Section 11 (Estate Duty Act) – Person liable for duty

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11. Person liable for duty

 

The person liable for the duty shall be –

 

(a)     where duty is levied on property of the deceased which falls under subsection (2) of section 3 –

 

(i)      as to any property referred to in paragraph (a) or (b) of that subsection, the person to whom any advantage accrues by the death of the deceased;

(ii)     as to any other property, the executor;

 

(b)     where duty is levied on property which, in accordance with subsection (3) of section 3, is deemed to be property of the deceased –

 

(i)      as to property referred to in paragraph (a) of that subsection, the executor: Provided that where the amount due under the policy is recoverable by any person other than the executor, the person liable for the duty shall be the person entitled to recover the amount due under the policy;

(iA)   ……….

[Subparagraph (iA) inserted by section 3 of Act 56 of 66 and deleted by section 3 of Act 15 of 2016 effective on 1 January 2009 and applies in respect of the estate of a person who dies on or after that date]

 

(ii)     as to any property referred to in paragraph (b) of that subsection, the donee;

[Subparagraph (ii) substituted by section 13 of Act 87 of 1988 and section 3 of Act 37 of 1995]

(iii)    as to any property referred to in paragraph (cA) or (d) of that subsection, the executor.

[Subparagraph (iii) substituted by section 3 of Act 37 of 1995]

Section 12 (Estate Duty Act) – Duty payable by executor

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12. Duty payable by executor

 

Notwithstanding anything to the contrary contained in section 11, any duty payable under this Act shall be payable by and recoverable from the executor of the estate subject to the duty, to the extent contemplated in Chapters 10 and 11 of the Tax Administration Act.

[Section 12 amended by section 4 of Act 18 of 2009 and substituted by section 271 of Act 28 of 2011 effective on 1 October 2012]

Section 13 (Estate Duty Act) – Right of recovery by executor

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13. Right of recovery by executor

(1)     Every executor who is required to pay duty in respect of any property referred to in paragraph (a)(i), or in the proviso to paragraph (b)(i), or in paragraph (b)(ii), of section 11, shall be entitled to recover from the person liable therefor the duty attributable to such property.

[Subsection (1) substituted by section 7(1)(a) of Act 92 of 1971 and by section 3 of Act 20 of 2021]

(2)     The duty attributable to any such property shall be a sum which bears to the full duty payable in respect of the estate (before the deduction in accordance with the provisions of section 16 of any amount in respect of transfer duty or donations tax) the same ratio as that portion of the net value of the estate (as determined under section 4) which is attributable to the inclusion in the estate of the value of the said property, bears to the net value of the estate as so determined, reduced, in any case in which there is, in accordance with the said section 16, deducted from the duty payable in respect of the estate, any amount of transfer duty or donations tax paid in respect of any property included in the estate which has accrued to the person liable for the duty attributable to that property, by the amount of the transfer duty or donations tax so paid.

[Subsection (2) substituted by section 7 of Act 92 of 1971]

(3)     Whenever duty is in terms of section 11(b)(i) payable by more than one person on the value of any property referred to in section 3(3)(a), the amount of duty payable by each such person shall be such proportion of the total duty attributable to the total value of the said property, as bears to the said total duty the same ratio as so much of the amount which such person is entitled to recover under any policy as is included in the estate under section 3 (3) (a), bears to the total value of the said property.

[Subsection (3) substituted by section 14 of Act 87 of 1988]

Section 14 (Estate Duty Act) – Right to mortgage property

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14. Right to mortgage property

To provide for the payment of any duty, the person liable therefor may, with the consent of the Master, borrow any moneys or mortgage any property in respect of which the liability for duty arises, notwithstanding any provision to the contrary contained in any deed or testamentary disposition or in any law.

Section 15 (Estate Duty Act) – Recovery of duty paid in certain cases

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15. Recovery of duty paid in certain cases

 

Any person who has disposed of property in respect of which a liability for duty in accordance with sub-paragraph (ii) of paragraph (b) of section 11, thereafter arises, without having received full consideration therefor, may recover from the person to whom he has disposed of such property the amount of duty payable by him in respect thereof.

Section 16 (Estate Duty Act) – Deduction of transfer duty and donations tax

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16. Deduction of transfer duty and donations tax

There shall be deducted from any duty payable under this Act –

(a)     any transfer duty which is proved to the satisfaction of the Commissioner to have been paid in respect of the acquisition from the deceased or his estate of any property included in the estate for the purposes of the assessment of duty, by any person liable for the duty attributable to that property;

(b)          ……….

