Page 294 - SAIT Compendium 2016 Volume1

s 64J INCOME TAX ACT 58 OF 1962 s 64K
reduced by the dividends declared and paid by the company on or after the effective date.
[Words following para. (b) substituted by s. 90 (1) (b) of Act 22 of 2012 – date of commencement deemed to have been 1 April 2012.]
(3) For purposes of subsections (1) (b) and (2) (b), the amount by which the STC credit of a company is reduced is deemed to be equal to an amount which bears to the dividend paid by that company to the person or company contemplated in those subsections the same ratio as the amount by which the STC credit of that company is reduced as a result of the payment of that dividend to all holders of shares in that company bears to the total dividend paid to all holders of shares.
[Sub-s. (3) substituted by s. 83 (1) (b) of Act 24 of 2011 and by s. 108 (1) (b) of Act 31 of 2013 – date of commencement: 12 December 2013.]
(4) In the determination of the STC credit of a company that is an insurer as de ned in section 29A, the amount to be taken into account in terms of subsection (2) (b) in respect of dividends accrued to that company must be limited to dividends accrued on shares constituting an asset in the corporate fund of the company.
(5) The STC credit of a company on or after the third anniversary of the effective date is deemed to be nil.
[Sub-s. (5) substituted by s. 90 (1) (c) of Act 22 of 2012 – date of commencement deemed to have been 1 April 2012.]
(6) For the purposes of this section ‘dividend’ means a dividend contemplated in paragraph (a) of the de nition of ‘dividend’ in section 64D.
[Sub-s. (6) added by s. 90 (1) (d) of Act 22 of 2012 – date of commencement deemed to have been 1 April 2012.]
(7) To the extent that any amount of dividends tax is not withheld by any person from the payment of any dividend by that person as a result of an inaccurate noti cation provided as contemplated in subsection (1) (b) by the company contemplated in that subsection, the company contemplated in that subsection is liable for that amount of dividends tax.
[Sub-s. (7) added by s. 90 (1) (d) of Act 22 of 2012 – date of commencement deemed to have been 1 April 2012.]
[S. 64J inserted by s. 56 (1) of Act 60 of 2008 and substituted by s. 53 (1) of Act 17 of 2009 – date of commencement: 1 April 2012.]
64K Payment and recovery of tax
(1) (a) If, in terms of section 64EA (a), a bene cial owner is liable for any amount of dividends tax in respect of a dividend, that bene cial owner must pay that amount to the Commissioner by the last day of the month following the month during which that dividend is paid by the company that declared the dividend, unless the tax has been paid by any other person.
(b) If, in terms of section 64EA (b), a company is liable for any amount of dividends tax in respect of a dividend, that company must pay that amount to the Commissioner by the last day of the month following the month during which that dividend is paid by the company.
(c) If, in terms of this Part, a person is required to withhold any amount of dividends tax in respect of a dividend, that person must pay that amount, less any amount refundable in terms of section 64L or 64M, to the Commissioner by the last day of the month following the month during which that dividend is paid by that person as contemplated in section 64G or 64H.
(d) . . .
[Para. (d) substituted by s. 14 of Act 21 of 2012 and by s.
2014) and deleted by s. 5 (a) of Act 44 of 2014 – date of commencement: 20 January 2015.]
[Sub-s. (1) substituted by s. 84 (1) (a) of Act 24 of 2011.] (1A) If, in terms of this Part a person has—
(a) paid a dividend; or
(b) received a dividend contemplated in paragraph (a)
of the de nition of ‘dividend’ in section 64D that is exempt or partially exempt from dividends tax in terms of section 64F or 64FA,
[Para. (b) substituted by s. 4 of Tax Administration Laws Amendment Act, 2015 – date of commencement: date of promulgation of Tax Administration Laws Amendment Act, 2015.]
that person must submit a return in respect of that dividend to the Commissioner by the last day of the month following the month during which the dividend is paid or received.
[Sub-s. (1A) inserted by s. 5 (b) of Act 44 of 2014 – date of commencement: 20 January 2015.]
(2) . . .
[Sub-s. (2) deleted by s. 84 (1) (b) of Act 24 of 2011 – date of commencement: 1 April 2012.]
(3) . . .
[Sub-s. (3) deleted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(4) Where a person—
(a) has, in terms of section 64G (3) or 64H (3), withheld
dividends tax in accordance with a reduced rate in
respect of the payment of any dividend; or
(b) that is a company which was, in terms of section 64FA (2), liable for dividends tax at a reduced rate in respect of the declaration and payment of any
dividend,
that person must submit to the Commissioner any declaration—
(i) submitted to the person by or on behalf of a bene cial owner; and
(ii) relied upon by the person in determining the amount of dividends tax so withheld,
at the time and in the manner prescribed by the Commissioner.
[Sub-s. (4) substituted by s. 84 (1) (c) of Act 24 of 2011 – date of commencement: 1 April 2012.]
(5) . . .
[Sub-s. (5) deleted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(6) If a person fails to pay any dividends tax within the required period, interest must be paid by that person on the balance of the tax outstanding at the prescribed rate reckoned from the end of that period.
[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 have come into operation on 1 October 2012 (ito paras. 54 and 55 of the Schedule to Act 28 of 2011). That mistake was recti ed in Issue 2. This means that the said deletion (of ss. 64B (9) and 64K (6)) is not yet in operation – that will come into operation on a date to be proclaimed by the President in the Gazette.]
Prelex
Wording of para. (b) in force until its substitution wef date of promulgation of Tax Administration Laws Amendment Act, 2015
(b) received a dividend that is exempt or partially
exempt from dividends tax in terms of section 64F or 64FA,
5 of Act 39 of 2013 (date of commencement: 16 January
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