4. Penalty and interest on late payment of duty

[Heading substituted by section 1 of Act 32 of 2004]

[Heading of section 4 to be substituted with effect from a date determined by the President by proclamation in the Gazette]

 

(1)     If any duty in respect of any transaction entered into before 1 March 2005, remains unpaid after the date of the expiration of the period referred to in section 3, the Commissioner must in accordance with Chapter 15 of the Tax Administration Act impose a penalty, at the rate of 10 per cent per annum on the amount of the unpaid duty, calculated in respect of each completed month in the period from that date to the date of payment.

[Subsection (1) amended by section 2 of Act 70 of 1963, substituted by section 1 of Act 72 of 1970 and section 3 of Act 87 of 1982, amended by section 1 of Act 32 of 2004 and substituted by section 271 of Act 28 of 2011 effective on 1 Oct 2012]

 

(1A) If any duty in respect of any transaction entered into on or after 1 March 2005, remains unpaid after the date of the expiration of the period referred to in section 3, interest shall, subject to the provisions of subsection (3), become payable at a rate equal to 10 per cent per annum of the amount of duty which remains unpaid, calculated in respect of each completed month in the period from that date to the date of payment.

[Subsection (1) inserted by section 1 of Act 32 of 2004]

[Subsection (1A) to be deleted with effect from a date determined by the President by proclamation in the Gazette]

 

(2)     For the purpose of subsection (1) a deposit on account of duty shall be deemed to be a payment of duty.

 

(3)     Whenever the Commissioner is satisfied that the delay in the determination of the value on which the duty is payable cannot be ascribed to the person liable to pay the duty, he or she may allow a reasonable extension of time within which the duty may be paid without interest if, within six months of the date of acquisition of the property –

 

(a)     a deposit on account of the duty payable is made to the Commissioner of an amount equal to the duty calculated on the amount of the consideration paid or payable or on the declared value, as the case may be; and

(b)     application is made in writing to the Commissioner for such extension of time.

[Subsection (3) substituted by section 7 of Act 60 of 2001 and amended by section 1 of Act 32 of 2004]