Page 286 - SAIT Compendium 2016 Volume1

s 64B INCOME TAX ACT 58 OF 1962 s 64B
as a deduction in the determination of the taxable income of such company in terms of the provisions of that section;
(c) . . .
[Para. (c) substituted by s. 12 (1) (b) of Act 140 of 1993
and by s. 29 (1) (b) of Act 21 of 1995, amended by s. 48 (1) (d) of Act 60 of 2001 and by s. 25 of Act 30 of 2002, substituted by s. 36 (1) (c) of Act 74 of 2002 and amended by s. 58 (1) (i) and (j) of Act 45 of 2003, by s. 47 (1) (f) of Act 31 of 2005, by s. 39 (1) (a) of Act 8 of 2007 and by s. 32 (1) (b) and (c) of Act 3 of 2008 and deleted by s. 68 (1) (f) of Act 7 of 2010.]
(d) . . .
[Para. (d) substituted by s. 39 (1) (b) of Act 30 of 2000 and
by s. 36 (1) (d) of Act 74 of 2002 and deleted by s. 40 (1) (c) of Act 32 of 2004.]
(e) so much of any dividend declared by a company referred to in subsection (12) (e) during any subsequent year of assessment as contemplated in that subsection, as represents a distribution of an amount received by or accrued to such company as a result of the disposal of gold mining assets;
[Para. (e) added by s. 24 (1) (g) of Act 21 of 1994.]
(f) any dividend declared by a controlled group company as contemplated in the de nition of ‘group of companies’ which accrues to a shareholder (as
de ned in Part III) of that company if—
(i) that shareholder is a company forming part of
the same group of companies as the company
declaring the dividend;
[Sub-para. (i) substituted by s. 59 (1) (h) of Act 35 of 2007 and by s. 68 (1) (g) of Act 7 of 2010.]
(ii) . . .
[Sub-para. (ii) substituted by s. 58 (1) (l) of Act 45 of 2003 and deleted by s. 47 (1) (g) of Act 31 of 2005.]
(iii) that shareholder would be subject to secondary tax on companies should that shareholder— (aa) declare a dividend from that dividend so
declared by that company; and
(bb) not elect that this paragraph must apply in
respect of that dividend; and
[Sub-para. (iii) substituted by s. 40 (1) (d) of Act 32 of 2004.]
(iv) . . .
[Sub-para. (iv) deleted by s. 58 (1) (n) of Act 45 of 2003.] (v) the company declaring the dividend elects the exemption under this paragraph to apply by
submitting this election—
(aa)no later than the last day on which the
secondary tax on companies would other- wise be due but for this paragraph (or no later than any other subsequent date prescribed by the Commissioner); and
(bb)in such form as the Commissioner may prescribe:
Provided that this exemption shall not apply to the extent to which that dividend consists of any shares in that shareholder: Provided further that the provisions of this paragraph do not apply in respect of a dividend declared by a controlling group company to a controlled group company in relation to that controlling group company;
[Para. (f) added by s. 24 (1) (g) of Act 21 of 1994, amended by s. 29 (1) (c) of Act 21 of 1995, substituted by s. 21 (1) (e) of Act 36 of 1996 and by s. 36 (1) (e) of Act 74 of 2002 and amended by s. 58 (1) (k) and (o) of Act 45 of 2003, by s. 40 (1) (e) of Act 32 of 2004, by s. 47 (1) (h) and (i) of Act 31 of 2005, by s. 59 (1) (g) and (i) of Act 35 of 2007 and by s. 32 (1) (d) of Act 3 of 2008.]
278
(g) . . .
[Para. (g) added by s. 24 (1) (g) of Act 21 of 1994,
substituted by s. 21 (1) (f) of Act 36 of 1996 and deleted by s. 32 (1) (e) of Act 3 of 2008.]
(h) . . .
[Para. (h) added by s. 21 (1) (h) of Act 36 of 1996 and
(i)
(j)
deleted by s. 42 (1) (c) of Act 59 of 2000.]
in the case of any company which is a ‘qualifying company’ as de ned in section 37H, any dividend declared by such company during the period ending six months after the end of the last year of assessment during which such company quali es for the tax holiday status referred to in that section out of pro ts derived during the period during which such company quali es for such tax holiday status;
[Para. (i) added by s. 13 (b) of Act 46 of 1996.]
. . .
[Para. (j) added by s. 13 (b) of Act 46 of 1996, substituted by s. 39 (1) (c) of Act 30 of 2000 and deleted by s. 51 (1) (f) of Act 17 of 2009.]
(k) any dividend declared by a company to a natural person which constitutes a transfer of an interest in a residence as contemplated in paragraph 51 of the Eighth Schedule;
[Para. (k) added by s. 18 of Act 5 of 2001, deleted by s. 47 (1) (j) of Act 31 of 2005, added by s. 51 (1) (g) of Act 17 of 2009 and substituted by s. 68 (1) (i) of Act 7 of 2010.]
(kA)any dividend declared by a company which constitutes a disposal of an interest in a residence as contemplated in paragraph 51A of the Eighth Schedule; and
[Para. (kA) inserted by s. 68 (1) (j) of Act 7 of 2010.]
(l) any dividend declared by any company that is a registered micro business as de ned in the Sixth Schedule during any year of assessment during which such company is a registered micro business, to the extent that such dividend does not exceed the amount
of R200 000 during such year.
[Para. (l) added by s. 51 (1) (g) of Act 17 of 2009.] (6) . . .
[Sub-s. (6) deleted by s. 58 (1) (p) of Act 45 of 2003.] (7) The secondary tax on companies shall be paid to the Commissioner by the company liable therefore by not later than the last day of the month following the month in which the dividend cycle relevant to such dividend ends and each payment of such tax shall be accompanied by a return in such
form as the Commissioner may require: Provided that—
(i) the Commissioner may in any case extend the
applicable date of payment; and
(ii) for the purposes of this subsection the expression
‘month’ means any of the twelve portions into which
any calendar year is divided.
[Para. (ii) substituted by s. 40 (1) (f) of Act 32 of 2004.] [Sub-s. (7) amended by s. 58 (1) (q) of Act 45 of 2003.] (8) Where the Commissioner is satis ed that any amount
of secondary tax on companies has not been paid in full, he may estimate the unpaid amount and issue to the company concerned a notice of assessment of the unpaid amount.
(9) If any company fails to pay any amount of secondary tax on companies in full within the period concerned contemplated in subsection (7), interest shall be paid by such company on the balance of the tax outstanding at the prescribed rate reckoned from the end of the period concerned.
[Note: Interpretation Note 68 (Issue 2), published on 7 February 2013, indicated that, due to an oversight, Interpretation Note 68 (Issue 1), published on 14 November 2012, did not include a reference to the deletion of ss. 64B (9) and 64K (6) of Act 58 of 1962 in the list of provisions that were not supposed to
SAIT CompendIum oF TAx LegISLATIon VoLume 1