Page 145 - SAIT Compendium 2016 Volume1

s 12I
INCOME TAX ACT 58 OF 1962 s 12I
(bb)the company fails to comply with any requirement contemplated in subsection (7),*
which would have had the effect that approval in terms of subsection (8) would not have been granted had such change in fact or such failure been known to the Minister of Trade and Industry at the time of granting approval; or
(ii)the company fails to comply with any requirement contemplated in subsection (8) at the end of the compliance period;
[Para. (a) substituted by s. 22 (1) (f) of Taxation Laws Amendment Act, 2015 – date of commencement deemed to have been 8 January 2009.]
assessment where an additional investment allowance which has been allowed in any previous year must be disallowed in terms of subsection (12) or (13).
[Sub-s. (14) substituted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(15) . . .
[Sub-s. (15) deleted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(16) There shall for the purposes of this section be an adjudication committee which must consist of at least—
(a) three persons employed by the Department of Trade
and Industry, appointed by the Minister of Trade and
Industry; and
(b) three persons employed by the National Treasury or
the South African Revenue Service, appointed by the
Minister of Finance:
Provided that the Minister of Trade and Industry or the Minister of Finance, as the case may be, may appoint alternative persons so employed if any person appointed in terms of paragraph (a) or (b) is not available to perform any function as a member of the committee.
(17) The adjudication committee is an independent committee which performs its functions impartially and without fear, favour or prejudice and for the purpose of this section, the adjudication committee may—
(a) evaluate any application and make recommendations to the Minister of Trade and Industry for purposes of the approval of any industrial project in terms of subsection (8);
(b) investigate or cause to be investigated any industrial policy project for the purposes of this section;
(c) monitor all industrial policy projects—
(i) to determine whether the objectives of this
section are being achieved; and
(ii) to advise the Minister of Finance and the
Minister of Trade and Industry on any future
proposed amendment or adjustment thereof;
(d) require any company applying for approval of any industrial project as an industrial policy project in terms of this section to furnish such information or documents as are necessary for the committee and Minister of Trade and Industry to perform their
functions in terms of this section;
(e) for a speci c purpose and on such conditions and for
Prelex
Wording of para. (a) in force until its retrospective substitution, wef 8 January 2009, by s. 22 (1) (f) of Taxation Laws Amendment Act, 2015
(a) during any year of assessment—
(i) any material fact changes; or
(ii) the company fails to comply with any
requirement contemplated in subsection (7) or
(8),
which would have had the effect that approval in terms of subsection (8) would not have been granted had such change in fact or such failure been known to the Minister of Trade and Industry at the time of granting approval;
(b) the company fails to submit a report to the adjudication committee as required in terms of subsection (11); or
(c) the approval granted in terms of subsection (8) was based on fraudulent information or misrepresentation
or non-disclosure of material facts,
the Minister of Trade and Industry may, after taking into account the recommendations of the adjudication committee, withdraw the approval granted in respect of that industrial policy project with effect from a date speci ed by that Minister, and must inform the Commissioner of that withdrawal and of that date.
(13) The Commissioner may, notwithstanding the provisions of Chapter 6 of the Tax Administration Act—
[Words preceding para. (a) substituted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(a) notify the Minister of Trade and Industry whenever the Commissioner discovers information that may cause a withdrawal of approval in terms of subsection (12);
(b) disallow all deductions otherwise provided for under this section starting with the date of approval if the company is guilty of fraud or misrepresentation or non-disclosure of material facts with regard to any tax, duty or levy administered by the Commissioner and must notify the Minister of Trade and Industry accordingly; and
(c) inform the Minister of Trade and Industry where any company has requested the Commissioner to issue a certi cate contemplated in subsection (7) (b) (ii) and that certi cate was denied.
[Sub-s. (13) amended by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(14) The Commissioner may, notwithstanding the provisions of sections 99 and 100 of the Tax Administration Act, raise an additional assessment for any year of
(f)
such period as it may determine obtain the assistance of any person to advise the adjudication committee relating to any function assigned to the committee in terms of this section; and
appoint its own chairperson and determine the procedures for its meetings provided that all procedures must be properly recorded and minuted.
(18) The members of the adjudication committee 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 (17) 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.
(19) The Minister of Trade and Industry—
* In para. 22 (1) (f) of Taxation Laws Amendment Act, 2015, the words following ‘subsection (7),’ (ie ‘which would have had ...’) formed part of item (bb). It is submitted that this was an oversight by the legislature and that those words should be outdented so that they refer back to and align with both items (aa) and (bb), to correspond with the layout before the retrospective substitution.
SAIT CompendIum oF TAx LegISLATIon VoLume 1 137
INCOME TAX ACT – SECTIONS