Page 304 - SAIT Compendium 2016 Volume1

s 89quat INCOME TAX ACT 58 OF 1962 s 90 (b) R50 000 in the case of any person other than a company,
[Para. (b) amended by s. 2 (2) (b) of Act 8 of 2007.] and the normal tax payable by him in respect of such
taxable income exceeds the credit amount in relation to such year, interest shall, subject to the provisions of subsection (3), be payable by the taxpayer at the prescribed rate on the amount by which such normal tax exceeds the credit amount, such interest being calculated from the effective date in relation to the said year until the date of assessment of such normal tax.
(3) Where the Commissioner having regard to the circumstances of the case is satis ed that the interest payable in terms of subsection (2) is a result of circumstances beyond the control of the taxpayer, the Commissioner may direct that interest shall not be paid in whole or in part by the taxpayer.
[Sub-s. (3) substituted by s. 24 (1) of Act 36 of 1996, by s. 29 of Act 5 of 2001 and by s. 17 (1) of Act 8 of 2010.]
(3A) Where any natural person has, in respect of the year of assessment during which he for the rst time became a provisional taxpayer, become liable for the payment of interest under subsection (2), the Commissioner may, subject to the provisions of section 103 (6), if he is satis ed that the circumstances warrant such action, direct that interest shall not be paid by such person in respect of such year of assessment. [Sub-s. (3A) inserted by s. 42 (1) (d) of Act 113 of 1993 and
substituted by s. 24 (1) of Act 36 of 1996.]
(4) If in the case of any provisional taxpayer the credit amount in relation to any year of assessment exceeds the normal tax payable in respect of his taxable income as nally determined for that year and—
89quin Calculation of interest payable under this Act
(1) Where—
(a) any interest is payable under the provisions of section
88, 89, 89bis or 89quat;
[Para. (a) substituted by s. 25 of Act 36 of 1996.]
(b) the rate at which such interest is payable has with effect from any date been altered; and
(c) such interest is payable in respect of any period or any number of completed months which commenced before the said date,
the interest to be determined in respect of that portion of such period which ended immediately before the said date or in respect of any such completed months which commenced before the said date shall be calculated as if the said rate had not been so altered.
[Sub-s. (1), previously s. 89quin, inserted by s. 34 (1) of Act 121 of 1984 and renumbered by s. 15 (a) of Act 18 of 2009.]
(2) The Commissioner may prescribe by notice in the Gazette that any interest payable under this Act is calculated on the daily balance owing and compounded monthly, and such method of determining interest will apply to such tax types and from such date as the Commissioner may prescribe.
[Sub-s. (2) inserted by s. 15 (b) of Act 18 of 2009.]
89sex . . .
[S. 89sex inserted by s. 33 of Act 28 of 1997, substituted by s. 75 of Act 45 of 2003 and repealed by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
89sept . . .
[S. 89sept inserted by s. 11 of Act 61 of 2008 and repealed by s. 271 of Act 28 of 2011 – date of commencement:
1 October 2012.]
90 Persons by whom normal tax payable
Subject to the provisions of this Act and the Tax Administration Act, any normal tax is payable by the person by whom any taxable income is received or to whom or in whose favour it accrues or who is legally entitled to the receipt thereof: Provided that any person may recover so much of the tax paid by him under this Act as is due to the inclusion in— [Words preceding the proviso in s. 90 substituted by s. 271 of
Act 28 of 2011 – date of commencement: 1 October 2012.]
(i) his income of any income deemed to have been received by him or to be his income, as the case may be, in terms of section 7 (3), (4), (5), (6), (7) or (8), from the person entitled, whether on his own behalf or in a representative
capacity, to the receipt of the income so included; or
(ii) his taxable income of any capital gain in terms of paragraph 68, 69, 70, 71 or 72 of the Eighth Schedule from the person entitled, whether personally or in a representative capacity, to the proceeds on the disposal of the asset, as contemplated in the Eighth
(a) (b)
the amount of that excess exceeds R10 000; or
[Para. (a) amended by s. 2 (2) (b) of Act 8 of 2007.] such taxable income exceeds—
(i) R20 000 in the case of a company; or
[Sub-para. (i) amended by s. 2 (2) (b) of Act 8 of 2007.] (ii) R50 000 in the case of any person other than a
company,
[Sub-para. (ii) amended by s. 2 (2) (b) of Act 8 of 2007.] [Para. (b) substituted by s. 43 (1) of Act 8 of 2007.] interest shall be payable to the taxpayer at the prescribed rate on the difference between the credit amount and such normal tax, such interest being calculated from the effective date in relation to the said year until the date on which such difference is refunded to the taxpayer: Provided that where any interest is payable to the taxpayer on any amount in respect of any period in terms of the provisions of section 88, no interest shall be payable to the taxpayer in terms of the provisions of this subsection in
respect of the said amount and period.
[Sub-s. (4) amended by s. 18 (1) of Act 70 of 1989 and by s. 42 (1) (e) of Act 113 of 1993.]
(5) Any decision of the Commissioner in the exercise of his discretion under subsection (3) or (3A) shall be subject to objection and appeal.
[Sub-s. (5) added by s. 42 (1) (f) of Act 113 of 1993.]
(6) The payment by the Commissioner of any interest under the provisions of this section shall be deemed to be a drawback
from revenue charged to the National Revenue Fund.
[Sub-s. (6) added by s. 15 (1) of Act 140 of 1993 and amended by s. 41 of Act 36 of 1996.]
[S. 89quat inserted by s. 46 of Act 85 of 1974, repealed by s. 37 of Act 94 of 1983, inserted by s. 34 (1) of Act 121 of 1984 and substituted by s. 22 (1) of Act 65 of 1986.]
Schedule, which gave rise to the capital gain:
296 SAIT CompendIum oF TAx LegISLATIon VoLume 1
(2) S. 18 (1) of Act 8 of 2007 proposed several amendments to s. 89quat. However, the said s. 18 (1), which was to have come into operation on a date to be proclaimed by the Minister, was repealed by s. 271 of Act 28 of 2011 (see para. 181 of Schedule 1 to that Act) wef 1 October 2012.]
Pendlex
[NB: S. 89quin has been repealed by s. 271 of the Tax Administration Act 28 of 2011, a provision that will be put into operation by proclamation.]
Pendlex
[NB: (1) S. 89quat has been repealed by s. 271 of the Tax Administration Act 28 of 2011, a provision that will be put into operation by proclamation.