Page 334 - SAIT Compendium 2016 Volume1

Fourth Schedule INCOME TAX ACT 58 OF 1962 Fourth Schedule
(b) any gain made from the disposal of any qualifying equity share as contemplated in section 8B; or
[Item (b) substituted by s. 51 (1) (a) of Act 31 of 2005.]
(c) any amount referred to in section 8C which is required to be included in the income of that employee,
the amount of that gain or that amount must for the purposes of this Schedule be deemed to be an amount of remuneration which is payable to that employee by the person by whom that right was granted or from whom that equity instrument or qualifying equity share was acquired, as the case may be.
[Item (c) and the words following it substituted by s. 9 of Tax Administration Laws Amendment Act, 2015 – date of commencement: date of promulgation of Tax Administration Laws Amendment Act, 2015.]
(2) Employees’ tax in respect of the amount of remuneration contemplated in subparagraph (1) must, unless the Commissioner has granted authority to the contrary, be deducted or withheld by that person from any consideration paid or payable by him or her to that employee in respect of the cession, or release of that right or the disposal of that equity instrument or qualifying equity share, as the case may be, or from any cash remuneration paid or payable by that person to that employee after that right has to the knowledge of that person been exercised, ceded or released or that equity instrument has to the knowledge of that person vested or that qualifying equity share has to the knowledge of that person been disposed of: Provided that where that person is an ‘associated institution’, as de ned in paragraph 1 of the Seventh Schedule, in relation to any employer who pays or is liable to pay to that employee any amount by way of remuneration during the year of assessment during which the gain contemplated in subparagraph (1) arises; and—
(i) is not resident nor has a representative employer; or
(ii) is unable to deduct or withhold the full amount of employees’ tax during the year of assessment during which
the gain arises, by reason of the fact that the amount to be deducted or withheld from that employee by way of
employees’ tax exceeds the amount from which the deduction or withholding can be made,
that person and that employer must deduct or withhold from the remuneration payable by them to that employee during that year of assessment an aggregate amount equal to the employees’ tax payable in respect of that gain and shall be jointly and severally liable for that employees’ tax.
[Sub-para. (2) substituted by s. 67 (c) of Act 35 of 2007 and amended by s. 67 (d) of Act 35 of 2007 and by s. 19 of Act 8 of 2010.]
(3) The provisions of this Schedule apply in relation to the amount of employees’ tax deducted or withheld under subparagraph (2) as though that amount had been deducted or withheld from the amount of the gain referred to in
subparagraph (1).
[Sub-para. (3) substituted by s. 51 (1) (c) of Act 31 of 2005.]
(4) Before deducting or withholding employees’ tax under subparagraph (2) in respect of remuneration contemplated
in subparagraph (1) (a) or (c), that person and that employer must ascertain from the Commissioner the amount to be so
deducted or withheld.
[Sub-para. (4) substituted by s. 67 (d) of Act 35 of 2007.]
(5) If that person and that employer are, by reason of the fact that the amount to be deducted or withheld by way of
employees’ tax exceeds the amount from which the deduction or withholding is to be made, unable to deduct or withhold the full amount of employees’ tax during the year of assessment during which the gain arises, they must immediately notify the Commissioner of the fact.
[Sub-para. (5) substituted by s. 51 (1) (d) of Act 31 of 2005 and by s. 67 (d) of Act 35 of 2007.]
(6) Where an employee has under any transaction to which neither that person nor that employer is a party made any gain or an employee has disposed of any qualifying equity share as contemplated in subparagraph (1), that employee
must immediately inform that person and that employer thereof and of the amount of that gain.
[Sub-para. (6) substituted by s. 51 (1) (e) of Act 31 of 2005 and by s. 67 (d) of Act 35 of 2007.]
(7) Any employee who without just cause shown by him or her fails to comply with the provisions of subparagraph
(6), shall be guilty of an offence and liable on conviction to a ne not exceeding R2 000.
[Para. 11A inserted by s. 45 of Act 89 of 1969, amended by s. 47 of Act 28 of 1997 and substituted by s. 19 of Act 34 of 2004.]
STANDARD INCOME TAX ON EMPLOYEES (para. 11B) [Heading inserted by s. 41 of Act 90 of 1988.]
11B. . . .
[Paragraph 11B inserted by s. 41 of Act 90 of 1988 and amended by s. 22 of Act 70 of 1989, by s. 47 of Act 101 of 1990, by s. 46 of Act 129 of 1991, by s. 34 (1) of Act 141 of 1992, by s. 3 of Act 168 of 1993, by s. 40 of Act 21 of 1995, by s. 35 of Act 36 of 1996, by s. 48 of Act 28 of 1997, by s. 53 (1) of Act 30 of 1998, by s. 56 (1) of Act 59 of 2000, by s. 33 (1) of Act 30 of 2002, by s. 56 (1) of Act 74 of 2002, by s. 22 of Act 16 of 2004, by s. 43 of Act 20 of 2006, by ss. 2 (2) (b) and 57 (1) of Act 8 of 2007, by ss. 1 (2) (c) and 44 (1) of Act 3 of 2008, by s. 70 (1) of Act 60 of 2008, by s. 20 of Act 8 of 2010, by s. 271 of Act 28 of 2011, by s. 9 of Act 39 of 2013, and repealed by s. 10 (1) of Tax Administration Laws Amendment Act, 2015 – date of commencement: 1 March 2016; the repeal applies iro years of assessment commencing on or after that date.]
326 SAIT CompendIum oF TAx LegISLATIon VoLume 1
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Wording of item (c) and the words following it in force until the substitution thereof wef date of promulgation of Tax Administration Laws Amendment Act, 2015
(c) any gain made as a result of the vesting of any equity instrument as contemplated in section 8C,
the amount of that gain must for the purposes of this Schedule be deemed to be an amount of remuneration which is payable to that employee by the person by whom that right was granted or from whom that equity instrument or qualifying equity share was acquired, as the case may be.