Page 592 - Juta's Indirect Tax

IN 68 (2) TAX ADMINISTRATION ACT: INTERPRETATION NOTES IN 68 (2)
584 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Provisions of tax Acts not repealed or amended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
15. Para. 128(a) and (b) to the
Substitution of section 39 heading and subsection (1) to the extent related to interest
Section 39 of the Value-Added Tax Act, 1991, is hereby amended—
(a) by the substitution for the heading of the
Substitution of section 39 heading and subsection (1) must be effected with explanatory note as proposed below.
Penalty for failure to pay tax when due.—
(1) If any person who is liable for the payment of tax and is required to make such payment
in accordance with the provisions of section
14, 28(1) or 29, fails to pay any amount of
such tax within the period for the payment of such tax speci ed in the said provisions, the Commissioner must, in accordance with Chapter 15 of the Tax Administration Act, impose a penalty equal to 10 per cent of the said amount of tax.
Para. 128(a) and (b): The substitution of section 39(1) under para. 128(a) and (b) commenced to the following extent:
• The substitution of the heading
extent related to interest
following heading: ‘Penalty [and interest]
• The incorporation of sections 14 and 29 of the VAT Act into section 39(1);
for failure to pay tax when due’;
(b) by the substitution for subsection (1) of the
• The retention of a 10% penalty imposed for the non-payment of VAT by the due date under section 39(1); and
following subsection:
‘(1) [(a)] If any person who is liable for the
payment of tax and is required to make such payment [in the manner prescribed in] in accordance with the provisions of section 14, 28(1) or 29, fails to pay any amount of such tax within the period for the payment of such tax speci ed in the said [provision he shall] provisions, the Commissioner must, in [addition to such amount of tax, pay] accordance with Chapter 15 of the Tax Administration Act, impose[—
• The treatment of the penalty as an administrative penalty under Chapter 15 of the Act.
(i)] a penalty equal to 10 per cent of the said amount of tax[; and
• Interest continues to accrue under section 39 at the prescribed rate for each month or part of a month on amounts not paid by the rst day of the month following the month during which payment is required to be made.
(ii) 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.
(b) Where any amount of tax has in relation to any tax period of any vendor been refunded to the vendor in terms of the provisions of section 44(1), read with section 16(5), or has in relation to that period been set off against unpaid tax in terms of the provisions of section 44(6), and such amount was in whole or in
[S.39 heading and sub-s. (1) ... substituted by para. 128(a) and (b) of Schedule 1 to Act 28 of 2011 and commenced on 1 October 2012 except to the extent related to interest in respect of which the wording prior to the amendment applies: Proclamation 51 in Government Gazette 35687.]
The effect is of the partial commencement is that:
• The 10% late-payment penalty on the late or
non-payment of VAT is imposed, remitted and otherwise handled procedurally under Chapter 15 of the Act;