Category: CHAPTER III – General Provisions (ITA)

Subsection 2 to 6 of section 89quat of ITA

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(2)     If the taxable income of any provisional taxpayer as finally determined for any year of assessment exceeds –

(a)     R20 000 in the case of a company; or

 

(b)     R50 000 in the case of any person other than a company,

 

and the normal tax payable by him in respect of such taxable income exceeds the credit amount in relation to such year, interest shall, subject to the provisions of subsection (3), be payable by the taxpayer at the prescribed rate on the amount by which such normal tax exceeds the credit amount, such interest being calculated from the effective date in relation to the said year until the date of assessment of such normal tax.

(3)     Where the Commissioner having regard to the circumstances of the case is satisfied that the interest payable in terms of subsection (2) is a result of circumstances beyond the control of the taxpayer, the Commissioner may direct that interest shall not be paid in whole or in part by the taxpayer.

(3A)  Where any natural person has, in respect of the year of assessment during which he for the first time became a provisional taxpayer, become liable for the payment of interest under subsection (2), the Commissioner may, subject to the provisions of section 103(6), if he is satisfied that the circumstances warrant such action, direct that interest shall not be paid by such person in respect of such year of assessment.

(4)     If in the case of any provisional taxpayer the credit amount in relation to any year of assessment exceeds the normal tax payable in respect of his taxable income as finally determined for that year and –

(a)     the amount of that excess exceeds R10 000; or

 

(b)     such taxable income exceeds –

 

(i)      R20 000 in the case of a company; or

 

(ii)     R50 000 in the case of any person other than a company,

 

interest shall be payable to the taxpayer at the prescribed rate on the difference between the credit amount and such normal tax, such interest being calculated from the effective date in relation to the said year until the date on which such difference is refunded to the taxpayer: Provided that where any interest is payable to the taxpayer on any amount in respect of any period in terms of the provisions of section 88, no interest shall be payable to the taxpayer in terms of the provisions of this subsection in respect of the said amount and period.

(5)     ……….

(6)     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.

“Effective date” definition of section 89quat of ITA

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“effective date”, in relation to any year of assessment of a provisional taxpayer, means –

 

(a)     where the provisional taxpayer is a company which has a year of assessment which ends on the last day of February or is a person (other than a company) who has not been granted permission by the Commissioner under the provisions of section 66(13A) to render accounts for a period ending on a date other than the last day of February, the date falling seven months after the last day of such year; or

 

(b)     in any other case, the date falling six months after the last day of such year as applicable for the purposes of the provisions of paragraph 21 or 23 of the Fourth Schedule;

“Credit amount” definition of section 89quat of ITA

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“credit amount”, in relation to any year of assessment of any provisional taxpayer, means the sum of –

 

(a)     the provisional tax paid by the taxpayer under the provisions of paragraph 21, or 23 of the Fourth Schedule in respect of such year;

 

(b)     any additional provisional tax paid by the taxpayer in respect of such year under the provisions of paragraph 23A of that Schedule;

 

(c)     any amounts of employees tax deducted or withheld by the taxpayer’s employer during such year; and

 

(d)     any amount of foreign taxes which may be deducted from the tax payable by such taxpayer in respect of the relevant year of assessment in terms of the provisions of section 6quat;

Section 80F (ITA) – Treatment of connected persons and accommodating or tax-indifferent parties

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80F.     Treatment of connected persons and accommodating or tax-indifferent parties

 

For the purposes of applying section 80C or determining whether or not a tax benefit exists for purposes of this Part, the Commissioner may –

 

(a)     treat parties who are connected persons in relation to each other as one and the same person; or

 

(b)     disregard any accommodating or tax-indifferent party or treat any accommodating or tax-indifferent party and any other party as one and the same person.