[Paragraph (b) amended by section 11 of Act 77 of 1964 and deleted by section 15 of Act 87 of 1988]

(c)     without in any way modifying or adding to the rights of any person under an agreement entered into by the Government of the Republic with the Government of any other country or territory relating to the prevention of or relief from double taxation in respect of estate duty, any amount of any death duties proved to the satisfaction of the Commissioner to have been paid to any other State in respect of any property situate outside the Republic and included in the estate of any person who at the date of his death was ordinarily resident in the Republic: Provided that the deduction under this paragraph shall not exceed the duty imposed on such property by this Act.

[Paragraph (c) added by section 5 of Act 65 of 1960]

Section 18 (Estate Duty Act) – No property to be delivered by executor before duty provided for

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18. No property to be delivered by executor before duty provided for

Before delivering or transferring any property of the deceased to any heir or legatee the executor shall satisfy the Commissioner that due provision has been made for the payment of any duty payable under this Act.

19. ……….

Section 20 (Estate Duty Act) – Expenditure incurred by executor

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20. Expenditure incurred by executor

 

Every executor who is required to incur any expenditure in respect of any property which falls under paragraph (a) or (b) of subsection (2) or under subsection (3) of section 3, shall be entitled to recover such expenditure from the person liable, in accordance with section eleven, for the duty payable in respect of such property.

 

21. ……….

[Section 21 repealed by section 8 of Act 81 of 1985]

 

22. ……….

[Section 22 repealed by section 8 of Act 81 of 1985]

 

23. …………

[Section 23 amended by section 6 of Act 81 of 1965, substituted by s 10 of Act 30 of 2000 and repealed by section 271 of Act 28 of 2011 effective on 1 October 2012]

24. ………….

[Section 24 amended by section 17 of Act 59 of 1956, section 5 of Act 59 of 1957 and section 11 of Act 71 of 1961, substituted by section 15 of Act 77 of 1962, amended by section 12 of Act 77 of 1964, section 2 of Act 104 of 1976, section 8 of Act 86 of 1987, section 10 of Act 97 of 1993, section 8 of Act 27 of 1997 and section 9 of Act 53 of 1999, substituted by section 15 of Act 60 of 2001 amended by section 11 of Act 45 of 2003 and repealed by section 271 of Act 28 of 2011 effective on 1 October 2012]

 

25. ………….

[Section 25 amended by section 16 of Act 77 of 1962, substituted by section 9 of Act 86 of 1987, amended by section 11 of Act 97 of 1993 and repealed by section 271 of Act 28 of 2011 effective on 1 October 2012]

Section 26 (Estate Duty Act) – Prevention of, or relief from double taxation

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26. Prevention of, or relief from double taxation

 

(1)     The National Executive may enter into an agreement with the Government of any other country, whereby arrangements are made with such Government with a view to the prevention, mitigation or discontinuance of the levying, under the laws of the Republic and of such other country, of estate duty in respect of the same property or to the rendering of reciprocal assistance in the administration of, and in the collection of estate duty under the laws relating to estate duty in force in the Republic and in such other country.

[Subsection (1) substituted by section 9 of Act 27 of 1997]

 

(2)     As soon as may be after the approval of Parliament of any such agreement, as contemplated in section 231 of the Constitution, the arrangements thereby made shall be notified by publication in the Gazette and the arrangements so notified shall thereupon have effect as if enacted in this Act.

[Subsection (2) amended by section 13 of Act 77 of 1964 and substituted by section 9 of Act 27 of 1997]

 

(3)     ……….

[Subsection (3) amended by section 5 of Act 99 of 1981 and deleted by section 9 of Act 27 of 1997]

 

(4)     ……….

[Subsection (4) deleted by section 9 of Act 27 of 1997]

 

(5)     ……….

[Subsection (5) amended by section 5 of Act 99 of 1981 and deleted by section 9 of Act 27 of 1997]

 

27. ……….

[Section 27 amended by section 10 of Act 27 of 1997 and repealed by section 271 of Act 28 of 2011 effective on 1 October 2012]

Section 29 (Estate Duty Act) – Regulations

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29. Regulations

 

The Minister of Finance may make regulations for the better carrying out of the objects and purposes of this Act, including regulations as to the valuation of annuities or of fiduciary, usufructuary or other limited interests in property and the hearing of an appeal under section 24.

[Section 29 substituted by section 4 of Act 89 of 1972 and section 3 of Act 92 of 1983 and amended by section 46 of Act 97 of 1986]

 

30. ………….

[Section 30 repealed by section 271 of Act 28 of 2011 effective on 1 October 2012]