Page 338 - SAIT Compendium 2016 Volume1

Fourth Schedule INCOME TAX ACT 58 OF 1962 Fourth Schedule
Prelex
Wording of para. (i) of the proviso in force until its deletion wef date of promulgation of Tax Administration Laws Amendment Act, 2015
(i) the balance of remuneration determined in respect of the last year of assessment of a director which ended on or
before 28 February 2002, shall, for the purposes of paragraph (b), be determined on an amount which would, but for the provisions of paragraph (vii) of the de nition of ‘remuneration’, have constituted remuneration under that de nition;
(ii) where the remuneration paid or payable to that director in respect of—
(aa) the last year of assessment, contemplated in paragraph (b), has not yet been determined—
(A) ‘T’ shall be determined based on the balance of remuneration paid or payable by that company to that director in respect of the year of assessment preceding that last year of assessment, increased by an amount equal to 20 per cent (or such other percentage as the Minister may from time to time determine by notice in the Gazette) of that remuneration; and;
[Subitem (A) substituted by s. 85 (1) (a) of Act 45 of 2003.]
(B) ‘N’ shall represent the number of completed months which that director was employed by that company
during that preceding year of assessment; or
(bb) the preceding year of assessment, contemplated in subitem (aa), has not yet been determined, the company
must request the Commissioner to determine the amount of remuneration which is deemed to have been
received for the purpose of this subparagraph.
(2) Subject to subparagraph (6), every private company shall on a monthly basis, in respect of every director of that
company, pay to the Commissioner an amount determined in accordance with subparagraph (3), which shall for the purposes of section 90 of the Act, paragraphs 1, 4, 6, 11, 13 and 14 and Parts III and IV of this Schedule and Chapters 8, 12 and 13 of the Tax Administration Act, be deemed to be an amount of employees’ tax which was required to be deducted or withheld by the company as an employer in terms of paragraph 2 of this Schedule.
[Sub-para. (2) substituted by s. 85 (1) (b) of Act 45 of 2003 and by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(3) The amount of employees’ tax to be paid by the private company to the Commissioner in terms of subparagraph (2) in respect of any director shall be determined in accordance with paragraph 9, 10 or 11 in respect of an amount of remuneration deemed to have been received by that director as contemplated in subparagraph (1).
(4) A company shall have a right of recovery against a director in respect of any amount paid by that company in terms of subparagraph (2), in respect of that director and that amount may, in addition to any other right of recovery, be deducted from any amount which is or may become payable by that company to that director.
[Sub-para. (4) substituted by s. 85 (1) (c) of Act 45 of 2003.]
(5) . . .
[Sub-para. (5) deleted by s. 10 of Act 39 of 2013 – date of commencement: 12 December 2013.]
(6) Subparagraph (2) does not apply to a private company in respect of a director where more than 75 per cent of the amount contemplated in ‘T’ in subparagraph (1) (b) in respect of the last year of assessment of that director as contemplated in ‘T’,
represents xed monthly payments of remuneration paid by that company to that director during that year of assessment.
[Sub-para. (6) added by s. 85 (1) (d) of Act 45 of 2003.] [Para. 11C inserted by s. 22 (1) of Act 19 of 2001.]
12. . . .
[Para. 12 amended by s. 42 of Act 90 of 1988, by s. 48 of Act 101 of 1990 and by s. 47 of Act 129 of 1991, deleted by s. 41 of Act 21 of 1995, inserted by s. 43 of Act 53 of 1999, amended by s. 15 of Act 61 of 2008 and by s. 21 of Act 8 of 2010 and repealed by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
12A. . . .
(1) Subject to the provisions of paragraphs 5, 14 (5) and 28, every employer who during any period contemplated in subparagraph (1A) deducts or withholds any amount by way of employees’ tax as required by paragraph 2 shall within the time allowed by subparagraph (2) of this paragraph deliver to each employee or former employee to whom remuneration has during the period in question been paid or become due by such employer, an employees’ tax certi cate in such form as the Commissioner may prescribe or approve, which shall show the total remuneration of such employee or former employee and the sum of the amounts of employees’ tax deducted or withheld by such employer from such remuneration during the said period, excluding any amount of remuneration or employees’ tax included in any other employees’ tax certi cate issued by such employer unless such other certi cate has been surrendered to such employer by the employee or former employee and has been cancelled by such employer and dealt with by the employer as provided in subparagraph (10).
[Sub-para. (1)* amended by s. 24 (a) of Act 72 of 1963 and substituted by s. 49 (a) of Act 101 of 1990, by s. 23 (1) of
Act 19 of 2001 and by s. 12 (a) of Tax Administration Laws Amendment Act, 2015 (‘11C (5)’ replaced by ‘14 (5)’ and ‘dealt with by him’ replaced by ‘dealt with by the employer’) – date of commencement: date of promulgation of Tax Administration Laws Amendment Act, 2015.]
* Sub-para. (1) was also substituted by s. 21 (1) (a) of Act 4 of 2008 (insertion of ‘14 (5)’, a provision which was to have come into operation on a date to be announced by the Minister). It would appear that that substitution now forms part of the subparagraph as substituted by s. 12 (a) of Tax Administration Laws Amendment Act, 2015, and that there is therefore no longer a reason why the said s. 21 (1) (a) should enter into force.
330 SAIT CompendIum oF TAx LegISLATIon VoLume 1
[Para. 12A inserted by s. 49 of Act 113 of 1993 and deleted by s. 42 of Act 21 of 1995.]
FURNISHING AND OBTAINING OF EMPLOYEES’ TAX CERTIFICATES (para. 13)