Category: PART IV – Payment and recovery of tax (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 89 (ITA) – Appointment of day for payment of tax and interest on overdue payments

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89.     Appointment of day for payment of tax and interest on overdue payments

(1)     ……….

(2)     If the taxpayer fails to pay any tax in full within the period for payment notified by the Commissioner in the notice of assessment or within the period for payment prescribed by this Act, as the case may be, interest shall, unless the Commissioner having regard to the circumstances of the case grants an extension of such period and otherwise directs, be paid by the taxpayer at the prescribed rate on the outstanding balance of such tax in respect of each completed month (reckoned from the date for payment specified in the notice of assessment or the date on which the tax has become payable in terms of this Act, as the case may be) during which any portion of the tax has remained unpaid.

(3)     ……….

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

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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

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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 91 – Recovery of tax

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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.  ……….