Page 345 - SAIT Compendium 2016 Volume1

Fourth Schedule INCOME TAX ACT 58 OF 1962 Fourth Schedule
taxpayer other than a company, or the estimate of its taxable income in respect of the period contemplated in paragraph 23 (b) is submitted in terms of paragraph 19 (1) (b) by a company which is a provisional taxpayer, in respect of any year of assessment is—
(a) more than R1 million and such estimate is less than 80 per cent of the amount of the actual taxable income the
Commissioner must impose, in addition to the normal tax payable in respect of the taxpayer’s taxable income for such year of assessment, a penalty, which is deemed to be a percentage based penalty imposed under Chapter 15 of the Tax Administration Act, equal to 20 per cent of the difference between—
(i) the amount of normal tax, calculated at the rates applicable in respect of such year of assessment and after taking into account any amount of a rebate deductible in terms of this Act in the determination of normal tax payable, in respect of a taxable income equal to 80 per cent of such actual taxable income; and
(ii) the amount of employees’ tax and provisional tax in respect of such year of assessment paid by the end of the year of assessment;
[Item (a) substituted by s. 271 of Act 28 of 2011 (date of commencement: 1 October 2012), by s. 23 (a) of Act 21 of 2012 (date of commencement: 20 December 2012) and by s. 10 (1) (b) of Act 44 of 2014 – substitution comes into operation for years of assessment commencing on or after 1 March 2014.]
(b) R1 million or less and the estimate is less than 90 per cent of the amount of such actual taxable income and is also less than the basic amount applicable to the estimate in question, as contemplated in paragraph 19 (1) (d), the taxpayer shall, subject to the provisions of subparagraphs (2), (2B) and (2C), be liable to pay to the Commissioner, in addition to the normal tax payable in respect of his or her taxable income for such year of assessment, a penalty, which is deemed to be a percentage based penalty imposed under Chapter 15 of the Tax Administration Act, equal to 20 per cent of the difference between—
(i) the lesser of—
(aa) the amount of normal tax, calculated at the rates applicable in respect of such year of assessment and after
(ii)
taking into account any amount of a rebate deductible in terms of this Act in the determination of normal
tax payable, in respect of a taxable income equal to 90 per cent of such actual taxable income; and
(bb) the amount of normal tax calculated in respect of a taxable income equal to such basic amount, at the rates applicable in respect of such year of assessment and after taking into account any amount of a rebate
deductible in terms of this Act in the determination of normal tax payable; and
the amount of employees’ tax and provisional tax in respect of such year of assessment paid by the end of the year of assessment:
[Item (b) substituted by s. 271 of Act 28 of 2011 (date of commencement: 1 October 2012), by s. 23 (b) of Act 21 of 2012 (date of commencement: 20 December 2012), by s. 10 (1) (b) of Act 44 of 2014 (substitution comes into operation for years of assessment commencing on or after 1 March 2014) and by s. 17 (a) of Tax Administration Laws Act, 2015 – date of commencement: date of promulgation of Tax Administration Laws Amendment Act, 2015.]
Prelex
Wording of item (b) in force until its substitution wef date of promulgation of Tax Administration Laws Amendment Act, 2015
(b) in any other case, less than 90 per cent of the amount of such actual taxable income and is also less than the basic
amount applicable to the estimate in question, as contemplated in paragraph 19 (1) (d), the taxpayer shall, subject to the provisions of subparagraphs (2) and (3), be liable to pay to the Commissioner, in addition to the normal tax payable in respect of his or her taxable income for such year of assessment, a penalty, which is deemed to be a percentage based penalty imposed under Chapter 15 of the Tax Administration Act, equal to 20 per cent of the difference between the lesser of—
(i) the amount of normal tax, calculated at the rates applicable in respect of such year of assessment and after taking into account any amount of a rebate deductible in terms of this Act in the determination of normal tax payable, in respect of a taxable income equal to 90 per cent of such actual taxable income; and
(ii) the amount of normal tax calculated in respect of a taxable income equal to such basic amount, at the rates applicable in respect of such year of assessment and after taking into account any amount of a rebate deductible in terms of this Act in the determination of normal tax payable,
and the amount of employees’ tax and provisional tax in respect of such year of assessment paid by the end of the year of assessment:
Provided that any retirement fund lump sum bene t, retirement fund lump sum withdrawal bene t, severance bene t or any other amount contemplated in paragraph (d) of the de nition of ‘gross income’ received by or accrued to or to be received by or accrue to the taxpayer during the relevant year of assessment shall not be taken into account for purposes of this subparagraph;
[Proviso to sub-para. (1) substituted by s. 10 (1) (c) of Act 44 of 2014 – substitution comes into operation for years of assessment commencing on or after 1 March 2014.]
[Sub-para. (1) amended by s. 25 of Act 72 of 1963, substituted by s. 29 (1) of Act 88 of 1965, by s. 47 (1) (a) of Act 89 of 1969, by s. 44 of Act 88 of 1971 and by s. 51 (1) (a) of Act 85 of 1974, amended by s. 36 of Act 69 of 1975, by s. 50 of Act 94 of 1983 and by s. 39 (1) of Act 121 of 1984 and substituted by s. 19 of Act 61 of 2008 and by s. 24 (1) (a) of Act 18 of 2009 and amended by s. 23 (c) of Act 21 of 2012 (by the addition of a proviso) – date of commencement: 20 December 2012.]
(1A) . . .
[Sub-para. (1A) inserted by s. 47 (1) (b) of Act 89 of 1969 and deleted by s. 51 (1) (b) of Act 85 of 1974.]
(2) Where the Commissioner is satis ed that the amount of any estimate referred to in subparagraph (1) was seriously calculated with due regard to the factors having a bearing thereon and was not deliberately or negligently understated, or if
the Commissioner is partly so satis ed, the Commissioner may in his or her discretion remit the penalty or a part thereof. SAIT CompendIum oF TAx LegISLATIon VoLume 1 337
INCOME TAX ACT – SCHEDULES