Category: Paragraph 12A (Seventh Schedule) – Contribution to benefit fund

Paragraph 12A

 

  1. Subparagraph (1) substituted by section 59 of Act 31 of 2005, amended by section 2 of Act 8 of 2007, section 1 of Act 3 of 2008, section 59 of Act 8 of 2007 and substituted by section 66 of Act 17 of 2009 effective on 1 March 2010 and section 122 of Act 31 of 2013 effective on 12 December 2013.

 

  1. Subparagraph (2) substituted by section 59 of Act 31 of 2005.

 

  1. Subparagraph (3) substituted by section 59 of Act 31 of 2005.

 

  1. Subparagraph (4) deleted by section 271 of Act 28 of 2011 effective on 1 October 2012.

 

  1. Item (5)(d) added by section 59 of Act 31 of 2005 and deleted by section 105 of Act 24 of 2011 effective on 1 March 2012.

 

  1. Paragraph 12A inserted by section 56 of Act 30 of 1998.

Paragraph 12A (Seventh Schedule) – Contribution to benefit fund

Posted on by admin_kmos

12A.     CONTRIBUTION TO BENEFIT FUND

(1)     The cash equivalent of the value of the taxable benefit contemplated in paragraph 2(i) is the amount of any contribution or payment made by the employer in respect of a year of assessment, directly or indirectly, to any medical scheme registered under the Medical Schemes Act or to any fund which is registered under any similar provision contained in the laws of any other country where the medical scheme is registered, for the benefit of any employee or dependants, as defined in that Act, of that employee.

(2)     Where any contribution or payment made by an employer contemplated in subparagraph (1) is made in such a manner that an appropriate portion thereof cannot be attributed to the relevant employee or his or her dependants, the amount of that contribution or payment in relation to that employee and his or her dependants is deemed, for purposes of subparagraph (1), to be an amount equal to the total contribution or payment by the employer to the fund during the relevant period for the benefit of all employees and their dependants divided by the number of employees in respect of whom the contribution or payment is made.

(3)     If the apportionment of the contribution or payment amongst all employees in accordance with subparagraph (2) does not reasonably represent a fair apportionment of that contribution or payment amongst the employees, the Commissioner may, on application by the taxpayer, decide that the apportionment be made in such other manner as is fair and reasonable.

[Subparagraph (3) substituted by section 59 of Act 31 of 2005 and section 100 of Act 25 of 2015 effective on 8 January 2016]

(4)     ……….

(5)     No value shall be placed in terms of this paragraph on the taxable benefit derived from an employer by –

(a)     a person who by reason of superannuation, ill–health or other infirmity retired from the employ of such employer; or

(b)     the dependants of a person after such person’s death, if such person was in the employ of such employer on the date of death; or

(c)     the dependants of a person after such person’s death, if such person retired from the employ of such employer by reason of superannuation, ill–health or other infirmity.