Page 320 - SAIT Compendium 2016 Volume1

Second Schedule INCOME TAX ACT 58 OF 1962 Second Schedule (iii) the commutation of an annuity or portion of an annuity,
[Subitem (iii) added by s. 80 (1) (f) of Act 7 of 2010.] less any deduction permitted under the provisions of paragraph 5 or 6; and
[Item (a) amended by s. 80 (1) (g) of Act 7 of 2010.]
(b) any amount—
(iA) assigned in terms of a divorce order granted on or after 13 September 2007 under section 7 (8) (a) of the
Divorce Act, 1979 (Act 70 of 1979), to the extent that the amount so assigned—
(aa) constitutes a part of a pension interest, as de ned in section 1 of the Divorce Act, 1979 (Act 70 of 1979),
of a member of a pension fund, pension preservation fund, provident fund, provident preservation fund or
retirement annuity fund; and
(bb) is due and payable on or after 1 March 2012 to a person who is the former spouse of that member by that
pension fund, pension preservation fund, provident fund or provident preservation fund or retirement
annuity fund;
[Subitem (iA) substituted by s. 80 (1) (h) of Act 7 of 2010 and by s. 92 (1) (c) of Act 22 of 2012 – date of commencement deemed to have been 1 March 2012; this substitution applies in respect of amounts due and payable on or after that date.]
(iB) that is transferred for the bene t of that person to any pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund from any pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund of which that person is or previously was a member; and
(ii) other than an amount contemplated in item (a) or subitem (iA) or (iB), received by or accrued to that person by way of a lump sum bene t from or in consequence of membership or past membership of any pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund,
less any deduction permitted under paragraph 6.
(2) An amount contemplated in subparagraph (1) (b) shall be deemed to accrue to a person—
(a) in the case of an amount contemplated in subparagraph (1) (b) (iA), on the date on which the amount is due and payable as contemplated in subparagraph (1) (b) (iA) (bb); and
[Item (a) substituted by s. 92 (1) (d) of Act 22 of 2012 – date of commencement deemed to have been 1 March 2012; the substituted paragraph applies in respect of amounts due and payable on or after that date.]
(b) in the case of an amount contemplated in subparagraph (1) (b) (iB), on the date of its transfer.
[Para. 2 substituted by s. 42 of Act 28 of 1997, by s. 48 of Act 30 of 1998, by s. 47 (1) of Act 8 of 2007 and by s. 62 of Act 35 of 2007, amended by s. 37 (1) of Act 3 of 2008 and by s. 59 (1) (a) and (b) of Act 60 of 2008 and substituted by
s. 57 (1) of Act 17 of 2009.]
2A. Where any lump sum bene t is received or accrues from a public sector fund, the amount to be included in the gross income of any person in terms of paragraph (e) of the de nition of ‘gross income’ in section 1 shall be deemed to be an amount equal to the amount determined in accordance with the following formula:
A = _B_ × D C
in which formula—
(a) ‘A’ represents the amount which has to be determined; (b) ‘B’ represents—
(i) where the number of completed years of employment of a person who is or was a member of a fund are in terms of the rules of that fund taken into account for the purpose of determining the amount of a bene t payable by the fund, the number of completed years of employment of the member after 1 March 1998, including previous or other periods of service approved as pensionable service in terms of the rules of any fund after 1 March 1998, other than completed years of employment representing—
(aa) any bene t of a person who is a member of any public sector fund, which is after 1 March 1998 paid for the bene t of any person into another public sector fund in respect of any previous or other periods of service or membership accounted for prior to 1 March 1998 in terms of the rules of any public sector fund; or
(bb) years of pensionable service recognised as such in terms of Rule 10.5 or 10.6 of the Rules of the Government Employees Pension Fund, contained in Schedule 1 to the Government Employees Pension Law, 1996 (Proclamation 21 of 1996), to the extent that those years are not taken into account under item (aa); or
(ii) where the number of completed years of employment are not taken into account as contemplated in subitem (i), the number of completed years after 1 March 1998 during which the member had, until the date of accrual of any bene t, been a member of any public sector fund or funds;
(c) ‘C’ represents—
(i) where the number of completed years of employment of a person who is or was a member of a fund are in terms
of the rules of that fund taken into account for the purpose of determining the amount of the bene ts payable
to any person by the fund, the total number of completed years of employment so taken into account; or
(ii) where the number of completed years of employment are not taken into account as contemplated in subitem (i), the number of completed years during which the member had, until the date of accrual of any bene t,
continuously been a member of any public sector fund or funds; and (d) ‘D’ represents the lump sum bene t payable to the person.
[Para. 2A inserted by s. 43 (1) of Act 28 of 1997, amended by s. 49 of Act 30 of 1998, by s. 44 (1) of Act 32 of 2004 and by s. 48 (1) of Act 8 of 2007 and substituted by s. 93 (1) of Act 22 of 2012 – date of commencement deemed to have been 1 March 2012; the substituted paragraph applies in respect of amounts due and payable on or after that date.]
312 SAIT CompendIum oF TAx LegISLATIon VoLume 1