Page 596 - Juta's Indirect Tax

IN 68 (2) TAX ADMINISTRATION ACT: INTERPRETATION NOTES IN 68 (2)
588 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Provisions of tax Acts not repealed or amended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
Value Added Tax Act 89 of 1991 (VAT Act)
20. Para. 133(a) to the extent
Deletion of section 44(1) to the extent related to interest
Section 44 of the Value-Added Tax Act, 1991, is hereby amended—
Deletion of section 44(1) should be effected with note that substitution does not apply to the extent related to interest.
Proposed note under provision:
• Section 39(1)(b) of the VAT Act provides that any undue refund paid under section 44(1) or set-off under section 44(6) is to be treated as tax unpaid to calculate interest and the 10% penalty.
related to interest
(a)
by the deletion of subsections (1) ...
(7) ...
[Sub-s. (7) ... substituted by para. 128(f) 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.]
(8) Notwithstanding anything to the contrary in this section, the Commissioner may prescribe, by notice in the Gazette, that any interest on any outstanding amount payable in terms of this Act, is calculated on the daily balance owing and compounded monthly from such date and for such period as the Commissioner may prescribe
[Sub-s. (8) ...to be deleted by para. 128(f) of Schedule 1 to Act 28 of 2011 with effect from a date determined by the President by proclamation in the Gazette.]
[Sub-s. 44(1) substituted by para. 133(a) 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.]
• Para. 133(a) does not commence to the extent that section 44(1) of the VAT Act is required for the purpose of determining the amount upon which interest is payable.
• The deletion of section 44(2) commenced as the refund of the other overpaid amounts is made in accordance with section 190 and 191 of the Act.