Page 163 - Juta's Indirect Tax

s 189 TAX ADMINISTRATION ACT 28 OF 2011 s 190
189 Rate at which interest is charged
(1) The rate at which interest is payable under section 187 is the prescribed rate.
(3) The “prescribed rate” is the interest rate that the Minister may from time to time x by notice in the Gazette under section 80 (1) (b) of the Public Finance Management Act, 1999 (Act 1 of 1999).
(4) If the Minister xes a different interest rate referred to in subsection (3) the new rate comes into operation on the rst day of the second month following the month in which the new rate becomes effective for purposes of the Public Finance Management Act, 1999.
(4) An amount under subsection (1) (b) is regarded as a payment to the National Revenue Fund unless a refund is made in the case of—
(a) an assessment by SARS, within three years from the
later of the date of the assessment or the erroneous
payment; or
(b) self-assessment, within ve years from the later of the
date the return had to be submitted or, if no return is required, payment had to be made in terms of the relevant tax Act or the erroneous payment was made.
[Sub-s. (4) substituted by s. 53 of Act 44 of 2014 (date of commencement deemed to have been 1 October 2012) and by s. 60 (1) (b) of Tax Administration Laws Amendment Act, 2015 – date of commencement: date of promulgation of Tax Administration Laws Amendment Act, 2015.]
Pendlex
(2) In the case of interest payable with respect to refunds on assessment of provisional tax and employees’ tax paid for the relevant year of assessment, the rate payable by SARS is four percentage points below the prescribed rate.
[Date of commencement of sub-s. (2): to be proclaimed.]
Pendlex
(5) If interest is payable under this Chapter and the rate at which the interest is payable has with effect from any date been altered, and the interest is payable in respect of any period or portion thereof which commenced before the said date, the interest to be determined in respect of—
(a) the period or portion thereof which ended immediately
before the said date; or
(b) the portion of the period which was completed before
the said date,
must be calculated as if the rate had not been altered.
[Sub-s. (5) substituted by s. 67 of Act 21 of 2012 – date of commencement of substitution deemed to have been 1 October 2012.]
[Date of commencement of sub-s. (5): to be proclaimed.]
CHAPTER 13 REFUNDS (ss. 190–191)
190 Refunds of excess payments
(1) SARS must pay a refund if a person is entitled to a refund, including interest thereon under section 188 (3) (a), of—
[Words preceding para. (a) substituted by s. 60 (1) (a) of Tax Administration Laws Amendment Act, 2015 – date of commencement deemed to have been 1 October 2012.]
(a) an amount properly refundable under a tax Act and if so re ected in an assessment; or
(b) the amount erroneously paid in respect of an assessment in excess of the amount payable in terms of the assessment.
(2) SARS need not authorise a refund as referred to in subsection (1) until such time that a veri cation, inspection or audit of the refund in accordance with Chapter 5 has been nalised.
(3) SARS must authorise the payment of a refund before the nalisation of the veri cation, inspection or audit if security in a form acceptable to a senior SARS of cial is provided by the taxpayer.
Juta’s IndIrect tax 2016
(5) If SARS pays to a person by way of a refund any amount which is not properly payable to the person under a tax Act, the amount, including interest thereon under section 187 (1), is regarded as an outstanding tax debt from the date on which it is paid to the person.
[Sub-s. (5) substituted by s. 71 of Act 39 of 2013 (date of commencement deemed to have been 1 October 2012) and by s. 60 (1) (c) of Tax Administration Laws Amendment Act, 2015 – date of commencement deemed to have been 1 October 2012.]
(5A) If a person who carries on the ‘business of a bank’ as de ned in the Banks Act, 1990 (Act 94 of 1990), holds an account on behalf of a client into which an amount referred to in subsection (5) is deposited, reasonably suspects that the payment of the amount is related to a tax offence, the person must immediately report the suspicion to SARS in the prescribed form and manner and, if so instructed by SARS, not proceed with the carrying out of any transaction in respect of the amount for a period not exceeding two business days unless—
(a) SARS or a High Court directs otherwise; or
(b) SARS issues a notice under section 179.
[Sub-s. (5A) inserted by s. 60 (1) (d) of Tax Administration Laws Amendment Act, 2015 – date of commencement: date of promulgation of Tax Administration Laws Amendment Act, 2015.]
(6) A decision not to authorise a refund under subsection (1) (b) is subject to objection and appeal.
[Sub-s. (6) substituted by s. 60 (1) (e) of Tax Administration
Laws Amendment Act, 2015 – date of commencement: date of promulgation of Tax Administration Laws Amendment Act, 2015.]
Prelex
Words preceding para. (a) in force from 1 October 2012 until retrospective substitution by s. 60 (1) (a) of the Tax Administration Laws Amendment Act, 2015, which is also deemed to have come into operation on 1 October 2012
(1) A person is entitled to a refund of—
155
Prelex
Wording of sub-s. (4) in force until promulgation of Tax Administration Laws Amendment Act, 2015
(4) A person is entitled to a refund under subsection (1) only if the refund is claimed by the person in the case of—
(a) an assessment by SARS, within three years from
the date of the assessment; or
(b) self-assessment, within ve years from the date
the return had to be submitted or, if no return is required, payment had to be made in terms of the relevant tax Act.
Prelex
Wording of sub-s. (5) in force from 1 October 2012 until its retrospective substitution by s. 60 (1) (c) of the Tax Administration Laws Amendment Act, 2015, which is also deemed to have come into operation on 1 October 2012
(5) If SARS pays to a person by way of a refund any amount which is not properly payable to the person under a tax Act, the amount is regarded as an outstanding tax debt from the date on which it is paid to the person.
TAX ADMINISTRATION ACT