Page 162 - Juta's Indirect Tax

s 187
TAX ADMINISTRATION ACT 28 OF 2011 s 188
CHAPTER 12 INTEREST (ss. 187–189)
187 General interest rules
(1) If a tax debt or refund payable by SARS is not paid in full by the effective date, interest accrues, and is payable, on the amount of the outstanding balance of the tax debt or refund—
[Words preceding para. (a) substituted (‘, and is payable,’ inserted) by s. 59 (1) (a) of Tax Administration Laws Amendment Act, 2015 – date of commencement deemed to have been 1 October 2012.]
(a) at the rate provided under section 189; and
(b) for the period provided under section 188.
[NB: Sub-s. (2) has been substituted by s. 52 (1) of Act 44 of 2014, a provision that will come into operation on the date on which section 187 (2) of the Tax Administration Act, 2011, comes in to operation). See Pendlex below.]
(3) The effective date for purposes of the calculation of interest in relation to—
(g) an outstanding tax debt referred to in section 190 (5), is the date of payment of a refund which is not properly payable under a tax Act.
[Para. (g) added by s. 59 (b) of Tax Administration Laws Amendment Act, 2015 – date of commencement: date of promulgation of Tax Administration Laws Amendment Act, 2015.]
(5) The effective date in relation to a jeopardy assessment is the date for payment speci ed in the jeopardy assessment.
(6) If a senior SARS of cial is satis ed that interest payable by a taxpayer under subsection (1) is payable as a result of circumstances beyond the taxpayer’s control, the of cial may, unless prohibited by a tax Act, direct that so much of the interest as is attributable to the circumstances is not payable by the taxpayer.
(7) The circumstances referred to in subsection (6) are limited to—
(a) a natural or human-made disaster;
(b) a civil disturbance or disruption in services; or
(c) a serious illness or accident.
(8) SARS may not make a direction that interest is not
payable under subsection (6) after the expiry of three years, in the case of an assessment by SARS, or ve years, in the case of self-assessment, from the date of assessment of the tax in respect of which the interest accrued.
[Sub-s. (8) added by s. 59 (c) of Tax Administration Laws Amendment Act, 2015 – date of commencement: date of promulgation of Tax Administration Laws Amendment Act, 2015.]
188 Period over which interest accrues
(1) Unless otherwise provided in a tax Act, interest payable under section 187 is imposed for the period from the effective date of the tax to the date the tax is paid.
Pendlex
(4) The effective date in relation to an additional assessment or reduced assessment is the effective date in relation to the tax payable under the original assessment. [Date of commencement of sub-s. (4): to be proclaimed.]
Pendlex
(2) Interest payable under a tax Act is calculated on the daily balance owing and compounded monthly, and the Commissioner may prescribe by public notice from which date this method of determining interest will apply to a tax type.
[Date of commencement of sub-s. (2): to be proclaimed.]
Pendlex (to come into operation on the date on which section 187 (2) of the Tax Administration Act, 2011, comes in to operation)
(2) Interest payable under a tax Act is calculated on— (a) the daily balance owing; or
(b) the daily balance owing and compounded monthly,
which method of determining interest will apply to a tax type from the date the Commissioner prescribes it by public notice.
Pendlex
(a) tax other than income tax or estate duty for any tax period, is the date by which tax for the tax period is due and payable under a tax Act;
[Date of commencement of para. (a): to be proclaimed.] (b) income tax for any year of assessment, is the date falling seven months after the last day of that year in the case of a taxpayer that has a year of assessment ending on the last day of February, and six months in
any other case;
[Date of commencement of para. (b): to be proclaimed.]
Pendlex
(2) Interest payable in respect of the—
(a) rst payment of provisional tax, is imposed
from the effective date for the rst payment of provisional tax until the earlier of the date on which the payment is made or the effective date for the second payment of provisional tax; and
(b) second payment of provisional tax, is imposed from the effective date for the second payment of provisional tax until the earlier of the date on which the payment is made or the effective date for income tax for the relevant year of assessment.
[Date of commencement of sub-s. (2): to be proclaimed.] (3) Unless otherwise provided under a tax Act—
(a) interest on an amount refundable under section 190 is calculated from the later of the effective date or the date that the excess was received by SARS to the date the refunded tax is paid; and
(b) for this purpose, if a refund is offset against a liability of the taxpayer under section 191, the date on which the offset is effected is considered to be the date of payment of the refund.
[Date of commencement of sub-s. (3): to be proclaimed.]
(c) estate duty for any period, is the earlier of the date of assessment or 12 months after the date of death; [Date of commencement of para. (c): to be proclaimed.]
(d) a xed amount penalty referred to in section 210, is the date of assessment of the penalty, and in relation to an increment of the penalty under section 211 (2), the date of the increment;
[Date of commencement of para. (d): to be proclaimed.]
[Para. (d) substituted by s. 66 of Act 21 of 2012 – date of commencement of substitution deemed to have been 1 October 2012.]
(e) a percentage based penalty referred to in section 213, is the date by which tax for the tax period should have been paid;
[Date of commencement of para. (e): to be proclaimed.]
(f)
an understatement penalty, is the effective date for the tax understated; and
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Juta’s IndIrect tax 2016