Page 123 - SAIT Compendium 2016 Volume1

s 11 INCOME TAX ACT 58 OF 1962 s 11
of 2013 (as substituted by s. 122 (1) (a) of Act 43 of 2014 wef 1 March 2016) – date of commencement: 1 March 2016 (‘1 March 2015’ replaced by ‘1 March 2016’ by s. 122 (1) (b) of Act 43 of 2014).]
Prelex
Wording of para. (k) in force until 1 March 2016
(k) (i) any sum contributed during the year of
assessment to any pension fund by way of current contribution by a person who holds any of ce or employment: Provided that a partner in a partnership must for purposes of this subparagraph be deemed to be an employee of the partnership: Provided further that the total deduction to be allowed in respect of contributions by such person to any one or more pension fund or funds shall not in the year of assessment exceed the greater of R1 750 or 7,5 per cent of the remuneration (being the income or part thereof referred to in the de nition of ‘retirement-funding employment’ in section 1) derived by such person during such year in respect of his or her retirement- funding employment;
[Sub-para. (i) substituted by s. 5 (a) of Act 101 of 1978, amended by s. 8 (1) (a) of Act 104 of 1979 and by s. 9 (1) (c) of Act 96 of 1981, substituted by s. 10 (1) (i) of Act 94 of 1983 and amended by s. 30 (1) of Act 30 of 1998, by s. 2 (2) (b) of Act 8 of 2007 and by s. 1 (2) (c) of Act 3 of 2008 and substituted by s. 10 (1) (b) of Act 3 of 2008.]
(ii) any sum paid during the year of assessment to any pension fund by any person who, as a member of such fund, has in terms of the rules governing such fund undertaken to pay such sum in respect of any past period which is to be reckoned as pensionable service of that member: Provided that—
(aa) the deduction to be allowed in respect of any sums so paid (other than a sum paid by a ‘former member of a nonstatutory force or service’ as de ned in the Government Employees’ Pension Law, 1996 (Proclamation 21 of 1996), in terms of rule 11.9.2.1 of the rules of the Government Employees’ Pension Fund contained in Schedule 1 to that Proclamation) shall not in the year of assessment exceed the sum of R1 800;
[Item (aa) amended by s. 11 (1) (e) of Act 121 of 1984, substituted by s. 18 (d) of Act 31 of 2005 and amended by s. 2(2)(b)ofAct8of2007andbys.1(2)(c)ofAct3of2008.]
(bb) any amount, being a portion of a sum so paid, which has been disallowed solely by reason of the fact that it exceeds the amount of the deduction allowable in respect of the year of assessment shall be carried forward and be deemed for the purposes of this paragraph to be a sum so paid in the next succeeding year of assessment;
[Item (bb) added by s. 9 (1) (e) of Act 96 of 1981.] (cc) the provisions of this subparagraph shall apply for the purpose of determining the taxpayer’s total taxable income for any year of assessment ended or ending on or after 28 February 1981 whether such taxable income is derived from the
carrying on of any trade or otherwise;
[Item (cc) added by s. 10 (1) (j) of Act 94 of 1983.]
(l) any amount contributed by a person that is an employer during the year of assessment for the bene t of any employee or former employee of the employer or for any dependant or nominee of a deceased employee or former employee of that employer to any pension fund, provident fund or retirement annuity fund in terms of the rules of that fund: Provided that for the purposes of this paragraph a partner in a partnership must be deemed to be an employee of the partnership and a partnership must be deemed to be the employer of the partners in that partnership; and
[Para. (l) substituted by s. 8 (1) (b) of Act 104 of 1979, amended by s. 10 (1) (k) of Act 94 of 1983, by s. 30 (1) (b) of Act 30 of 1998, by s. 10 (1) (c) of Act 3 of 2008 and by s. 271 of Act 28 of 2011 and substituted by s. 27 (1) (l) of Act 31 of 2013 – date of commencement: 1 March 2016 (‘1 March 2015’ replaced by ‘1 March 2016’ by s. 122 (1) (b) of Act 43 of 2014); substitution applies iro amounts contributed on or after that date.]
Prelex
Wording of para. (l) in force until 1 March 2016
(l) any sum contributed by an employer during the
year of assessment for the bene t of his employees to any pension fund, provident fund or bene t fund (other than a fund contemplated in paragraph (a) of the de nition of ‘bene t fund’): Provided that—
(i) in respect of any lump sum contribution, the Commissioner may determine that the said sum shall be deducted in a series of annual instalments, so that only a portion thereof is deducted in the year of assessment in which it is contributed, and the residue in such subsequent years of assessment and in such proportions as the Commissioner may determine, until the contribution is extinguished;
(ii) if the contributions (including any lump sum payments) made by the employer in respect of any employee during any year of assessment to such funds exceed an amount equal to ten per cent of the approved remuneration of such employee for such year of assessment, and the Commissioner is satis ed that the aggregate of such contributions and the total remuneration accrued during such year of assessment to such employee in respect of his employment by the employer is excessive or unjusti able in relation to the value of the services rendered by such employee to the employer, and having regard to other bene ts, if any, derived by him from his employment by the employer, only so much of such contribution as appears to the Commissioner to be reasonable, but not less than an amount equal to ten per cent of the approved remuneration of such employee for such year of assessment, shall be allowed to be deducted under this paragraph;
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(dd) no deduction shall be made under this paragraph in respect of so much of any amount carried forward in terms of paragraph (bb) of this proviso as has been accounted for under paragraph 5 (1) (a) or 6 (1) (b) (i) of the Second Schedule;
[Item (dd) added by s. 10 (1) (j) of Act 94 of 1983 and substituted by s. 14 (1) (h) of Act 17 of 2009 and by s. 27 (1) (j) of Act 31 of 2013 – date of commencement deemed to have been 1 March 2013; the substitution applies iro amounts received or accrued on or after that date.]
INCOME TAX ACT – SECTIONS