Page 247 - Juta's Indirect Tax

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(b) (c)
DIAMOND EXPORT LEVY ACT 15 OF 2007 s 13
fails to satisfy the 15 per cent described in subsection (1) (a) by an amount up to 5 percentage points; and in respect of that assessment period satis ed subsection (1) in the immediately preceding assessment period,
premises within the Republic for the bene t of those diamond bene ciators;
[Para. (a) substituted by s. 71 (a) of Act 3 of 2008.]
(b) the total gross sales of the producer described in
paragraph (a) during that assessment period means— (i) all amounts received or accrued during that assessment period by that producer in respect of all unpolished diamonds delivered to premises within the Republic (other than the value of all unpolished diamonds described in paragraph (ii) to the extent that any amount of the value of those diamonds is not subsequently re-imported
into the Republic); and
[Sub-para. (i) substituted by s. 71 (b) of Act 3 of 2008.]
(ii) the value of all unpolished diamonds under the cover of bills of entry for export delivered during
that assessment period; less
(iii) the value of all unpolished diamonds as released
for import in terms of section 69B of the Diamonds Act, but not exceeding the aggregate of the amount described in subparagraph (i) and the value described in subparagraph (ii).
(2) For purposes of subsections (1) and (2), ‘gross sales’ in respect of a producer described in subsection (1) include—
(a) the face value reduction or discharge of any
outstanding obligations;
(b) the market value of any property, nancial assistance,
service or other bene t; and
(c) any premium received or accrued in respect of an
option on an unpolished diamond.
(3) For purposes of subsections (1) and (2), ‘gross
sales’ in respect of a producer described in subsection (1) do not include—
(a) any tax imposed by the Value-Added Tax Act, 1991
(Act 89 of 1991);
(b) any transportation and insurance costs incurred for
physically exporting unpolished diamonds from the
Republic; and
(c) the value of any unpolished diamond sold to or
acquired (directly or indirectly) from the State Diamond Trader in terms of section 59B of the Diamonds Act.
(4) To the extent any amount of total gross sales described in subsection (1) is not quanti able, that amount is deemed received or accrued in the assessment period it becomes quanti able.
12 Ministerial reduction
(1) During any assessment period the Minister of Finance may reduce the import credit described in section 4 and the exemptions described in sections 7, 8 and 10 by a prescribed percentage.
(2) Any percentage reduction described in subsection (1) must—
(a) equally and simultaneously apply to the import
credit and exemptions described in that subsection;
and
(b) affect producers and diamond bene ciators equally
and simultaneously.
13 Acquisitions from State Diamond Trader
No exemption contemplated in this Chapter applies to any person in respect of any unpolished diamond that was acquired (directly or indirectly) from the State Diamond Trader unless that diamond is exported by a diamond bene ciator contemplated in section 10 or a person granted a permit to export pursuant to 26 (h).
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) will be subject to a levy that equals—
(a) the percentage by which that producer failed to satisfy
the 15 per cent as described in subsection (2) (b) during the assessment period described in subsection (2); multiplied by
(b) the value of all of its unpolished diamonds that were under 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).
9 Exemption for small producers
Notwithstanding section 2 (1), if during any assessment period—
(a) the sum of a producer’s total gross sales described in
section 11 (1) (b) during the assessment period and the immediately preceding assessment period do not exceed R20 million;
(b) the producer described in paragraph (a) does not at any time during that period hold more than a 50 per cent ownership interest (directly or indirectly) in another producer;
(c) the ownership interest in a producer described in paragraph (a) is not at any time during that period held more than 50 per cent (directly or indirectly) by another producer; and
(d) the ownership interest in a producer described in paragraph (a) is not at any time during that period held more than 50 per cent (directly or indirectly) by any person that during that period holds more than a 50 ownership interest (directly or indirectly) in any other producer,
the 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.
10 Exemption for diamond bene ciators
Notwithstanding section 2 (1), if during any assessment period a diamond bene ciator holds a permit to export pursuant to section 26 (h) of the Diamonds Act covering that entire assessment period, that diamond bene ciator is exempt 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.
11 Gross sales
(1) For purposes of this Chapter, during any assessment period—
(a) gross sales to diamond bene ciators in respect of a producer means all amounts received or accrued during that assessment period by that producer in respect of all unpolished diamonds delivered to
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