Page 246 - Juta's Indirect Tax

s 2
DIAMOND EXPORT LEVY ACT 15 OF 2007 s 8
Part II
BASIC LEVY REGIME (ss 2-3)
2 Charging provision
(1) Any person is liable for the levy whenever that person delivers (or should have delivered) a bill of entry for export in respect of any unpolished diamond.
(2) The levy in respect of an unpolished diamond equals the levy rate multiplied by the value of that diamond as released for export in terms of section 69 of the Diamonds Act.
(3) Any amount payable in terms of this Act must be paid for the bene t of the National Revenue Fund.
3 Rates
The levy applies at a 5 per cent rate.
Part III
GENERAL RELIEF MEASURES (s 4)
4 Import credit
(1) Any person registered under section 2 of the Administration Act is entitled to receive a credit in respect of any unpolished diamond imported into the Republic on the date a registering of cer releases that diamond for import as described in section 69B of the Diamonds Act.
(2) The credit described in subsection (1) equals—
(a) the levy rate; multiplied by
(b) the value in respect of that diamond as released for
import in terms of section 69B of the Diamonds
Act.
(3) All credits described in subsection (2) arising
during an assessment period apply as an offset against the levy paid or payable in respect of that assessment period.
(4) To the extent credits remain after the offset described in subsection (3), those credits will be deemed to arise in the immediately succeeding assessment period.
(5) A person is not entitled to receive any credits described in this section in respect of any unpolished diamond if that diamond was previously exported under—
(a) the cover of a temporary exemption certi cate described in section 5; or
(b) the cover of an election described in section 6.
(6) A person is not entitled to receive credits described in this section in respect of any unpolished diamond imported during any assessment period in which that
person quali es for relief in terms of Part IV.
5 Relief for temporary exports
Notwithstanding section 2 (1), the levy does not apply to any unpolished diamond covered by a temporary exemption certi cate described in section 64 of the Diamonds Act.
6 Relief for election purchases
Notwithstanding section 2 (1), any person that purchases an unpolished diamond at a diamond exchange and export centre in respect of which an election described in section 8 (1) of the Administration Act applies is not subject to the levy in respect of that diamond if that person—
(a) delivers a bill of entry for export in respect of that diamond within 10 business days after that purchase; and
(b) provides a copy of that election with the bill of entry for export.
238
Part IV
PRODUCER AND DIAMOND BENEFICIATOR RELIEF MEASURES (ss 7-13)
7 Exemption for large producers
(1) Notwithstanding section 2 (1), if during any assessment period—
(a) the sum of a producer’s gross sales to diamond
bene ciators described in section 11 (1) (a) for that assessment period and the immediately preceding assessment period equal at least 40 per cent of the sum of that producer’s total gross sales described in section 11 (1) (b) during the aggregate of those assessment periods;
(b) the sum of the producer’s total gross sales described in section 11 (1) (b) during those assessment periods described in paragraph (a) exceeds R 3 billion; and
(c) the producer holds an exemption from section 48A of the Diamonds Act pursuant to section 74 of that Act that covers that entire assessment period,
that producer is exempt from the levy during that assessment period.
(2) If during an assessment period a producer—
(a) satis es subsections (1) (b) and (c);
(b) fails to satisfy the 40 per cent described in subsection
(1) (a) by an amount up to 5 percentage points; and (c) in respect of that assessment period, satis ed subsection (1) in the immediately preceding
assessment period,
the levy rate in subsection (3) applies to that producer in lieu of the levy rate applied in section 3.
(3) A producer described in subsection (2) is subject to a levy that equals—
(a) the percentage by which that producer failed to
satisfy the 40 per cent described in subsection (2) (b) during the assessment period described in subsection (2); multiplied by
(b) the value all of its unpolished diamonds that were under the cover of a bill of entry for export delivered during the assessment period described in subsection (2); less
(c) the value of all of its unpolished diamonds as released for import in terms of section 69B of the Diamonds Act during the assessment period described in subsection (2), but not exceeding the value described in paragraph (b).
8 Exemption for medium producers
(1) Notwithstanding section 2 (1), if during any assessment period—
(a) the sum of the producer’s gross sales to diamond
bene ciators described in section 11 (1) (a) for the assessment period and the immediately preceding assessment period equal at least 15 per cent of the sum of that producer’s total gross sales described in section 11 (1) (b) during the aggregate of those assessment periods; and
(b) the sum of the producer’s total gross sales described in section 11 (1) (b) during those assessment periods described in paragraph (a) do not exceed R3 billion,
that producer is exempt from the levy in respect of its unpolished diamonds under the cover of a bill of entry for export delivered during that assessment period to the extent those unpolished diamonds were previously offered but not sold at a diamond exchange and export centre.
(2) If during an assessment period a producer— (a) satis es subsection (1) (b);
Juta’s IndIrect tax 2016