Page 321 - SAIT Compendium 2016 Volume1

Second Schedule INCOME TAX ACT 58 OF 1962 Second Schedule
2B . . .
[Para. 2B inserted by s. 42 (1) of Act 53 of 1999, amended by s. 64 (1) of Act 60 of 2001, by s. 45 of Act 32 of 2004, by s. 63 (1) of Act 35 of 2007, by s. 38 of Act 3 of 2008, by s. 60 of Act 60 of 2008 and by s. 58 of Act 17 of 2009 and repealed by s. 94 (1) of Act 22 of 2012 – date of commencement deemed to have been 1 March 2012.]
2C. Any lump sum bene t, or part thereof, received by or accrued to a person subsequent to the person’s retirement or death, or withdrawal or resignation from any pension fund, pension preservation fund, provident fund, provident preserva- tion fund or retirement annuity fund or the winding up of any such fund, and in consequence of or following upon an event* that is prescribed by the Minister by notice in the Gazette and contemplated by the rules of any such fund or the approval of a scheme in terms of section 15B of the Pension Funds Act or paragraph 5.3 (1) (b) of the Schedule which amends regulation 30 of the Regulations under the Long-term Insurance Act shall not constitute gross income of that person.
[Para. 2C inserted by s. 48 (1) of Act 8 of 2007 and substituted by s. 39 of Act 3 of 2008, by s. 61 of Act 60 of 2008, by s. 90 of Act 24 of 2011 and by s. 111 of Act 31 of 2013 – date of commencement: 12 December 2013.]
3. Any lump sum bene t which becomes recoverable from—
(a) a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund;
or
(b) an insurer as de ned in section 29A (1) if that lump sum bene t is payable by, or provided in consequence of
membership or past membership of, a fund contemplated in subparagraph (a),
in consequence of or following upon the death of a person who is or was a member of that fund must, on the date of payment of that lump sum bene t, be deemed to have accrued to that person immediately prior to the death of that person: Provided that—
[Words after sub-para. (b) and before the proviso substituted by s. 95 (1) (a) of Act 22 of 2012 – date of commencement deemed to have been 1 March 2012; the substitution applies in respect of amounts due and payable on or after that date.]
(i) so much of any tax payable as is due to the provisions of this paragraph may be recovered from the person by whom the lump sum bene t in question is received;
(ii) where any annuity or portion of an annuity (including a living annuity) which becomes payable on or in consequence of or following upon the death of a person who is or was a member of any such fund has been commuted for a lump sum, such lump sum shall for the purposes of this paragraph be deemed to be a lump sum bene t which has become recoverable in consequence of or following upon the death of such person;
[Para. (ii) of the proviso substituted by s. 95 (1) (b) of Act 22 of 2012 – date of commencement deemed to have been 1 March 2012; the substitution applies in respect of amounts due and payable on or after that date.]
(iii) where any such lump sum bene t becomes payable but the dependants or nominees of that person elect an annuity (including a living annuity) that is purchased or provided by that fund, no lump sum bene t shall be deemed to have so accrued to the extent that the lump sum bene t was utilised to purchase or provide the annuity; and
[Para. (iii) of the proviso substituted by s. 95 (1) (b) of Act 22 of 2012 – date of commencement deemed to have been 1 March 2012; the substitution applies in respect of amounts due and payable on or after that date.]
(iv) .. .
[Sub-para. (iv) omitted by s. 81 (1) (c) of Act 7 of 2010.]
(v) where any such lump sum bene t is paid to a pension preservation fund or provident preservation fund as
an unclaimed bene t as de ned in the Pension Funds Act, no lump sum bene t shall be deemed to have so
accrued.
[Para. (v) of the proviso substituted by s. 83 of Taxation Laws Amendment Act, 2015 (‘, 1956 (Act 24 of 1956)’ deleted) – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
3A. Any lump sum bene t which becomes recoverable from—
(a) a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund;
or
(b) an insurer as de ned in section 29A (1) if that lump sum bene t is payable by or provided in consequence of
membership or past membership of a fund contemplated in subparagraph (a),
in consequence of or following upon the death of any person other than a person who is or was a member of that fund shall, on the date of payment of that lump sum bene t, be deemed to have accrued to the deceased person immediately prior to the death of that person: Provided that—
[Words after sub-para. (b) and before the proviso substituted by s. 96 (1) (a) of Act 22 of 2012 – date of commencement deemed to have been 1 March 2012; the substitution applies in respect of amounts due and payable on or after that date.]
* GN 289 in GG 32005 of 11 March 2009 prescribes that an ‘event’ is—
(a) any amount received by or accrued to a person from a pension fund, pension preservation fund, provident fund,
provident preservation fund or retirement annuity fund in consequence of a payment to such fund by the administrator of such fund as a result of income received by the administrator prior to 1 January 2008 that was not disclosed to such funds;
(b) any amount received by or accrued to a person from a pension fund or provident fund contemplated in paragraph (a) or (b) of the de nition of ‘pension fund’ in section 1 of the Income Tax Act, 1962 to the extent that that amount is similar to a payment in terms of a surplus apportionment scheme contemplated in section 15B of the Pension Funds Act, 1956 (Act 24 of 1956);
(c) any amount received by or accrued to a person from a pension preservation fund or provident preservation fund to the extent that it was paid or transferred to such a fund–
(i) as an unclaimed bene t contemplated in paragraph (c) of the de nition of ‘unclaimed bene t’ in section 1 of the Pension Funds Act, 1956 (Act 24 of 1956); or
(ii) as a result of or in consequence of an event contemplated in paragraph (a) of this notice.
SAIT CompendIum oF TAx LegISLATIon VoLume 1 313
INCOME TAX ACT – SCHEDULES