Page 595 - Juta's Indirect Tax

IN 68 (2) TAX ADMINISTRATION ACT: INTERPRETATION NOTES IN 68 (2)
Juta’s IndIrect tax 2016 587
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Provisions of tax Acts not repealed or amended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
18. Para. 128(e) to the extent
Substitution of section 39(5) to the extent related to interest
(e) by the substitution for subsection (5) of the following subsection:
(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), the Commissioner must, in accordance with Chapter 15 of the Tax Administration Act, impose on that person [shall, in addition to such amount of tax, pay—
Substitution of section 39(5) must be effected with explanatory note as proposed below.
(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), the Commissioner must, in accordance with Chapter 15 of the Tax Administration Act, impose on that person a penalty equal to 10 per cent of the said amount of tax.
• The substituted section 39(5) 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
19. Para. 128(f) to the extent
Deletion of section 39(6), (6A), (7) and (8) to the extent related to interest
(e) by the deletion of subsections (6), (6A), (7) and (8)
Deletion of section 39(6), (6A), (7) and (8)) must be effected with explanatory note as proposed below.
The deletion of subsections 39(6), (6A), (7)
and (8) under para. 128(f) commenced to the following extent:
• As para. 128(b) incorporates the non-payment
related to interest
(6) ...
of amounts in terms of section 14 of the VAT Act, and subjects the non-payment to both penalty and interest, the deletion of section 39(6) of the VAT Act commenced.
(a)] a penalty equal to 10 per cent of the said amount of tax[; and
[Sub-s. (5) ... substituted by para. 128(e) 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.]
(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].’
[Sub-s. (6) ... deleted by para. 128(f) of Schedule 1 to Act 28 of 2011 and commenced on 1 October 2012: Proclamation 51 in Government Gazette 35687.]
• The deletion of section 39(6A) of the VAT Act commenced and interest on the understatement penalty is imposed under section 187(3)(f) of the Act.
(6A) ...
[Sub-s. (6A) ... deleted by para. 128(f) of Schedule 1 to Act 28 of 2011 and commenced on 1 October 2012: Proclamation 51 in Government Gazette 35687.]
• The deletion of section 39(7) commenced to the extent that the remission of an administrative penalty is regulated under Part E of Chapter 15 of the Act, but did not commence to the extent related to interest.
• The deletion of section 39(8) did not commence as it only relates to the calculation of interest under section 39.