Page 353 - SAIT Compendium 2016 Volume2

IN 19 (3) Income Tax acT: InTeRPReTaTIon noTes IN 19 (3)
Example 9 – Change from February year-end to July year-end
Facts:
F, an individual, has in the past submitted accounts for a farming operation with a closing date ending on the last day of February, the last such accounts having been submitted for the year ended 29 February 2012. F has now applied for permission to submit accounts for the farming operation to the end of 31 July with effect from the 2013 year of assessment. The request has been approved by the Commissioner on condition that the results for the period 1 March 2012 to 31 July 2013 are included in the 2013 year of assessment. F has applied for permission to make provisional tax payments in line with the closing date of the accounts under paragraph 21 (2) of the Fourth Schedule.
Result:
The payments for provisional tax for the year of assessment ending on the last day of February 2013 and subsequent years of assessment may be approved as follows:
For the 2013 year of assessment (which includes the nancial accounts for farming activities – 1 March 2012 to 31 July 2013):
• 1st payment
• 2nd payment
• 3rd payment
– Six months after the commencement of the 2013 year of assessment, that is, 31 August 2012. – The accounting date, that is, 31 July 2013.
– Six months after the accounting date, that is, 31 January 2014.
For the 2014 and subsequent years of assessment: (which includes the nancial accounts for farming activities – 1 August to 31 July)
• 1st payment
• 2nd payment
• 3rd payment
– Six months after the commencement of the year (the accounting date), that is, 31 January 2014. – The accounting date, that is, 31 July 2014.
– Six months after the accounting date, that is, 31 January 2015.
All other income such as interest, remuneration and rent must still be accounted for during the 12 months ending on the last day of February and taken into account in calculating the payment of provisional tax on 31 January and 31 July as well as on 31 January (if applicable).
Example 10 – Change of accounting date from February to September
Facts:
G, an individual, who always submitted accounts on the last day of February, has now requested permission to submit them on 30 September, with effect from the 2013 year of assessment. G also requested permission to pay provisional tax in line with the accounting date.
Result:
For the 2012 year of assessment G would have submitted accounts for the period 1 March 2011 to 29 February 2012. If approval of G’s request is granted for the 2013 year of assessment G will submit nancial accounts for the period 1 March 2012 to 30 September 2013, that is, an extended period of 19 months.
Payments for provisional tax for the 2013 year of assessment will be payable as follows:
• 1st payment
• 2nd payment
• 3rd payment
– Six months after the commencement of the 2013 year of assessment, that is, 31 August 2012. – End of the year (the accounting date) that is, 30 September 2013
– Six months after the accounting date, that is, 31 March 2014.
Payments for provisional tax for the 2014 and subsequent years of assessment will be payable on the following dates:
• 1st payment
• 2nd payment
• 3rd payment
– Six months after the date of commencement of the year,(the accounting date) that is, 31 March. – The accounting date) that is, 30 September
– Six months after the end of the year, (accounting date) that is, 31 March
Example 11 – Change of accounting date from February to December
Facts:
H, an individual, who always submitted accounts on the last day of February, has now requested permission to submit them on 31 December, with effect from the 2013 year of assessment. H also requested permission to pay provisional tax in line with the accounting date.
Result:
For the 2012 year of assessment H would have submitted accounts for the period 1 March 2011 to 29 February 2012. For the 2013 year of assessment H will submit accounts for the period 1 March 2012 to 31 December 2012 which is a short period of 10 months.
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