Page 453 - Juta's Indirect Tax

IN 61 VaLue-added tax act: InterPretatIOn nOtes IN 61
(2) If any person who is liable for the payment of tax in accordance with the provisions of section 29 fails to pay any amount of such tax within the period allowed for the payment of such tax in terms of that section, he shall, in addition to such amount of tax, pay—
(a) a penalty equal to 10 per cent of the said amount of tax; and
(b) where payment of the said amount of tax is made on or after the rst day of the month following the month during which the period allowed for payment of the tax ended, interest on the said amount of tax, calculated at the prescribed rate (but subject to the provisions of section 45A) for each month or part of a month in the period reckoned from the said rst day.
(3) If any person who is liable for the payment of tax in accordance with the provisions of section 8 (2C) or 8 (2D) fails to pay any amount of such tax within the period allowed for the payment of such tax in terms of that section, the person shall, in addition to such amount of tax, pay where payment of the said amount of tax is made on or after the rst day of the month following the month during which the period allowed for payment of the tax ended, interest on the said amount of tax, calculated at the prescribed rate (but subject to the provisions of section 45A ) for each month or part of a month in the period reckoned from the said rst day.
(4) Where any importer of goods which are required to be entered under the Customs and Excise Act, fails to pay any amount of tax payable in respect of the importation of the goods on the date on which the goods are entered under the said Act for home consumption in the Republic or the date on which customs duty is payable in terms of the said Act in respect of the importation or, if such duty is not payable, the date on which it would be so payable if it had been payable, whichever date is later, that importer shall, in addition to such amount of tax pay—
(a) a penalty equal to 10 per cent of the said amount of tax; and
(b) where payment of the said amount of tax is made on or after the rst day of the month following the month
during which the period allowed for payment of the tax ended, interest on the said amount of tax, calculated at the prescribed rate (but subject to the provisions of section 45A) for each month or part of a month in the period reckoned from the said rst day.
(5) Where any person who is liable for the payment of tax fails to pay any amount of such tax on the date on which in terms of the Customs and Excise Act, liability arises for the payment of the excise duty or environmental levy referred to in section 7 (3) (a) , that person shall, in addition to such amount of tax, pay—
(a) a penalty equal to 10 per cent of the said amount of tax; and
(b) where payment of the said amount of tax is made on or after the rst day of the month following the month during which
the period allowed for payment of the tax ended, interest on that amount of tax, calculated at the prescribed rate (but
subject to the provisions of section 45A ) for each month or part of a month in the period reckoned from the said rst day.
(6) If any person who is liable for the payment of tax and is required to make such payment in the manner prescribed in section 14 , fails to pay any amount of such tax within the period allowed for payment of such tax in terms of the
said section, he shall in addition to such amount of tax, pay—
(a) a penalty equal to 10 per cent of the said amount of tax; and
(b) where payment of the said amount of tax is made on or after the rst day of the month following the month
during which the period allowed for payment of the tax ended, interest on the said amount of tax, calculated at the prescribed rate (but subject to the provisions of section 45A) for each month or part of a month in the period reckoned from the said rst day.
(6A) If any person who is liable for the payment of additional tax in accordance with the provisions of section 60 fails to pay any amount of such tax on or before the last business day of the month in which the last day of the period allowed for the payment of such tax in terms of that section falls, he shall, in addition to such amount of tax, pay interest on the said amount of tax, calculated at the prescribed rate (but subject to the provisions of section 45A ) for each month or part of a month during which the said tax is not paid.
Pre-1 April 2010
(7) To the extent that the Commissioner is satis ed that the failure on the part of the person concerned or any other person under the control or acting on behalf of that person to make payment of the tax within the period for payment contemplated in subsection (1) (a), (2), (3), (4), (6) or (6A) or on the date referred to in subsection (5), as the case may be—
(a) (b)
(i) did, having regard to the output tax and input tax relating to the supply in respect of which interest is payable, not result in any nancial loss (including any loss of interest) to the State; or
(ii) such person did not bene t nancially (taking interest into account by not making such payment within the said period or on the said date, he may remit, in whole or in part, the interest payable in terms of this section; or
was not due to an intent not to make payment or to postpone liability for the tax, he may remit, in whole or in part,
any penalty payable in terms of this section. From 1 April 2010
(7) Where the Commissioner is satis ed that the failure on the part of the person concerned or any other person under
the control or acting on behalf of that person to make payment of the tax within the period for payment contemplated in subsection (1) (a), (2) , (3) , (4) , (6) , (6A) or (8) or on the date referred to in subsection (5) , as the case may be—
(a) was due to circumstances beyond the control of the said person, he or she may remit, in whole or in part, the
interest payable in terms of this section; or
(b) was not due to an intent not to make payment or to postpone liability for the payment of the tax, he or she may
remit, in whole or in part, any penalty payable in terms of this section.
(8) Notwithstanding anything to the contrary in this section, the Commissioner may prescribe, by notice in the
Gazette, that any interest on any outstanding amount payable in terms of this Act, is calculated on the daily balance owing and compounded monthly from such date and for such period as the Commissioner may prescribe.
Juta’s IndIrect tax 2016 445