Page 366 - SAIT Compendium 2016 Volume1

Seventh Schedule INCOME TAX ACT 58 OF 1962 Seventh Schedule
(b) in the case of the rendering of any other service as contemplated in the said paragraph, the cost to the employer in rendering such service or having such service rendered, less the amount of any consideration given by the employee in respect of such service.
(2) No value shall be placed under this paragraph on—
(a) any travel facility granted by any employer who is engaged in the business of conveying passengers for reward by
land, sea or air to enable any employee in his employment or such employee’s spouse or minor child to travel— (i) to any destination in the Republic or to travel overland to any destination outside the Republic; or
(ii) to any destination outside the Republic if such travel was undertaken on a ight or voyage made in the ordinary course of the employer’s business and such employee, spouse or minor child was not permitted to make a rm advance reservation of the seat or berth occupied by him or her;
[Subitem (ii) substituted by s. 30 (b) of Act 9 of 2006.]
(b) any transport service rendered by any employer to his employees in general for the conveyance of such employees
from their homes to the place of their employment and vice versa;
(bA) any communication service provided to an employee if the service is used mainly for the purposes of the employer’s
business;
[Item (bA) inserted by s. 73 of Act 60 of 2008.]
(c) any services rendered by an employer to his employees at their place of work for the better performance of their
duties or as a bene t to be enjoyed by them at that place or for recreational purposes at that place or a place of
recreation provided by the employer for the use of his employees in general; or
(d) any travel facility granted by an employer to the spouse or any minor child of an employee if—
(i) that employee is for the duration of the term of his or her employment stationed for purposes of the business of that employer at a speci c place in the Republic further than 250 kilometres away from his or her usual place of residence in the Republic;
(ii) that employee is required to spend more than 183 days during the relevant year of assessment at that speci c place for purposes of the business of that employer; and
(iii) that facility is granted in respect of travel between that employee’s usual place of residence in the Republic and that speci c place where the employee is so stationed.
[Item (d) deleted by s. 36 of Act 30 of 2002, added by s. 58 of Act 31 of 2005 and substituted by s. 69 (1) of Act 35 of 2007.] 10A. (1) Where—
(a) any employee has been granted the right to occupy residential accommodation owned by his employer or by any associated institution in relation to his employer;
(b) the employee, his spouse or minor child is in terms of an agreement entered into with such employer or associated institution, entitled or obliged to acquire such residential accommodation at a future date at a price stated in such agreement; and
(c) the employee is required to pay in respect of his occupation of such residential accommodation a rental which is
calculated wholly or partly as a percentage of the price referred to in item (b),
it shall be deemed for the purposes of this Schedule that the employer or, where the residential accommodation is owned by such associated institution, the associated institution, has granted to the employee a loan equal to the price referred to in item (b) and that interest is payable on such loan at a rate equal to the percentage referred to in item (c).
(2) The provisions of paragraph 2 (d) shall not apply to any residential accommodation with which an employee has been provided in the circumstances contemplated in subparagraph (1), and the provisions of paragraph 2 (a) shall not apply where any such residential accommodation is acquired by the employee in terms of an agreement referred to in item (b) of that subparagraph at a price which is not lower than the market value of such residential accommodation on the date such agreement is concluded.
[Sub-para. (2) substituted by s. 60 (1) of Act 101 of 1990.] [Para. 10A inserted by s. 32 of Act 96 of 1985.]
BENEFITS IN RESPECT OF INTEREST ON DEBT (para. 11)
[Heading substituted by s. 98 (a) of Taxation Laws Amendment Act, 2015 (‘LOANS’ replaced by ‘DEBT’) – date of
commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
11. (1) The cash equivalent of the value of the taxable bene t derived in consequence of the debt owed by an employee in the circumstances contemplated in paragraph 2 (f) shall be the amount of interest that would have been payable on the amount owing in respect of the debt in respect of the year of assessment if the employee had been obliged to pay interest on such amount during such year at the of cial rate of interest, less the amount of interest (if any) actually incurred by
the employee in respect of the debt in respect of such year.
[Sub-para. (1) amended by s. 33 of Act 96 of 1985, substituted by s. 48 of Act 21 of 1995 and by s. 98 (b) of Taxation Laws Amendment Act, 2015 – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
(2) For the purposes of this Act—
(a) a portion of the said cash equivalent shall be deemed to have accrued to the employee—
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Wording of sub-para. (1) in force until its substitution wef date of promulgation of Taxation Laws Amendment Act, 2015
11. (1) The cash equivalent of the value of the taxable bene t derived in consequence of the grant of a loan to an employee in the circumstances contemplated in paragraph 2 (f) shall be the amount of interest that would have been payable on the amount owing in respect of the loan in respect of the year of assessment if the employee had been obliged to pay interest on such amount during such year at the of cial rate of interest, less the amount of interest (if any) actually incurred by the employee in respect of the loan in respect of such year.
[Sub-para. (1) amended by s. 33 of Act 96 of 1985 and substituted by s. 48 of Act 21 of 1995.]