or she lived, have been-

 

(i)      over the age of 18 years;


(ii)     over the age of 21 years and was wholly or partially dependent for maintenance upon the person and has not become liable fo the payment of normal tax in respect of such year; or


(iii)    over the age of 26 years and was wholly or partially dependent for maintenance upon the person and has not become liable for the payment of normal tax in respect of such year and was a full-time student at an educational institution of a public character; or

 

(b)     in the case of any other child, was incapacitated by a disability from maintaining himself or herself and was wholly or partially dependent for maintenance upon the person and has not become liable for the payment of normal tax in respect of that year;

Section 6A (ITA) – Medical scheme fees tax credit

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6A.      Medical scheme fees tax credit

(1)     In determining the normal tax payable by any natural person there must be deducted an amount, to be known as the medical scheme fees tax credit, equal to the sum of the amounts allowed to that natural person by way of rebates under subsection (2) , subject to subsection (3A).

[Subsection (1) substituted by section 8 of Act 15 of 2016 and section 5 of Act 23 of 2018 effective on 1 March 2018, applies in respect of years of assessment commencing on or after that date]

(2)

 

(a)     The medical scheme fees tax credit applies in respect of fees paid by the  person to-

(i)      a medical scheme registered under the Medical Schemes Act; or

(ii)     a fund which is registered under any similar provision contained in the laws of any other country where the medical scheme is registered, that relate to benefits from that fund in respect of that person or of any person that is a dependant of that person.

[Subparagraph (ii) amended by section 5 of Act 23 of 2018 effective on 1 March 2018, applies in respect of years of assessment commencing on or after that date]

(b)     The amount of the medical scheme fees tax credit must be-

(i)

(aa)   R364, in respect of benefits to the person, or if the person is not a member of a medical scheme or fund in respect of benefits to a dependant who is a member of a medical scheme or fund or a dependant of a member of a medical scheme or fund;

(bb)   R728, in respect of benefits to the person, and one dependant; or

(cc)   R728, in respect of benefits to two dependants; and

[Subparagraph (i), (previously subparagraphs. (i), (ii) and part of (iii)) substituted by section 4(1) of Act 42 of 2014, by section 5(1) of Act 13 of 2015, by section 6(1) of Act 13 of 2016, by section 5(1) of Act 14 of 2017, by section 4(1) of Act 21 of 2018, by section 5(1)(c) of Act 23 of 2018, by section 4(1) of Act 22 of 2020, by section 3(1) of Act 19 of 2021, by section 3(1) of Act 19 of 2022 and by section 4(1) of Act 19 of 2023 effective on 1 March, 2023 and applicable in respect of years of assessment commencing on or after that date]

(ii)      R246, in respect of benefits to each additional dependant,

[Subparagraph (ii) (previously part of subparagraph (iii)) substituted section 4(1) of Act 21 of 2018, by section 5(1)(c) of Act 23 of 2018, by section 4(1) of Act 22 of 2020, by section 3(1) of Act 19 of 2021, by section 3(1) of Act 19 of 2022 and by section 4(1) of Act 19 of 2023 effective on 1 March, 2023 and applicable in respect of years of assessment commencing on or after that date]

for each month in that year of assessment in respect of which those fees are paid.

(3)     For the purposes of this section, any amount contemplated in subsection (2) that has been paid by-

(a)     the estate of a deceased person is deemed to have been paid by the  person on the day before his or her death; or

(b)     an employer of the person is, to the extent that the amount has been included in the income of that  person as a taxable benefit in terms of the Seventh Schedule, deemed to have been paid by that  person.

(3A)   Where more than one person pay any fees in respect of benefits to a person or dependant, the amount allowed to be deducted in respect of the medical scheme fees tax credit under subsection (1) must be an amount that bears to the total amount in respect of that person or dependant contemplated in subsection (2)(b) the same ratio as the amount of the fees paid by that person bears to the total amount of the fees payable.

[Subsection (3A) inserted by section 5 of Act 23 of 2018 effective on 1 March 2018 and applies in respect of years of assessment commencing on or after that date]

(4)     For the purposes of this section a ‘dependant’ in relation to a person means a ‘dependant’ as defined in section 6B(1).

[Subsection (4) substituted by section 5 of Act 23 of 2018 effective on 1 March 2018 and applies in respect of years of assessment commencing on or after that date]

(5)

(a)     The Minister may announce in the national annual budget contemplated in section 27(1) of the Public Finance Management Act, that, with effect from a date or dates mentioned in that announcement, the amounts allowed to a natural person by way of rebates under subsection (2) will be altered to the extent mentioned in the announcement.

(b)     If the Minister makes an announcement of an alteration contemplated in paragraph (a), that alteration comes into effect on the date or dates determined by the Minister in that announcement and continues to apply for a period of 12 months from that date or those dates subject to Parliament passing legislation giving effect to that announcement within that period of 12 months.

[Subsection (5) added by section 5 of Act 23 of 2018 and applies in respect of years of assessment commencing on or after that date]

Section 4A (ITA) – Exercise of powers and performance of duties by Minister

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4A.     Exercise of powers and performance of duties by Minister

 

The powers conferred and the duties imposed upon the Minister by or under the provisions of this Act may be exercised or performed by the Minister personally or, except for the power to issue notices or regulations, delegated by the Minister to the Director-General of the National Treasury and the Director-General may in turn delegate the powers and duties so delegated to him or her to any officer or person under his or her control, direction or supervision.

