Page 594 - Juta's Indirect Tax

IN 68 (2) TAX ADMINISTRATION ACT: INTERPRETATION NOTES IN 68 (2)
586 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Provisions of tax Acts not repealed or amended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
17. Para. 128(d) to the extent
Substitution of section 39(4) to the extent related to interest
(d) by the substitution for subsection (4) of the following subsection:
Substitution of section 39(4) must be effected with explanatory note as proposed below.
(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 substituted section 39(4) removes the interest-charging provision and therefore the substitution is not effective except to the extent that a penalty is now levied in terms of Chapter 15 of the Act for non-payment of tax by the due date.
related to interest
‘(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, the Commissioner must, in accordance with Chapter 15 of the Tax Administration Act, impose on 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].”
[Sub-s. (4) ... substituted by para. 128(d) 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 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, the Commissioner must, in accordance with Chapter 15 of the Tax Administration Act, impose on that importer a penalty equal to 10 per cent of the said amount of tax.