Page 368 - SAIT Compendium 2016 Volume1

Seventh Schedule INCOME TAX ACT 58 OF 1962 Seventh Schedule
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Wording of item (b) in force until its substitution wef date of promulgation of Taxation Laws Amendment Act, 2015 (b) the grant by any employer to his employee of any loan for the purpose of enabling that employee to further his
own studies.
(5) Where any amount, being the cash equivalent as determined under the provisions of this paragraph, of the value of a taxable bene t derived by any taxpayer in consequence of a debt owed by him or her, has been included in such taxpayer’s taxable income in any year of assessment, such amount shall for the purposes of section 11 (a) of this Act be deemed to be interest actually incurred by him or her in that year of assessment in respect of the said debt where such amount, had it been actually incurred as interest, would have been incurred by the taxpayer in the production of his or her income.
[Sub-para. (5) substituted by s. 98 (g) of Taxation Laws Amendment Act, 2015 – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
SUBSIDIES IN RESPECT OF DEBT (para. 12)
[Heading substituted by s. 34 of Act 96 of 1985 and by s. 99 of Taxation Laws Amendment Act, 2015 (‘LOANS’ replaced
by ‘DEBT’) – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
12. The cash equivalent of the value of the taxable bene t consisting of any subsidy in respect of the amounts of interest or capital repayments referred to in paragraph 2 (g) or any subsidy contemplated in paragraph 2 (gA) shall be the
amount of such subsidy.
[Para. 12 substituted by s. 34 of Act 96 of 1985 and by s. 49 of Act 21 of 1995.]
CONTRIBUTION TO BENEFIT FUND (para. 12A)
12A. (1) The cash equivalent of the value of the taxable bene t contemplated in paragraph 2 (i) is the amount of any contribution or payment made by the employer in respect of a year of assessment, directly or indirectly, to any medical scheme registered under the Medical Schemes Act or to any fund which is registered under any similar provision contained in the laws of any other country where the medical scheme is registered, for the bene t of any employee or dependants, as de ned in that Act, of that employee.
[Sub-para. (1) substituted by s. 59 (1) (a) of Act 31 of 2005 and amended by s. 2 (2) (b) and s. 59 (1) of Act 8 of 2007, by s. 1 (2) (c) of Act 3 of 2008 and by s. 66 (1) (a) and (b) of Act 17 of 2009 and substituted by s. 122 of Act 31 of 2013 – date of commencement: 12 December 2013.]
(2) Where any contribution or payment made by an employer contemplated in subparagraph (1) is made in such a manner that an appropriate portion thereof cannot be attributed to the relevant employee or his or her dependants, the amount of that contribution or payment in relation to that employee and his or her dependants is deemed, for purposes of subparagraph (1), to be an amount equal to the total contribution or payment by the employer to the fund during the relevant period for the bene t of all employees and their dependants divided by the number of employees in respect of whom the contribution or payment is made.
[Sub-para. (2) substituted by s. 59 (1) (b) of Act 31 of 2005.]
(3) If the apportionment of the contribution or payment amongst all employees in accordance with subparagraph (2) does
not reasonably represent a fair apportionment of that contribution or payment amongst the employees, the Commissioner may, on application by the taxpayer, decide that the apportionment be made in such other manner as is fair and reasonable.
[Sub-para. (3) substituted by s. 59 (1) (c) of Act 31 of 2005 and by s. 100 of Taxation Laws Amendment Act, 2015 – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
(4) . . .
[Sub-para. (4) deleted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(5) No value shall be placed in terms of this paragraph on the taxable bene t derived from an employer by—
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Wording of sub-para. (5) in force until its substitution wef date of promulgation of Taxation Laws Amendment Act, 2015
(5) Where any amount, being the cash equivalent as determined under the provisions of this paragraph, of the value of a taxable bene t derived by any taxpayer in consequence of a loan granted to him, has been included in such taxpayer’s taxable income in any year of assessment, such amount shall for the purposes of section 11 (a) of this Act be deemed to be interest actually incurred by him in that year of assessment in respect of the said loan where such amount, had it been actually incurred as interest, would have been incurred by the taxpayer in the production of his income.
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Wording of sub-para. (3) in force until its substitution wef date of promulgation of Taxation Laws Amendment Act, 2015
(3) If the Commissioner is in any case satis ed that the apportionment of the contribution or payment amongst all employees in accordance with subparagraph (2) does not reasonably represent a fair apportionment of that contribution or payment amongst the employees, he or she may direct that the apportionment be made in such other manner as to him or her appears fair and reasonable.
[Sub-para. (3) substituted by s. 59 (1) (c) of Act 31 of 2005.]
(a) (b)
a person who by reason of superannuation, ill-health or other in rmity retired from the employ of such employer; or the dependants of a person after such person’s death, if such person was in the employ of such employer on the date of death; or
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SAIT CompendIum oF TAx LegISLATIon VoLume 1