Page 369 - SAIT Compendium 2016 Volume1

Seventh Schedule INCOME TAX ACT 58 OF 1962 Seventh Schedule
(c) the dependants of a person after such person’s death, if such person retired from the employ of such employer by reason of superannuation, ill-health or other in rmity.
(d) . . .
[Item (d) added by s. 59 (1) (d) of Act 31 of 2005 and deleted by s. 105 (1) of Act 24 of 2011 – date of commencement:
1 March 2012. This deletion applies in respect of taxable bene ts derived on or after that date.] [Para. 12A inserted by s. 56 (1) of Act 30 of 1998.]
INCURRAL OF COSTS RELATING TO MEDICAL SERVICES (para. 12B)
12B. (1) The cash equivalent of the value of the taxable bene t contemplated in paragraph 2 (j) is the amount incurred by the employer during any month, directly or indirectly, in respect of any medical, dental and similar services, hospital services, nursing services or medicines in respect of that employee, his or her spouse, child or other relative or dependants.
(2) Where the payment of any amount contemplated in subparagraph (1) is made in such a manner that an appropriate portion thereof cannot be attributed to the relevant employee and his or her spouse, children, relatives and dependants, the amount of that payment in relation to that employee and his or her spouse, children, relatives and dependants is, for purposes of subparagraph (1), deemed to be an amount equal to the total amount incurred by the employer during the relevant period in respect of all medical, dental and similar services, hospital services, nursing services or medicines for the bene t of all employees and their spouses, children, relatives and dependants divided by the number of employees who are entitled to make use of those services.
(3) No value must be placed in terms of this paragraph on any taxable bene t—
(a) resulting from the provision of medical treatment listed in any category of the prescribed minimum bene ts
determined by the Minister of Health in terms of section 67 (1) (g) of the Medical Schemes Act which is provided to the employee or his or her spouse or children in terms of a scheme or programme of that employer—
[Words in item (a) preceding subitem (i) substituted by s. 123 (a) of Act 31 of 2013 – date of commencement: 12 December 2013.]
(i) which constitutes the carrying on of the business of a medical scheme if that scheme or programme has been approved by the Registrar of Medical Schemes as being exempt from complying with the requirements of medical schemes in terms of that Act; or
(ii) which does not constitute the carrying on of the business of a medical scheme, if that employee and his or her spouse and children—
(aa) are not bene ciaries of a medical scheme registered under the Medical Schemes Act; or
[Subsubitem (aa) substituted by s. 123 (b) of Act 31 of 2013 – date of commencement: 12 December 2013.]
(bb) are bene ciaries of such a medical scheme, and the total cost of that treatment is recovered from that
medical scheme;
(aA) where the services are rendered or the medicines are supplied for purposes of complying with any law of the Republic;
[Subitem (ii) substituted by s. 31 of Act 9 of 2006.] [Item (aA) inserted by s. 70 of Act 35 of 2007.]
(b) derived from an employer by—
(i) a person who by reason of superannuation, ill-health or other in rmity retired from the employ of that employer;
(ii) the dependants of a person after that person’s death, if that person was in the employ of that employer on the date of death;
(iii) the dependants of a person after that person’s death, if that person retired from the employ of that employer by reason of superannuation, ill-health or other in rmity; or
(iv) a person who during the relevant year of assessment is entitled to a rebate under section 6 (2) (b); or
(c) where the services are rendered by the employer to its employees in general at their place of work for the better
performance of their duties.
[Para. 12B inserted by s. 60 (1) of Act 31 of 2005.]
BENEFITS IN RESPECT OF INSURANCE POLICIES (para. 12C)
12C. (1) The cash equivalent of the value of a taxable bene t deemed to have been granted as contemplated in paragraph 2 (k) is the amount of any expenditure incurred by an employer during a year of assessment in respect of any premiums payable under a policy of insurance directly or indirectly for the bene t of an employee or his or her spouse, child, dependant or nominee.
(2) . . .
[Sub-para. (2) deleted by s. 124 (1) of Act 39 of 2013 – date of commencement: 1 March 2015; the insertion applies iro premiums paid on or after that date.]
(3) Where an appropriate portion of any expenditure contemplated in subparagraph (1) cannot be attributed to the employee for whose bene t the premium is paid, the amount of that expenditure in relation to that employee is deemed, for the purposes of subparagraph (1), to be an amount equal to the total expenditure incurred by the employer during that year of assessment for the bene t of all employees divided by the number of employees in respect of whom the expenditure is incurred.
[Para. 12C inserted by s. 106 (1) of Act 24 of 2011 – date of commencement: 1 March 2012. This paragraph applies in respect of premiums incurred on or after that date.]
VALUATION OF CONTRIBUTIONS MADE BY EMPLOYERS TO CERTAIN RETIREMENT FUNDS
(para. 12D)
12D. (1) For the purposes of this paragraph—
‘bene t’ in relation to an employee that is a member of a pension fund, provident fund or retirement annuity fund, means any amount payable to that member or a dependant or nominee of that member by that fund in terms of the rules of the fund;
‘contribution certi cate’ means the certi cate contemplated in subparagraph (4);
SAIT CompendIum oF TAx LegISLATIon VoLume 1 361
INCOME TAX ACT – SCHEDULES