Page 363 - SAIT Compendium 2016 Volume1

Seventh Schedule INCOME TAX ACT 58 OF 1962 Seventh Schedule
(a) the end of the period of three years; or
(b) the date on which the distance of 60 000 kilometres is travelled by that motor vehicle.
[Sub-para. (11) added by s. 91 (1) (j) of Act 7 of 2010.]
MEALS, REFRESHMENTS AND MEAL AND REFRESHMENT VOUCHERS (para. 8)
8. (1) Where an employee has been provided with any meal, refreshment or voucher as contemplated in paragraph 2 (c), the cash equivalent of the taxable bene t shall be so much of the value of such meal, refreshment or voucher (as determined under subparagraph (2) of this paragraph) as exceeds any consideration given by the employee in respect of such meal, refreshment or voucher.
(2) The value to be placed on such meal, refreshment or voucher shall be the cost to the employer of such meal, refreshment or voucher.
(3) No value shall be placed under this paragraph on—
(a) any meal or refreshment supplied by an employer to his employee in any canteen, cafeteria or dining room operated by or
on behalf of the employer and patronised wholly or mainly by his employees or on the business premises of the employer;
(b) any meal or refreshment supplied by an employer to an employee during business hours or extended working hours
or on a special occasion; or
(c) any meal or refreshment enjoyed by an employee in the course of providing a meal or refreshment to any person
whom the employee is required to entertain on behalf of the employer.
RESIDENTIAL ACCOMMODATION (para. 9)
9. (1) For the purposes of this paragraph— ‘remuneration’ . . .
[De nition of ‘remuneration’ amended by s. 53 of Act 113 of 1993, by s. 33 of Act 21 of 1994, by s. 57 of Act 31 of 2005, by s. 48 (1) (a) of Act 3 of 2008 and by s. 121 (1) (a) of Act 31 of 2013 and deleted by s. 97 (a) of the Taxation Laws Amendment Act, 2015 – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
Prelex
Wording of de nition of ‘remuneration’ in force until its deletion wef date of promulgation of Taxation Laws Amendment Act, 2015
‘remuneration’, in relation to any employee, means the aggregate of the amounts of remuneration (as determined in accordance with the de nition of ‘remuneration’ in paragraph 1 of the Fourth Schedule but excluding any amounts referred to in paragraph (cA) and including any amounts referred to in paragraph (vii)[sic] of that de nition) which have been derived by such employee from his or her employer and any companies and funds which are associated institutions in relation to the employer, but excluding—
(a) the value of any bene t or taxable bene t derived from the private use of any motor vehicle or the occupation of
residential accommodation;
(b) the amount of any remuneration derived by any employee who is not the controlling holder of shares or one of the
controlling holders of shares of the employer company, from an associated institution in relation to the employer if it is shown to the satisfaction of the Commissioner that the employee’s employment with the employer is not and was not in any way connected with the employee’s employment with such associated institution (any decision of the Commissioner under this paragraph being subject to objection and appeal).
[Item (b) substituted by s. 121 (1) (a) of Act 31 of 2013 – date of commencement: 12 December 2013.]
(c) . . .
[Item (c) deleted by s. 57 of Act 31 of 2005.]
[De nition of ‘remuneration’ amended by s. 53 of Act 113 of 1993, by s. 33 of Act 21 of 1994 and by s. 48 (1) (a) of Act 3 of 2008.]
‘remuneration factor’ . . .
[De nition of ‘remuneration factor’ deleted by s. 121 (1) (b) of Act 31 of 2013 – deletion deemed to have come into
operation on 1 March 2013 and applies in respect of years of assessment commencing on or after that date.]
(2) The cash equivalent of the value of the taxable bene t derived from the occupation of residential accommodation as contemplated in paragraph 2 (d) shall be the rental value of such accommodation (as determined under subparagraph (3), (4) or (5) of this paragraph in respect of the year of assessment) less any rental consideration given by the employee for such accommodation in respect of such year, any rental consideration given by him in respect of household goods supplied with such accommodation
and any charge made to the employee by the employer in respect of power or fuel provided with the accommodation.
[Sub-para. (2) substituted by s. 31 (a) of Act 96 of 1985, by s. 55 (1) (a) of Act 30 of 1998 and by s. 97 (b) of Taxation Laws Amendment Act, 2015 (‘(3A)’ deleted after ‘(3)’) – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
(3) Subject to the provisions of subparagraphs (3C) and (4), the rental value to be placed on such accommodation for any year of assessment shall be an amount determined in accordance with the formula
[Words in sub-para. (3) preceding the formula substituted by s. 76 (1) (a) of Act 43 of 2014 (date of commencement:
1 March 2015; the substitution applies iro years of assessment commencing on or after that date) and by s. 97 (c) of Taxation Laws Amendment Act, 2015 (‘(3A)’ deleted before ‘(3C)’) – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
(A 2 B) 3 _C__ 3 _D_ , 100 12
in which formula—
(i) ‘A’ represents the remuneration proxy as determined in relation to the year of assessment;
SAIT CompendIum oF TAx LegISLATIon VoLume 1 355
INCOME TAX ACT – SCHEDULES