Page 367 - SAIT Compendium 2016 Volume1

Seventh Schedule INCOME TAX ACT 58 OF 1962 Seventh Schedule
(i) where interest in respect of the debt in question becomes payable by the employee at regular intervals, on each date during the year of assessment on which interest becomes so payable for a portion of such year;
[Subitem (i) substituted by s. by s. 98 (c) of Taxation Laws Amendment Act, 2015 (‘on the loan’ replaced by ‘in respect of the debt’) – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
(ii) where interest in respect of the debt in question becomes payable by the employee at irregular intervals or where interest on the loan is not payable by him or her, on the last day of each period during the year of assessment in respect of which any cash remuneration becomes payable by the employer to the employee; and
[Subitem (ii) substituted by s. 98 (c) of Taxation Laws Amendment Act, 2015 – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
(b) the said portion shall be determined by calculating interest at the of cial rate of interest for the portion of the year referred to in subparagraph (2) (a) (i) or the period referred to in subparagraph (2) as the case may be, and deducting therefrom so much of the amount of interest (if any) payable by him or her on the debt as relates to the said portion of a year or the said period, as the case may be: Provided that where the of cial rate of interest has been altered with effect from any date, any cash equivalent which is under item (a) deemed to have accrued to the employee on any date falling before the date on which such interest rate was so altered shall be determined as though such rate of interest had not been so altered.
[Words preceding the proviso substituted by s. 98 (d) of Taxation Laws Amendment Act, 2015 – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
[Item (b) amended by s. 35 (1) (b) of Act 65 of 1986.] [Sub-para. (2) amended by s. 35 (1) (a) of Act 65 of 1986.]
(3) A different method of calculation of the said cash equivalent or portions thereof may be employed if the Commissioner decides, on application by the taxpayer, that such method achieves substantially the same result as the methods provided in subparagraphs (1) and (2).
[Sub-para. (3) substituted by s. 98 (e) of Taxation Laws Amendment Act, 2015 – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
(4) No value shall be placed under this paragraph on the taxable bene t derived in consequence of—
(a) a debt owed by any employee to his or her employer if such debt or the aggregate of such debts does not exceed the
sum of R3 000 at any relevant time; or
[Item (a) amended by s. 2 (2) (b) of Act 8 of 2007 and by s. 1 (2) (c) of Act 3 of 2008 and substituted by s. 98 (f) of Taxation Laws Amendment Act, 2015 – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
(b) the debt owed to any employer by an employee incurred for the purpose of enabling that employee to further his or her own studies.
[Item (b) substituted by s. 98 (f) of Taxation Laws Amendment Act, 2015 – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
Prelex
Wording of subitem (i) in force until its substitution wef date of promulgation of Taxation Laws Amendment Act, 2015
(i) where interest on the loan in question becomes payable by the employee at regular intervals, on date during the year of assessment on which interest becomes so payable for a portion of such year;
Prelex
Wording of subitem (ii) in force until its substitution wef date of promulgation of Taxation Laws Amendment Act, 2015
(ii) where interest on the loan in question becomes payable by the employee at irregular intervals or where interest on the loan is not payable by him, on the last day of each period during the year of assessment in respect of which any cash remuneration becomes payable by the employer to the employee; and
Prelex
Words preceding the proviso in force until its substitution wef date of promulgation of Taxation Laws Amendment Act, 2015
(b) the said portion shall be determined by calculating interest at the of cial rate of interest for the portion of the
year referred to in subparagraph (2) (a) (i) or the period referred to in subparagraph (2) as the case may be, and deducting therefrom so much of the amount of interest (if any) payable by him on the loan as relates to the said portion of a year or the said period, as the case may be:
Prelex
Wording of sub-para. (3) in force until its substitution wef date of promulgation of Taxation Laws Amendment Act, 2015
(3) With the consent of the Commissioner a different method of calculation of the said cash equivalent or portions thereof may be employed if the Commissioner is satis ed that such method achieves substantially the same result as the methods provided in subparagraphs (1) and (2).
Prelex
Wording of item (a) in force until its substitution wef date of promulgation of Taxation Laws Amendment Act, 2015 (a) the grant by any employer to his employee of any casual loan or loans if such loan or the aggregate of such loans
does not exceed the sum of R3 000 at any relevant time; or
[Item (a) amended by s. 2 (2) (b) of Act 8 of 2007 and by s. 1 (2) (c) of Act 3 of 2008.]
SAIT CompendIum oF TAx LegISLATIon VoLume 1 359
INCOME TAX ACT – SCHEDULES