Section 80G (ITA) – Presumption of purpose

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80G.    Presumption of purpose

 

(1)     An avoidance arrangement is presumed to have been entered into or carried out for the sole or main purpose of obtaining a tax benefit unless and until the party obtaining a tax benefit proves that, reasonably considered in light of the relevant facts and circumstances, obtaining a tax benefit was not the sole or main purpose of the avoidance arrangement.

 

(2)     The purpose of a step in or part of an avoidance arrangement may be different from a purpose attributable to the avoidance arrangement as a whole.

Section 66 (ITA) – Notice by Commissioner requiring returns for assessment of normal tax under this Act

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66.     Notice by Commissioner requiring returns for assessment of normal tax under this Act

(1)     The Commissioner must annually give public notice of the persons who are required by the Commissioner to furnish returns for the assessment of normal tax within the period prescribed in that notice.

(2)    ……….

(3)     ……….

(4)     The Commissioner may, prior to the issue of any such annual notice, require any person by notice in writing to render interim returns for any period he may designate in such notice, and may proceed to make an assessment in respect of that period.

(5)       ……….

(5A)  Any person who is not in terms of this section required to furnish a return in respect of any year of assessment may for the purpose of having that person’s liability for normal tax determined on assessment furnish such a return within three years after the end of such year of assessment.

(6)     ……….

(7)     ……….

(8)     ……….

(9)     ……….

(10)   ……….

(11)   ……….

(12)   ……….

(13)   The return for normal tax to be made by any person in respect of any year of assessment shall be a return –

(a)     in the case of a person (other than a company), for the whole period of twelve months ending upon the last day of February: Provided that where-

(i)      a person dies, a return shall be made for the period commencing on the first day of that period and ending on the date of death;

(ii)     the estate of a person is sequestrated, separate returns must be made for the periods-

(aa)   commencing on the first day of that period and ending on the date preceding the date of sequestration; and

(bb)   commencing on the date of sequestration and ending on the last day of that period; or

(iii)     a person ceases to be a resident, a return shall be made for the period commencing on the first day of that period and ending on the day preceding the date that the person ceases to be a resident; or.

[Paragraph (a) amended by section 61 of Act 45 of 2003 and section 271 of Act 28 of 2011 and substituted by section 2 of Act 22 of 2018 effective on 17 January 2019]


(b)     in the case of a company, for the whole period of the relevant financial year of that company comprising the year of assessment.


: Provided that where a company ceases to be a resident, a return shall be made for the period commencing on the first day of that financial year and ending on the day preceding the date that the company ceases to be a resident.

(13A) Where –

(a)     it is established to the satisfaction of the Commissioner that the whole or any portion of the income of any person to whom the provisions of subsection (13)(a) apply cannot be conveniently returned for any year of assessment, the Commissioner may, subject to such conditions as he or she may impose, accept accounts in respect of the whole or a portion of the taxpayer’s income drawn to a date agreed to by the Commissioner, whether for a longer or shorter period than the year of assessment under charge, and the income disclosed in any such accounts must be deemed to be income of that person in respect of that year under charge;


(b)     any such accounts are drawn to a date later than the last day of the year of assessment, no further regard shall be had to the income disclosed by those accounts for purposes of any subsequent year of assessment;


(c)     any such accounts are drawn to a date falling within the year of assessment and the person concerned dies or his or her estate is sequestrated during the interim period between that date and the last day of the year of assessment, any income received by or accrued to that person during that interim period must be deemed to be part of that person’s income for the year of assessment.

(13B) For the purposes of subsections (13A) and (13C), the word ‘income’ must be construed as including any aggregate capital gain or aggregate capital loss.

(13C) Where –

(a)     a company does not close its accounts on the last day of its financial year, the Commissioner may accept accounts in respect of the taxpayer’s income drawn to a fixed day approved by the Commissioner, which day shall fall within 10 days before or after the last day of the financial year;


(b)     such accounts are drawn to a date later than the last day of the year of assessment, no further regard shall be had to the income disclosed by those accounts for purposes of a subsequent year of assessment.