Page 130 - SAIT Compendium 2016 Volume1

s 11D INCOME TAX ACT 58 OF 1962 s 11D
(11) (a) A committee must be appointed for the purposes of approving research and development under subsection (9) consisting of—
(i)three persons employed by the Department of Science and Technology, appointed by the Minister of Science and Technology;
(ii) one person employed by the National Treasury, appointed by the Minister of Finance; and
(iii) three persons from the South African Revenue Service, appointed by the Minister of Finance.
(b) The Minister of Science and Technology or the
Minister of Finance may appoint alternative persons to the committee if a person appointed in terms of paragraph (a) is not available to perform any function as a member of the committee.
(c) If any person is appointed as an alternative in terms of paragraph (a), that person may perform the function of any other person from the Department of Science and Technology, or the South African Revenue Service in respect of which institution that person is appointed as alternative.
[Para. (c) added by s. 18 (1) (h) of Act 43 of 2014 – date of commencement: 1 January 2015; the paragraph applies iro expenditure incurred iro research and development on or after that date, but before 1 October 2022.]
[Sub-s. (11) substituted by s. 3 (1) (a) of Act 9 of 2007 and by s. 1 [(1)] of Act 25 of 2011 – commencement date:
1 October 2012. See also footnote at sub-s. (18).]
(12) (a) The committee appointed in terms of subsection (11) must perform its functions impartially and without fear, favour or prejudice.
(b) The committee may—
(i) appoint its own chairperson and determine the
procedures for its meetings;
(ii) evaluate any application and make recommendations
to the Minister of Science and Technology for purposes of the approval of research and development in terms of subsection (9);
(iii) investigate or cause to be investigated research and development approved under subsection (9);
(iv) monitor all research and development approved under subsection (9)—
(aa)to determine whether the objectives of this section are being achieved; and
(bb) to advise the Minister of Finance and the Minister of Science and Technology on any future proposed amendment or adjustment of this section;
(v) for a speci c purpose and on the conditions and for the period as it may determine, obtain the assistance of any person to advise the committee relating to any function assigned to that committee in terms of this section; and
(vi) require any taxpayer applying for approval of research and development in terms of subsection (9), to furnish any information or documents necessary for the Minister of Science and Technology and the committee to perform their functions in terms of this section.
[Sub-s. (12) substituted by s. 1 [(1)] of Act 25 of 2011 – commencement date: 1 October 2012. See also footnote at sub-s. (18).]
(13) A taxpayer carrying on research and development approved under subsection (9) must report to the committee annually with respect to—
(a) the progress of that research and development; and (b) the extent to which that research and development
requires specialised skills,
within 12 months after the close of each year of assessment, starting with the year following the year in which approval is granted under subsection (9) in the form and in the
manner that the Minister of Science and Technology may prescribe.
[Sub-s. (13) substituted by s. 1 [(1)] of Act 25 of 2011 and by s. 29 (1) (o) of Act 31 of 2013 – date of commencement:
1 January 2014; the substituted paragraph applies in respect of expenditure incurred in respect of research and development on or after that date, but before 1 October 2022.]
(14) Notwithstanding Chapter 6 of the Tax Admini- stration Act, the Commissioner may disclose to the Minister of Science and Technology information in relation to research and development—
(a) as may be required by that Minister for the purposes of submitting a report to Parliament in terms of subsection (17); and
(b) if that information is material in respect of the granting of approval under subsection (9) or a withdrawal of that approval in terms of subsection (10).
[Sub-s. (14) substituted by s. 1 [(1)] of Act 25 of 2011, by s. 271 of Act 28 of 2011 and by s. 29 (1) (p) of Act 31 of 2013 (as amended by s. 123 (1) of Act 43 of 2014) – date of commencement: 1 January 2014; the substituted paragraph applies iro expenditure incurred iro research and development on or after that date, but before
1 October 2022.]
(15) The members of the committee appointed in terms of subsection (11) and any person whose assistance has been obtained by that committee may not—
(a) act in any way that is inconsistent with the provisions
of subsection (12) (a) or expose themselves to any situation involving the risk of a con ict between their responsibilities and private interests; or
(b) use their position or any information entrusted to them to enrich themselves or improperly bene t any other person.
[Sub-s. (15) substituted by s. 1 [(1)] of Act 25 of 2011 – commencement date: 1 October 2012. See also footnote at sub-s. (18).]
(16) The Minister of Science and Technology or the person appointed by the Minister of Science and Technology contemplated in subsection (9) must—
[Words preceding para. (a) substituted by s. 29 (1) (q) of Act 31 of 2013 – date of commencement: 1 January 2014; the substitution applies in respect of expenditure incurred in respect of research and development on or after that date, but before 1 October 2022.]
(a)
(b)
provide written reasons for any decision to grant or deny any application for approval of any research and development under subsection (9), or for any withdrawal of approval contemplated in subsection (10);
inform the Commissioner of the approval of any research and development under subsection (9), setting out such particulars as are required by the Commissioner to determine the amount of the deduction in terms of subsection (2) or (4); and
[Para. (b) substituted by s. 29 (1) (r) of Act 31 of 2013 – date of commencement: 1 January 2014; the substituted paragraph applies in respect of expenditure incurred in respect of research and development on or after that date, but before 1 October 2022.]
(c) inform the Commissioner of any withdrawal of approval in terms of subsection (10) and of the date on which that withdrawal takes effect.
[Sub-s. (16) substituted by s. 3 (1) (a) of Act 9 of 2007 and by s. 1 [(1)] of Act 25 of 2011 – commencement date:
1 October 2012. See also footnote at sub-s. (18).]
(17) The Minister of Science and Technology must annually submit a report to Parliament advising Parliament of the direct bene ts of the research and development in
122 SAIT CompendIum oF TAx LegISLATIon VoLume 1