Page 588 - Juta's Indirect Tax

IN 68 (2) TAX ADMINISTRATION ACT: INTERPRETATION NOTES IN 68 (2)
580 Juta’s IndIrect tax 2016
No. Schedule 1 provisions not
Provisions of tax Acts not repealed or amended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
commenced Income Tax Act 58 of 1962
4. Para. 23(f)
Substitution of the de nition of ‘prescribed rate’ in section 1
Section 1 of the Income Tax Act, 1962, is hereby amended—
(f) by the substitution for the de nition of
No changes to current wording of de nition of “prescribed rate” in section 1.
Proposed note under provision:
[De nition of “prescribed rate” ... to be substituted by para. 23(f) of Schedule
• The de nition of “prescribed rate” is relevant to the calculation of interest under section 89(2), 89bis and 89quat.
5. Para. 43(c)
Substitution of section 35A(9)
Section 35A of the Income Tax Act, 1962, is hereby amended—
(c) by the substitution for subsection (9) of the
No changes to current wording of section 35A(9).
Proposed note under provision:
[Sub-s. 35A(9) ... to be substituted by para. 43(c) of Schedule 1 to Act 28 of 2011 with effect from a date determined by the President by proclamation in the Gazette]
• This subsection charges interest on unpaid withholding tax
6. Para. 54
Deletion of section 64B(9)
Section 64B of the Income Tax Act, 1962, is hereby amended by the deletion of subsections (9) ...
No changes to current wording of section 64B(9).
• Interest on unpaid STC amounts is levied under section 64B (9) of the ITA.
7. Para. 55
Deletion of section 64K(6)
Section 64K of the Income Tax Act, 1962, is hereby amended by the deletion of subsections ... (6) ...
No changes to current wording of section 64K(6).
• Interest on unpaid amounts of dividends tax is levied under section 64K (6) of the ITA.
‘prescribed rate’ of the following de nition: ‘‘prescribed rate’ means the rate
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. 23(f) only relates to interest, there are no changes to the current wording.
contemplated in section 189(3) of the Tax Administration Act;’.
following subsection:
‘(9) If a purchaser fails to pay any amount contemplated in subsection (1) to the Commissioner within the period allowed
for payment in terms of subsection (4), that purchaser[—
(a) is liable for interest at the prescribed rate on any amount outstanding calculated from the day following the last date for payment
to the date that the amount is received by the Commissioner; and
• As the amendment under para. 43(c) only relates to interest, there are no changes to the current wording.
(b)] must pay a penalty equal to ten per cent of [that] the amount, in addition to any other penalty or charge for which he or she may be liable under this Act.’.
Proposed note under provision:
• As section 64B(9) only relates to the imposition of interest, para. 54 does not commence to the extent that it repeals this subsection.
[Sub-s. (9) ... to be deleted by para. 54 of Schedule 1 to Act 28 of 2011 with effect from a date determined by the President by proclamation in the Gazette]
• Para. 54 partially commenced to the extent that subsection 64B (11) is deleted.
Proposed note under provision:
• As section 64K(6) only relates to the imposition of interest, para. 55 does not commence to the extent that it repeals this subsection.
[Sub-s. (6) ... to be deleted by para. 55 of Schedule 1 to Act 28 of 2011 with effect from a date determined by the President by proclamation in the Gazette]
• Para. 55 partially commenced to the extent that subsection 64K(3), (5), (7) and (8) are deleted.
• The amendment re ected in section 35A(9) (b) will only commence when para. 43(c) commences.