Section 3 (ITA) – Exercise of powers and performance of duties

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3.     Exercise of powers and performance of duties

 

(1)     The powers conferred and the duties imposed upon the Commissioner by or under the provisions of this Act may be exercised or performed by the Commissioner, or by any officer under the control, direction or supervision of the Commissioner.

 

(2)     ……….

 

(3)     ……….

 

(4)      Any decision of the Commissioner under the following provisions of this Act is subject to objection and appeal in accordance with Chapter 9 of the Tax Administration Act, namely-

 

(a)     the definitions of “benefit fund”, “pension fund”, “pension preservation fund”, “provident fund”, “provident preservation fund”, “retirement annuity fund” and “spouse” in section 1;

 

(b)     section 6quat(5), section 8(5)(b) and (bA), section 10(1)(cA), (e)(i)(cc), (j) and (nB), section 10A (8), section 11(e), (f), (g), (gA), (j) and (l), section 11D(20)(b), section 12B(6), section 12C, section 12E, section 12J(6), (6A) and (7), section 13, section 15, section 18A (1)(a)(cc), (b), (bA)(dd) and (c), section 22(1) and (3), section 23H (2), section 23K, section 24(2), section 24(2A), section 24A(6), section 24C, section 24D, section 24I(1) and (7), section 24J(9), section 24P, section 25A, section 27, section 28(9), section 30, section 30A, section 30B, section 30C, section 31, section 37A, section 38(2)(a) and (b) and (4), section 44(13)(a), section 47(6)(c)(i), section 62(1)(c)(iii) and (d) and (2)(a) and (4), section 80B and section 103(2);

[Paragraph (b) substituted by section 2(a) of Act 44 of 2014, by section 1 of Act 33 of 2019, by section 3 of Act 24 of 2020, by section 1 of Act 18 of 2023 and by section 2 of Act 4 of 2026]

 

(c)     paragraphs 6, 7, 9, 13, 13A, 14, 19 and 20 of the First Schedule;

 

(d)     paragraph 4 of the Second Schedule;

 

(e)     paragraphs 5(2), 14(6), 21(2) and 24 of the Fourth Schedule;

[Paragraph (e) substituted by section 2 of Act 44 of 2014 effective on 20 January 2015]

 

(f)     paragraphs 10(3), 11(2)  and 13 of the Sixth Schedule;

[Paragraph (f) substituted by section 2 of Act 44 of 2014 effective on 20 January 2015]

 

(g)     paragraphs 2(h), 3, 6(4)(b), 7(6), (7) and (8), 11 and 12A(3) of the Seventh Schedule; and

 

(h)     paragraphs (bb)(A) of the proviso to paragraph 12A(6)(e), 29(2A), 29(7), 31(2), 65(1)(d) and 66(1)(e) of the Eighth Schedule.

 

(5)     The Commissioner may, in writing, and on such conditions as may be agreed upon between the Commissioner and the Financial Sector Conduct Authority delegate to the Financial Sector Conduct Authority his or her power-

[Words preceding paragraph (a) substituted by section 2 of Act 43 of 2014 and section 2 of Act 23 of 2018 effective on 1 April 2018]

 

(a)     to approve a fund contemplated in the definition of a ‘pension fund’, ‘pension preservation fund’, ‘provident fund’, ‘provident preservation fund’ or ‘retirement annuity fund’, subject to-

 

(i)      any limitation or condition as may be determined by the Commissioner in terms of those definitions; and

 

(ii)     the compliance by any such fund with the requirements under those definitions;

[Paragraph (a) amended by section 1(b) of Act 4 of 2008, by section 5 of Act 60 of 2008 and by section 1 of Act 16 of 2016]

 

(b)     to withdraw any such approval if any of the limitations, conditions or requirements listed in paragraph (a) are not met.

 

(c)     to make a disclosure under section 69(8)(b)(i) of the Tax Administration Act.

[Subsection (5) added by section 4(b) of Act 16 of 2004 and amended by section 2(a) of Act 43 of 2014 and by section 2(1)(a) of Act 23 of 2018 deemed effective on 1 April, 2018. Paragraph (c) added by section 1 of Act 16 of 2016]

 

(6)     Any person aggrieved by a decision of the Financial Sector Conduct Authority to approve or to withdraw an approval of a fund in terms of subsection (5) must, notwithstanding section 219 of the Financial Sector Regulation Act, lodge his or her objection with the Commissioner in accordance with the provisions of Chapter 9 of the Tax Administration Act.

[Subsection (6) added by section 4 of Act 16 of 2004 and substituted by section 271 of Act 28 of 2011, section 2 of Act 43 of 2014 and section 2 of Act 23 of 2018 effective on 1 April 2018]

 

(7)     A decision by the Financial Sector Conduct Authority against which an objection has been lodged is, for the purpose of subsection (6), deemed to be a decision of the Commissioner.

[Subsection (7) added by section 4 of Act 16 of 2004 and substituted by section 2 of Act 23 of 2018 effective on 1 April 2018]

Section 2 (ITA) – Administration of Act

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2.     Administration of Act

 

(1)     The Commissioner is responsible for carrying out the provisions of this Act.

 

(2)     Administrative requirements and procedures for purposes of the performance of any duty, power or obligation or the exercise of any right in terms of this Act are, to the extent not regulated in this Act, regulated by the Tax Administration Act.