Page 387 - SAIT Compendium 2016 Volume2

IN 27
Income Tax acT: InTeRPReTaTIon noTes IN 27
3.2.2
3.2.3
3.2.4
who is married and such remuneration is under the provisions of section 7 (2) of this Act deemed to be income of the employee’s spouse, in respect of such liability of that spouse, and shall pay the amount so deducted or withheld to the Commissioner within seven days after the end of the month during which the amount was deducted or withheld, or in the case of a person who ceases to be an employer before the end of such month, within seven days after the day on which he ceased to be an employer, or in either case within such further period as the Commissioner may approve.’
The personal liability of the employer is governed by paragraphs 4 and 5 (1) of the Fourth Schedule
The word ‘employer’ – as de ned in paragraph 1 of the Fourth Schedule
The term ‘representative employer’ as de ned in paragraph 1 of the Fourth Schedule —
‘4. Any amount required to be deducted or withheld in terms of paragraph 2 shall be a debt due to the State and the employer concerned shall save as otherwise provided be absolutely liable for the due payment thereof to the Commissioner.
5.(1) Subject to the provisions of subparagraph (6) any employer who fails to deduct or withhold the full amount of employees’ tax as provided in paragraph 2 shall be personally liable for the payment to the Commissioner of the amount which he fails to deduct or withhold, and shall, subject to the provisions of subparagraph (2), pay that amount to the Commissioner not later than the date on which payment should have been made if the employees’ tax had in fact been deducted or withheld in terms of paragraph 2.’
‘means any person (excluding any person not acting as a principal, but including any person acting in a duciary capacity or in his capacity as a trustee in an insolvent estate, an executor or an administrator of a bene t fund, pension fund, provident fund, retirement annuity fund or any other fund) who pays or is liable to pay to any person any amount by way of remuneration, and any person responsible for the payment of any amount by way of remuneration to any person under the provisions of any law or out of public funds (including the funds of any provincial council or any administration or undertaking of the State) or out of funds voted by Parliament or a provincial council;’
‘(a) in the case of any company, the public of cer of that company, or, in the event of such company being placed in liquidation or under judicial management, the liquidator or judicial manager, as the case may be;
(b) in the case of any divisional council, municipal council, village management board or like authority or any body corporate or unincorporate (other than a company or a partnership) any manager, secretary, of cer or other person responsible for paying remuneration on behalf of such council board, authority or body;
(c) in the case of a person under legal disability, any guardian, curator, administrator or other person having the management or control of the affairs of the person under legal disability; or
(d) in the case of any employer who is not ordinarily resident in the Republic, any agent of such employer having authority to pay remuneration,
who is a resident, but nothing in this de nition shall be construed as relieving any person from any liability, responsibility or duty imposed upon him by this Schedule.’
3.2.5
Personal liability of other persons and representative employers – paragraph 16 of the Fourth Schedule
‘16.(1) Every representative employer shall as regards the remuneration which the employer whom he or she represents pays or is liable to pay to any employee or which is paid or payable by the representative employer in his or her representative capacity, be subject in all respects to the same duties, responsibilities and liabilities under this Schedule as if that remuneration were remuneration paid or liable to be paid by him or her in his or her personal capacity.
(2) Any employees’ tax or interest on employees’ tax or any penalty imposed under this Part of any person who in terms of the de nition of ‘employer’ in paragraph 1 is an employer by virtue of his having paid or become liable to pay remuneration in a duciary capacity or in his capacity as a trustee in an insolvent estate, an executor, or an administrator of a bene t fund, pension fund, provident fund, retirement annuity fund or any other fund, or from the representative employer, shall be limited to the extent only of any assets belonging to the person, body, trust, estate or fund represented or administered by him which may be in his possession or under his management, disposal or control.
(2A) Every representative employer or other person who is personally liable as contemplated in subparagraphs (2), (2B) or (2C), who, as such, pays any employees’ tax, additional tax, penalty or interest due under this Act shall be entitled to recover the amount so paid from the person on whose behalf it is paid, or to retain out of any moneys that may be in his or her possession or may come to the representative employer in his or her representative capacity, an amount equal to the amount so paid.
(2B) Every representative employer and person contemplated in subparagraph (2) shall be personally liable for the payment of any employees’ tax, additional tax, penalty or interest payable by that representative employer or person in his or her representative capacity to the extent that the representative employer or person, while it remains unpaid —
(a) alienates, charges or disposes of any money received or accrued in respect of which the tax is chargeable; or
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