Page 358 - SAIT Compendium 2016 Volume1

Seventh Schedule INCOME TAX ACT 58 OF 1962 Seventh Schedule
her obligation to pay the amount of such debt if the employer could have recovered the debt owing or caused the running of the prescription to be interrupted, unless the employer’s failure to recover the debt owing or to cause the running of the prescription to be interrupted was not due to any intention of the employer to confer a bene t on the employee; or
[Sub-para. (h) amended by s. 27 (d) of Act 96 of 1985 and by s. 55 (1) (b) of Act 31 of 2005, substituted by s. 100 (1) (c) of Act 22 of 2012 and by s. 94 of Taxation Laws Amendment Act, 2015 – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
Prelex
Sub-para. (h) in force until its substitution wef date of promulgation of Taxation Laws Amendment Act, 2015 (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 her obligation to pay the amount of such debt if the employer could have recovered the debt owing or caused the running of the prescription to be interrupted, unless it is shown to the satisfaction of the Commissioner that the employer’s failure to recover the debt owing or to cause the running of the prescription to be interrupted was not due to any intention of the employer to confer a bene t on the employee; or
(i) the employer has during any period directly or indirectly made any contribution or payment to any fund contemplated in paragraph (b) of the de nition of ‘bene t fund’ in section 1 for the bene t of any employee or the dependants of any employee; or
[Sub-para. (i) added by s. 54 (1) (b) of Act 30 of 1998 and substituted by s. 55 (1) (c) of Act 31 of 2005 and by s. 64 (1) of Act 17 of 2009.]
(j) the employer has, directly or indirectly, incurred any amount (other than a contribution or payment contemplated in item (i)) in respect of any medical, dental and similar services, hospital services, nursing services or medicines provided to the employee or his or her spouse, child, relative or dependant; or
[Sub-para. (j) added by s. 55 (1) (d) of Act 31 of 2005.]
(k) the employer has made any payment to any insurer under an insurance policy directly or indirectly for the bene t
of the employee or his or her spouse, child, dependant or nominee: Provided that this paragraph shall not apply in respect of an insurance policy that relates to an event arising solely out of and in the course of employment of the employee; or
[Sub-para. (k) added by s. 102 (1) (c) of Act 24 of 2011, amended by s. 100 (1) (d) of Act 22 of 2012 (date of
commencement: 1 March 2013; the amendment applies iro payments made during years of assessment commencing on or after that date) and substituted by s. 118 (1) (b) of Act 31 of 2013 – substitution deemed to have come into operation on 1 March 2013 and applies iro payments made during years of assessment commencing on or after that date.]
(l) the employer has made any contribution for the bene t of any employee to any pension fund, provident fund or retirement annuity fund.
[Sub-para. (l) added by s. 118 (1) (d) of Act 31 of 2013 – date of commencement: 1 March 2016 (‘1 March 2015’ replaced by ‘1 March 2016’ by s. 130 (1) of Act 43 of 2014; the addition applies iro contributions made on or after that date).]
DETERMINATION OF CASH EQUIVALENT OF VALUE OF TAXABLE BENEFIT (para. 3)
3. (1) The cash equivalent of the value of a taxable bene t shall, for the purposes of paragraph (i) of the de nition of ‘gross income’ in section 1 of this Act, be determined in accordance with the provisions of this Schedule by the employer by whom the taxable bene t has been granted.
(2) The Commissioner may, if no determination is made, or if such determination appears to him or her to be incorrect, re-determine such cash equivalent—
(a) and issue the employer with a notice of assessment in terms of paragraph 12 of the Fourth Schedule for the unpaid
amount of employees’ tax that is required to be deducted or withheld from such cash equivalent; or
(b) upon the assessment of the liability for normal tax of the employee to whom such taxable bene t has been granted.
[Sub-para. (2) substituted by s. 23 of Act 8 of 2010.]
(3) If the employee concerned is dissatis ed with any determination or proposed determination by his employer of the cash equivalent of the value of any taxable bene t included in the remuneration of the employee for employees’ tax purposes, the employee or the employer may refer the matter to the Commissioner and the Commissioner may, if it appears to him that the determination or proposed determination should be adjusted, issue a directive to the employer as to the manner in which such determination should be made and the employer shall be obliged to act upon such directive: Provided that nothing in this subparagraph contained shall be construed as preventing the Commissioner from making a re-determination of such cash equivalent under the provisions of subparagraph (2).
TAXABLE BENEFITS GRANTED BY ASSOCIATED INSTITUTIONS (para. 4)
4. Where any associated institution in relation to any employer has given any employee of that employer, by reason of the fact that the employee is in the employment of the employer, or as a bene t or advantage of such employment or as a reward for services rendered or to be rendered by the employee to the employer any bene t or advantage which, if such bene t or advantage had been given to the employee directly by the employer in the circumstances contemplated in paragraph 2, would have constituted a taxable bene t, such bene t or advantage shall for the purposes of this Schedule be deemed to be a taxable bene t granted by the employer to the employee and the cash equivalent of the value of such taxable bene t shall be determined accordingly.
350 SAIT CompendIum oF TAx LegISLATIon VoLume 1