Page 332 - SAIT Compendium 2016 Volume1

Fourth Schedule INCOME TAX ACT 58 OF 1962 Fourth Schedule
(3) An employer who has not been absolved from liability as provided in subparagraph (2) shall have a right of recovery against the employee in respect of the amount paid by the employer in terms of subparagraph (1) in respect of that employee, and such amount may in addition to any other right of recovery be deducted from future remuneration which may become payable by the employer to that employee, in such manner as the Commissioner on application in the prescribed form and manner by the employer decides.
(4) Until such time as an employee pays to his employer any amount which is due to the employer in terms of subparagraph (3), such employee shall not be entitled to receive from the employer an employees’ tax certi cate in respect of that amount.
(5) Any amount which an employer is required to pay in terms of subparagraph (1) and which the employer does not recover from the employee shall, insofar as the employer only is concerned, for the purposes of section 23 (d), be deemed to be a penalty due and payable by that employer.
[Sub-para. (5) substituted by s. 19 (c) of Act 18 of 2009.]
(6) The provisions of subparagraph (1) shall not apply in respect of any amount or any portion of any amount of
employees’ tax which an employer has failed to deduct or withhold and in respect of which the provisions of subparagraph (3) of paragraph 28 apply.
6. (1) If an employer fails to pay any amount of employees’ tax for which he or her [sic] is liable within the period allowable for payment thereof in terms of paragraph 2 SARS must in accordance with Chapter 15 of the Tax Administration Act, impose a penalty equal to ten per cent of such amount.
[Sub-para. (1) substituted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(2) . . .
[Sub-para. (2) substituted by s. 83 (1) (a) of Act 45 of 2003 and deleted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(2A) and (2B) . . .
[Sub-paras. (2A) and (2B) inserted by s. 83 (1) (b) of Act 45 of 2003 and deleted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(3) . . .
(4) . . .
[Sub-para. (4) added by s. 18 (1) of Act 34 of 2004 and deleted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
7. Any agreement between an employer and an employee whereby the employer undertakes not to deduct or withhold employees’ tax shall be void.
8. . . .
[Para. 8 repealed by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
9. (1) The Commissioner may from time to time, having regard to the rates of normal tax as xed by Parliament or foreshadowed by the Minister in his budget statement or as varied by the Minister under section 5 (3) of this Act, to the rebates applicable in terms of section 6 and section 6quat of this Act and to any other factors having a bearing upon the probable liability of taxpayers for normal tax, prescribe deduction tables applicable to such classes of employees as he may determine, and the manner in which such tables shall be applied, and the amount of employees’ tax to be deducted from any amount of remuneration shall, subject to the provisions of subparagraphs (3), (4) and (5) of this paragraph and paragraphs 10, 11 and 12, be determined in accordance with such tables or where subparagraph (3), (4) or (5) is
applicable, in accordance with that subparagraph.
[Sub-para. (1) substituted by s. 39 of Act 88 of 1971 and by s. 32 (a) of Act 103 of 1976, amended by s. 29 of Act 104 of 1980 and by s. 46 of Act 101 of 1990 and substituted by s. 55 of Act 59 of 2000 and by s. 21 (1) (a) of Act 19 of 2001.]
(2) Any tables prescribed by the Commissioner in accordance with subparagraph (1) shall come into force on such date as may be noti ed by the Commissioner in the Gazette, and shall remain in force until withdrawn by the Commissioner. (3) (a) The amount to be deducted or withheld in respect of employees’ tax from any lump sum to which paragraph (d) or (e) of the de nition of ‘gross income’ in section 1 or section 7A applies, shall be ascertained by the employer from the Commissioner before paying out such lump sum, and the Commissioner’s determination of the amount to be deducted
or withheld shall be nal.
(b) Item (a) does not apply to any amount required to be included in the gross income of any person in terms of
paragraph (e) of the de nition of ‘gross income’ and paragraph 2 (1) (b) (iB) of the Second Schedule as a result of a transaction contemplated in section 14 (1) of the Pension Funds Act, other than an amount that is transferred for the bene t of the person to any provident fund as de ned in paragraph 1 of the Second Schedule from any pension fund or pension preservation fund as de ned in that paragraph.
[Item (b) substituted by s. 8 (a) of Tax Administration Laws Amendment Act, 2015 – date of commencement: date of promulgation of Tax Administration Laws Amendment Act, 2015.]
[Sub-para. (3) been deleted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
Prelex
Wording of item (b) in force until its substitution wef date of promulgation of Tax Administration Laws Amendment Act, 2015
(b) Paragraph (a) does not apply to any amount required to be included in the gross income of any person in terms of paragraph (e) of the de nition of ‘gross income’ and paragraph 2 (1) (b) (iB) of the Second Schedule as a result of a transaction contemplated in section 14 (1) of the Pension Funds Act, 1956 (Act 24 of 1956), other than an amount that is transferred for the bene t of the person to any provident fund as de ned in paragraph 1 of the Second Schedule from any pension fund or pension preservation fund as de ned in that paragraph.
324 SAIT CompendIum oF TAx LegISLATIon VoLume 1