Page 344 - SAIT Compendium 2016 Volume1

Fourth Schedule INCOME TAX ACT 58 OF 1962 Fourth Schedule
(ii) as respects an estimate submitted by a company under item (b), the company’s taxable income, as assessed by the Commissioner, for the latest preceding year of assessment in relation to such estimate, less the amount of any taxable capital gain included therein in terms of section 26A:
[Subitem (ii) substituted by s. 49 (c) of Act 94 of 1983 and by s. 37 of Act 5 of 2001.]
[Subitem (iii) deleted by s. 49 (d) of Act 94 of 1983, added by s. 52 (1) (a) of Act 101 of 1990 and deleted by s. 44 (c) of
Act 21 of 1995.]
Provided that, if an estimate under item (a) or (b) must be made more than 18 months after the end of the latest preceding year of assessment in relation to such estimate, the basic amount determined in terms of subitems (i) and (ii) shall be increased by an amount equal to eight per cent per annum of that amount, from the end of such year to the end of the year of assessment in respect of which the estimate is made.
[Proviso to item (d) substituted by s. 9 (1) (b) of Act 44 of 2014 – substitution comes into operation for years of assessment commencing on or after 1 March 2015.]
[Item (d) amended by s. 18 of Act 61 of 2008, by s. 23 of Act 18 of 2009 and by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(e) For the purposes of item (d), the latest preceding year of assessment in relation to any estimate under this paragraph shall be deemed to be the latest of the years of assessment—
(i) preceding the year of assessment in respect of which the estimate is made; and
(ii) in respect of which a notice of assessment relevant to the estimate has been issued by the Commissioner not less
than 14 days before the date on which the estimate is submitted to the Commissioner.
[Subitem (ii) amended by s. 52 (1) (b) of Act 101 of 1990 and by s. 87 of Act 45 of 2003, by s. 271 of Act 28 of 2011 (date of commencement: 1 October 2012) and by s. 9 (1) (c) of Act 44 of 2014 (proviso deleted) – substitution comes into operation for years of assessment commencing on or after 1 March 2015.]
[Sub-para. (1) substituted by s. 28 (1) of Act 88 of 1965, by s. 46 (1) of Act 89 of 1969 and by s. 50 (1) (a) of Act 85 of 1974.]
(1A) . . .
[Sub-para. (1A) inserted by s. 43 (1) of Act 88 of 1971 and deleted by s. 49 (e) of Act 94 of 1983.]
(2) If any provisional taxpayer fails to submit any estimate as required by subparagraph (1), the Commissioner may
estimate the taxable income which is required to be estimated.
[Sub-para. (2) substituted by s. 50 (1) (b) of Act 85 of 1974 and by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(3) The Commissioner may call upon any provisional taxpayer to justify any estimate made by the provisional taxpayer in terms of subparagraph (1), or to furnish particulars of the provisional taxpayer’s income and expenditure or any other particulars that may be required, and, if the Commissioner is dissatis ed with the said estimate, he or she may increase the amount thereof to such amount as he or she considers reasonable, which increase of the estimate is not subject to objection and appeal.
[Sub-para. (3) substituted by s. 271 of Act 28 of 2011 (date of commencement: 1 October 2012) and by s. 16 (b) of Tax Administration Laws Amendment Act, 2015 – date of commencement: date of promulgation of Tax Administration Laws Amendment Act, 2015.]
(4) . . .
[Sub-para. (4) deleted by s. 50 (1) (c) of Act 85 of 1974.]
(5) Any estimate or increase made by the Commissioner under the provisions of subparagraph (2) or (3) shall be
deemed to take effect in respect of the relevant period within which the provisional taxpayer is required to make any payment of provisional tax in terms of this Part.
[Sub-para. (5) substituted by s. 16 (c) of Tax Administration Laws Amendment Act, 2015 – date of commencement: date of promulgation of Tax Administration Laws Amendment Act, 2015.]
PENALTY FOR UNDERPAYMENT OF PROVISIONAL TAX AS A RESULT OF UNDERESTIMATION
(para. 20)
[Heading substituted by s. 271 of Act 28 of 2011 (date of commencement: 1 October 2012) and by s. 10 (1) (a) of Act 44 of 2014 – substitution comes into operation for years of assessment commencing on or after 1 March 2014.]
20. (1) If the actual taxable income, as nally determined under this Act, for the year of assessment in respect of which the nal or last estimate of his or her taxable income is submitted in terms of paragraph 19 (1) (a) by a provisional
336 SAIT CompendIum oF TAx LegISLATIon VoLume 1
(iii) . . .
Prelex
Wording of sub-para. (3) in force until its substitution wef date of promulgation of Tax Administration Laws Amendment Act, 2015
(3) The Commissioner may call upon any provisional taxpayer to justify any estimate made by him or her in terms of subparagraph (1), or to furnish particulars of his or her income and expenditure or any other particulars that may be required, and, if the Commissioner is dissatis ed with the said estimate, he or she may increase the amount thereof to such amount as he or she considers reasonable.
Prelex
Wording of sub-para. (5) in force until its substitution wef date of promulgation of Tax Administration Laws Amendment Act, 2015
(5) Any estimate made by the Commissioner under the provisions of subparagraph (2) or (3) shall be deemed to take effect in respect of the relevant period within which the provisional taxpayer is required to make any payment of provisional tax in terms of this Part, or within any extension of such period granted in terms of subparagraph (2) of paragraph 25.