Category: CHAPTER III – General Provisions (ITA)

Section 80J (ITA) – Notice

Posted on by admin_kmos

80J.     Notice

 

(1)     The Commissioner must, prior to determining any liability of a party for tax under section 80B, give the party notice that he or she believes that the provisions of this Part may apply in respect of an arrangement and must set out in the notice his or her reasons therefor.

 

(2)     A party who receives notice in terms of subsection (1) may, within 60 days after the date of that notice or such longer period as the Commissioner may allow, submit reasons to the Commissioner why the provisions of this Part should not be applied.

 

(3)     The Commissioner must within 180 days of receipt of the reasons or the expiry of the period contemplated in subsection (2) –

 

(a)     request additional information in order to determine whether or not this Part applies in respect of an arrangement;

 

(b)     give notice to the party that the notice in terms of subsection (1) has been withdrawn; or

 

(c)     determine the liability of that party for tax in terms of this Part.

 

(4)     If at any stage after giving notice to the party in terms of subsection (1), additional information comes to the knowledge of the Commissioner, he or she may revise or modify his or her reasons for applying this Part or, if the notice has been withdrawn, give notice in terms of subsection (1).

Section 89quin (ITA) – Calculation of interest payable under this Act

Posted on by admin_kmos

89quin.     Calculation of interest payable under this Act

 

(1)     Where –

 

(a)     any interest is payable under the provisions of sections 88, 89, 89bis or 89quat;

 

(b)     the rate at which such interest is payable has with effect from any date been altered; and

 

(c)     such interest is payable in respect of any period or any number of completed months which commenced before the said date,

 

the interest to be determined in respect of that portion of such period which ended immediately before the said date or in respect of any such completed months which commenced before the said date shall be calculated as if the said rate had not been so altered.

 

(2)     The Commissioner may prescribe by notice in the Gazette that any interest payable under this Act is calculated on the daily balance owing and compounded monthly, and such method of determining interest will apply to such tax types and from such date as the Commissioner may prescribe.

Section 90 – Persons by whom normal tax payable

Posted on by admin_kmos

90.     Persons by whom normal tax payable

 

Subject to the provisions of this Act and the Tax Administration Act, any normal tax is payable by the person by whom any taxable income is received or to whom or in whose favour it accrues or who is legally entitled to the receipt thereof

 

Provided that any person may recover so much of the taxation paid by him under this Act as is due to the inclusion in –

 

(i)      his income of any income deemed to have been received by him or to be his income, as the case may be, in terms of section 7 (3), (4), (5), (6), (7) or (8), from the person entitled, whether on his own behalf or in a representative capacity, to the receipt of the income so included; or

 

(ii)     his taxable income of any capital gain in terms of paragraph 68, 69, 70, 71 or 72 of the Eighth Schedule from the person entitled, whether personally or in a representative capacity, to the proceeds on the disposal of the asset, as contemplated in the Eighth Schedule, which gave rise to the capital gain:

 

Provided further that nothing herein contained shall be construed as relieving any person required to make any payment by way of employees’ tax under the provisions of the Fourth Schedule from any liability, responsibility or duty imposed upon him by this Act.

Section 68 (ITA) – Income and capital gain of married persons and minor children

Posted on by admin_kmos

68.     Income and capital gain of married persons and minor children

 

(1)     Any –

 

(a)     income received by or accrued to or in favour of any person married in or out of community of property which in terms of section 7(2) is deemed to be income received by or accrued to such person’s spouse; or


(b)     capital gain which is in terms of paragraph 68 of the Eighth Schedule taken into account in the determination of the aggregate capital gain or aggregate capital loss of such person’s spouse,


shall be included by such spouse in returns of income required to be rendered by that spouse under this Act.

 

(2)     In the event of the death of any person during any year in respect of which such income is chargeable or in which such capital gain is taken into account, the income or capital gain of such person’s spouse for the period elapsing between the date of such death and the last day of the year of assessment shall be returned as the separate income of such spouse.

 

(3)

 

(a)     Every parent shall be required to include in his return –

 

(i)      any income received by or accrued to or in favour of any of that parent’s minor children either directly or indirectly from that parent; or


(ii)     any capital gain or capital loss in respect of any transaction entered into directly or indirectly by that parent, which is taken into account in the determination of the aggregate capital gain or aggregate capital loss of any of that parent’s minor children,


together with such particulars as may be required by the Commissioner.

 

(b)     Every parent shall be required to include in that parent’s return any income deemed to be that parent’s income in terms of subsection (3) or (4) of section 7 or any capital gain deemed to be that parent’s capital gain in terms of paragraph 69 of the Eighth Schedule.

 

69.  ……….

 

70.  ……….

 

71.  ………..

 

72.  ………..

Section 91 – Recovery of tax

Posted on by admin_kmos

91.     Recovery of tax

 

(1)     ……….

 

(2)     ……….

 

(3)     ……….

 

(4)     So much of any tax payable by any person as is due to the inclusion in his income of any income deemed to have been received by him or to be his income, as the case may be, in terms of subsection (3), (4), (5), (6), (7) or (8) of section seven, may be recovered from the assets by which the income so included was produced.

 

(4A)  So much of any tax payable by any person as is due to the inclusion in the taxable income of such person of any capital gain in terms of paragraph 68, 69, 70, 71 or 72 of the Eighth Schedule, may be recovered from the proceeds on the disposal of the asset, as contemplated in the Eighth Schedule, which gave rise to the capital gain.

 

(5)     So much of any interest payable in terms of section eighty–nine as relates to such portion of any tax as is in terms of subsection (4) recoverable from the assets referred to in that subsection may also be recovered from such assets HIA.

 

92.  ……….

 

93.  ……….

 

94.  ……….

Section 72A (ITA) – Returns relating to controlled foreign company

Posted on by admin_kmos

72A.    Return relating to controlled foreign company

 

(1)     Every resident who on the last day of the foreign tax year of a controlled foreign company or immediately before a foreign company ceases to be a controlled foreign company directly or indirectly, together with any connected person in relation to that resident, holds at least 10 per cent of the participation rights in any controlled foreign company (otherwise than indirectly through a company which is a resident), must submit to the Commissioner a return.

 

(2)     A resident must have available for submission to the Commissioner when so requested, a copy of the financial statements of the controlled foreign company for the relevant foreign tax year of that controlled foreign company.

 

(3)     Where a person in respect of any year of assessment fails to comply with the provisions of-

 

(a)     ……….

 

(b)     subsection (2) and no reasonable grounds exist either for that failure which is outside the control of the person or for that person to believe that such person was not subject to that requirement-

 

(i)      the proportional amount which must be included in the income of that person in terms of section 9D for that year shall be determined with reference only to the receipts and accruals of the controlled foreign company; and

 

(ii)     the provisions of section 6quat shall not apply in respect of any tax proved to be payable to the government of any other country with respect to the proportional amount of the net income of that controlled foreign company which is included in the income of that person in terms of section 9D.

 

73.  ……….

 

74.  ……….

 

75.  ……….

 

76.  ……….