64M.    Refund of tax in respect of dividends paid by regulated intermediaries

(1)     Notwithstanding the provisions of Chapter 13 of the Tax Administration Act, if-

(a)     an amount is withheld by a regulated intermediary from the payment of a dividend in terms of section 64H(1);

(b)     a declaration contemplated in subsection (2)(a) or (3) of that section in respect of that dividend is not submitted to the regulated intermediary by the date contemplated in the relevant subsection; and

(c)     both the declaration and the written undertaking contemplated in section 64H (2)(a) or (3) are submitted to the regulated intermediary within three years after the date of payment of the dividend in respect of which they are made,

[Paragraph (c) substituted by section 16 of Act 21 of 2012 and section 7 of Act 13 of 2017 effective on 18 December 2017]

so much of that amount as would not have been withheld had that declaration been submitted by the date contemplated in the relevant subsection is refundable to the person to whom the dividend was paid.

(1A)  If-

(a)     an amount is withheld by a regulated intermediary from the payment of a dividend in terms of section 64H(1); and

(b)     a rebate in respect of foreign taxes paid on that dividend should have been deducted from that amount in terms of section 64N,

so much of that amount as would not have been withheld had that rebate been deducted from the amount, is refundable to the person to whom the dividend was paid: Provided such rebate is claimed within three years after the date of payment of the relevant dividend.

[Words following paragraph (b) substituted by section 7 of Act 13 of 2017 effective on 18 December 2017]

(2)     Any amount that is refundable in terms of subsection (1) or (1A) to the person to whom the dividend was paid must be refunded by the regulated intermediary that withheld the amount contemplated in subsection (1)(a) or (1A)(a)-

(a)     from any amount of dividends tax withheld by the regulated intermediary within a period of one year after the submission of the declaration as contemplated in subsection (1)(c) or the claim of a rebate contemplated in subsection (1A) or

(b)     to the extent that the amount that is refundable exceeds the amount of dividends tax withheld as contemplated in paragraph (a), from an amount recovered by the regulated intermediary from the Commissioner in terms of subsection (3).

[Subsection (2) substituted by section 16(1)(c) of Act 21 of 2012 and by section 4(a) of Act 16 of 2022]

(3)     Subject to subsection (4), if any amount is refundable to any person by a regulated intermediary in terms of subsection (1) or (1A) and that amount exceeds the amount of dividends tax withheld as contemplated in subsection (2)(a), the regulated intermediary contemplated in subsection (2) may recover the excess from the Commissioner.

[Subsection (3) added by section 4(b) of Act 16 of 2022]

(4)     No amount may be recovered in terms of subsection (3) if the regulated intermediary submits the claim for recovery to the Commissioner after the expiry of a period of four years reckoned from the date of the payment contemplated in subsection (1)(a) or (1A)(a).

[Subsection (4) added by section 4(b) of Act 16 of 2022]

[Section 64M inserted by section 53(1) of Act 17 of 2009 effective on 1 April, 2012: Government Notice No. 1073 in Government Gazette 34873 of 20 December, 2011 and applicable in respect of any dividend declared and paid on or after that date (effective date in section 53(2) of Act 17 of 2009 as substituted by section 148 of Act 7 of 2010)]