Page 587 - Juta's Indirect Tax

IN 68 (2) TAX ADMINISTRATION ACT: INTERPRETATION NOTES IN 68 (2)
Juta’s IndIrect tax 2016 579
(a) (b)
sections 187(2), (3)(a) to (e) and (4), 188(2) and (3) and 189(2) and (5) of the Act; and
any provision of Schedule 1 to the Act that amends or repeals a provision of a tax Act relating to interest under that tax Act, to the extent of that amendment or repeal.
The Tax Administration Act, 2011 (Act 28 of 2011) shall commence on 1 October 2012 except for-
No.
Schedule 1 provisions not commenced
Provisions of tax Acts not repealed or amended
Wording of relevant Schedule 1 provisions
Final wording in tax Act after application of Schedule 1 to the Act
Explanatory notes
Transfer Duty Act 40 of 1949
1. Para. 3(a)
Substitution of heading of section 4
Section 4 of the Transfer Duty Act, 1949, is hereby amended—
(a) by the substitution for the heading of the following heading:
‘Penalty [and interest] on late payment of duty’;
No changes to current heading of section 4 Proposed note under provision:
[S. 4 heading to be substituted by Para. 3(a) of Schedule 1 to Act 28 of 2011 with effect from a date determined by the President by proclamation in the Gazette.]
• As the amendment under para. 3(a) only relates to interest, there are no changes to the current heading.
2. Para. 3(c)
Deletion of section 4(1A)
Section 4 of the Transfer Duty Act, 1949, is hereby amended—
(c) by the deletion of subsection (1A).
No changes to current wording of section 4(1A) Proposed note under provision:
[Sub-s. 4(1A) ... to be deleted by para. 3(c) of Schedule 1 to Act 28 of 2011 with effect from a date determined by the President by proclamation in the Gazette.]
• Interest on unpaid amounts concerning transactions occurring after 1 March 2005 is levied in terms of section 4(1A) of the TDA.
Estate Duty Act 45 of 1955
3. Para. 18
Amendment of section 10(1)
Section 10 of the Estate Duty Act, 1955,
is hereby amended by the substitution for subsection (1) of the following subsection;
No changes to current wording of section 10 Proposed note under provision:
[Sub-s. 10(1) ... to be substituted by para. 18 of Schedule 1 to Act 28 of 2011 with effect from a date determined by the President by proclamation in the Gazette.]
• As the amendment under para. 18 only relates to interest, there are no changes to the current wording.
‘(1) If [any duty remains unpaid at
the expiration of a period of thirty days from the date of payment noti ed in accordance with subsection (2) of section nine, there shall be payable, in addition to the unpaid duty, interest at the rate of six per cent per annum on the amount of unpaid duty calculated from the date of the expiration of the said period to the date of payment: Provided that, where] the assessment of duty is delayed beyond
a period of twelve months from the date of death, interest at the prescribed rate [of six per cent per annum] shall be payable as from a date twelve months after the date of death on the difference (if any) between the duty assessed and any deposit (if any) made on account of the duty payable within the said period of twelve months.’.
SCHEDULE
Annexure B – Table: Extent to which provisions of Schedule 1 to the Tax Administration Act, 2011, did not commence
• Para. 3(b), which substitutes section 4(1), did commence as it only relates to penalties. The effect is that the penalty concerning amounts not paid in relation to transactions that occurred prior to 1 March 2005 is treated as an administrative penalty under Chapter 15 of the Act.
• As the amendment under para. 3(a) only relates to interest, there are no changes to the current wording.