Page 357 - SAIT Compendium 2016 Volume1

Seventh Schedule INCOME TAX ACT 58 OF 1962 Seventh Schedule TAXABLE BENEFITS (para. 2)
2. For the purposes of this Schedule and of paragraph (i) of the de nition of ‘gross income’ in section 1 of this Act, a taxable bene t shall be deemed to have been granted by an employer to his employee in respect of the employee’s employment with the employer, if as a bene t or advantage of or by virtue of such employment or as a reward for services rendered or to be rendered by the employee to the employer—
(a) any asset consisting of any goods, commodity, nancial instrument or property of any nature (other than money)
has been acquired by the employee from the employer or any associated institution in relation to the employer or from any person by arrangement with the employer, either for no consideration or for a consideration given by the employee which is less than the value of such asset, as determined under paragraph 5 (2): Provided that the provisions of this subparagraph shall not apply in respect of—
(i) any meal, refreshment, voucher, board, fuel, power or water with which the employee has been provided as contemplated in subparagraph (c) or (d);
(ii) any marketable security acquired by the exercise by the employee, as contemplated in section 8A, of any right to acquire any marketable security;
(iii) any qualifying equity share acquired by an employee as contemplated in section 8B; or
(iv) any equity instrument contemplated in section 8C; or
[Sub-para. (a) substituted by s. 50 (1) (a) of Act 32 of 2004.]
(b) the employee has been granted the right to use any asset (other than any residential accommodation or household
goods supplied with such accommodation) for his or her private or domestic purposes either free of charge or for a consideration payable by the employee which is less than the value of such use, as determined under paragraph 6 in the case of an asset other than a motor vehicle or under paragraph 7 in the case of a motor vehicle; or
[Sub-para. (b) substituted by s. 102 (1) (a) of Act 24 of 2011 – date of commencement is deemed to have been 1 March 2011. This substituted subparagraph applies in respect of years of assessment commencing on or after that date.]
(c) the employee has been provided with any meal or refreshment or voucher entitling him to any meal or refreshment (other than any board or meals referred to in item (d)), either free of charge or for a consideration less than the value of such meal, refreshment or voucher, as the case may be, as determined under paragraph 8 (2); or
(d) the employee has been provided with residential accommodation (whether furnished or unfurnished and with or without board, meals, fuel, power or water) either free of charge or for a rental consideration payable by the employee which is less than the rental value of such accommodation as determined under the applicable provisions of paragraph 9; or
[Sub-para. (d) substituted by s. 49 of Act 28 of 1997.]
(e) any service (other than a service to which the provisions of subparagraph (j) or (k) or paragraph 9 (4) (a) apply)
has at the expense of the employer been rendered to the employee (whether by the employer or by some other person), where that service has been utilized by the employee for his or her private or domestic purposes and no consideration has been given by the employee to the employer in respect of that service or, if any consideration has been given, the amount thereof is less than the amount of the lowest fare referred to in item (a) of subparagraph (1) of paragraph 10, or the cost referred to in item (b) of that subparagraph, as the case may be; or
[Sub-para. (e) substituted by s. 55 (1) (a) of Act 31 of 2005 and by s. 102 (1) (b) of Act 24 of 2011 – date of
commencement: 1 March 2012. This substituted subparagraph applies in respect of premiums incurred on or after that date.]
(f) a debt (other than a debt for purposes of the payment by the employee of any consideration in respect of any qualifying equity share contemplated in section 8B to comply with the minimum requirements of the Companies Act or the payment of any securities transfer tax payable in respect of that share, or a debt in respect of which a subsidy is payable as contemplated in subparagraph (gA)) has been incurred by the employee, whether in favour of the employer or in favour of any other person by arrangement with the employer or any associated institution in relation to the employer, and either—
[Words in sub-para. (f) preceding item (i) substituted by s. 118 (1) (a) of Act 31 of 2013 – date of commencement: 12 December 2013.]
(i) no interest is payable by the employee in respect of such debt; or
(ii) interest is payable by the employee in respect thereof at a rate of lower than the of cial rate of interest; or
[Sub-para. (f) substituted by s. 27 (a) of Act 96 of 1985, by s. 56 of Act 101 of 1990, by s. 50 (1) (b) of Act 32 of 2004 and by s. 100 (1) (a), (b) and (c) of Act 22 of 2012 (date of commencement of para. (a) deemed to have been 8 July 2008; date of commencement of para. (b) deemed to have been 1 January 2011 and date of commencement of para. (c):
1 January 2013).]
(g) the employer has paid any subsidy in respect of the amount of interest or capital repayments payable by the employee in terms of any debt; or
[Sub-para. (g) substituted by s. 27 (b) of Act 96 of 1985 and by s. 100 (1) (c) of Act 22 of 2012 – date of commencement: 1 January 2013.]
(gA)the employer has, in respect of any debt owed by the employee to any lender, paid to such lender any subsidy, being an amount which, together with any interest payable by the employee in respect of that debt, exceeds the amount of the interest which, if calculated at the of cial rate of interest, would have been payable in respect of that debt; or
[Sub-para. (gA) inserted by s. 27 (c) of Act 96 of 1985 and substituted by s. 100 (1) (c) of Act 22 of 2012 – date of commencement: 1 January 2013.]
(h) the employer has, whether directly or indirectly, paid any debt owing by the employee to any third person (other than an amount in respect of which item (i) or (j) applies), without requiring the employee to reimburse the employer for the amount paid or the employer has released the employee from an obligation to pay any debt owing by the employee to the employer: Provided that where any debt owing by the employee to the employer has been extinguished by prescription the employer shall be deemed to have released the employee from his or
SAIT CompendIum oF TAx LegISLATIon VoLume 1 349
INCOME TAX ACT – SCHEDULES