5A     Adjustments of estimates

 

(1)     The Commissioner may require a registered person to justify any estimate of the royalty payable as mentioned in section 5(1) or (2) or to furnish particulars in respect of that estimate and, if the Commissioner is dissatisfied with the amount of that estimate, the Commissioner may increase the amount of the estimate to an amount that the Commissioner considers reasonable, which increase is not subject to objection and appeal.

 

(2)     If in respect of a year of assessment a registered person does not submit an estimate by the end of the period specified in section 5(1) or (2), the Commissioner may estimate the amount of the royalty payable in respect of that year of assessment.

 

(3)     Any additional amount of royalty payable as a result of the increase or estimate referred to in subsection (1) or (2) must be paid within the period specified in a notice of assessment referred to in section 96 of the Tax Administration Act and issued in respect of that additional assessment.

 

(4)     Subject to subsection (2), if a registered person fails to submit an estimate of the royalty payable in respect of a year of assessment before the end of a period of four months after the last day of that year of assessment, that registered person is regarded as having submitted an estimate of an amount of nil royalty payable.

[Section 5A inserted by section 36(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]