Page 371 - SAIT Compendium 2016 Volume1

Seventh Schedule INCOME TAX ACT 58 OF 1962 Seventh Schedule
(d) ‘C’ represents the sum of the amounts contributed by the employee to the fund in terms of the rules of the fund, excluding any additional voluntary contributions contributed to the fund by the employee, and buyback, in respect of that year of assessment.
(4) The board of a fund must provide to the employer of the employees who are members of a fund a contribution certi cate in respect of the bene t contemplated in subparagraph (3)—
(a) no later than one month before the commencement of the year of assessment in respect of which the contribution certi cate
is issued: Provided that the board of the fund must not provide a contribution certi cate in respect of any year of assessment
in respect of which those bene ts remain unaltered subsequent to the issue of that contribution certi cate; or
(b) where the rules of the fund are amended and those amendments or for any reason affect the value of or entitlement to any bene t payable to a member of that fund or a dependant or nominee of that member, the contribution certi cate must be supplied to the employer no later than one month after the day on which those amendments become effective.
(5) The Minister must make regulations prescribing—
(a) the manner in which a fund must determine all fund member category factors; and
(b) the information that the contribution certi cate contemplated in subparagraph (4) must contain.
(6) No value must be placed in terms of this paragraph on the taxable bene t derived from any contribution made by an employer to a fund—
(a) for the bene t of a member of that fund who has retired from that fund; or
(b) in respect of the dependants or nominees of a deceased member of that fund.
[Para. 12D inserted by s. 125 (1) of Act 31 of 2013 – date of commencement: 1 March 2016 (‘1 March 2015’ replaced by ‘1 March 2016’ by s. 131 (1) of Act 43 of 2014; and applies iro contributions made on or after that date) and substituted by s. 77 (1) of Act 43 of 2014 – date of commencement: 1 March 2016.]
PAYMENT OF EMPLOYEE’S DEBT OR RELEASE OF EMPLOYEE FROM OBLIGATION TO PAY A DEBT (para. 13)
13. (1) The cash equivalent of the value of the taxable bene t derived by reason of the payment of any amount by an employer in the circumstances contemplated in paragraph 2 (h) shall be an amount equal to such amount and the cash equivalent of the bene t to an employee by reason of his release from the obligation to pay an amount owing, as contemplated in the said paragraph, shall be an amount equal to the amount that was owing.
(2) No value shall be placed under this paragraph on the value of any taxable bene t derived by reason of the fact that an employer has paid—
(a) . . .
[Item (a) omitted by s. 92 (1) of Act 7 of 2010.]
(b) subscriptions due by his or her employee to a professional body, if membership of such body is a condition of the
employee’s employment;
(bA) insurance premiums indemnifying an employee solely against claims arising from negligent acts or omissions on
the part of the employee in rendering services to the employer; or
(c) any portion of the value of a bene t which is payable by a former member of a non-statutory force or service
as de ned in the Government Employees Pension Law, 1996 (Proclamation 21 of 1996), to the Government Employees’ Pension Fund as contemplated in Rule 10 (6) (d) or (e) of the Rules of the Government Employees Pension Fund contained in Schedule 1 to that Proclamation.
[Sub-para. (2) amended by s. 51 (1) (a) and (b) of Act 129 of 1991, substituted by s. 37 of Act 30 of 2002, amended by s. 61 (1) of Act 31 of 2005 and substituted by s. 92 (1) of Act 7 of 2010.]
(3) Where—
(a) in consideration for the grant by any employer (hereinafter referred to as the former employer) to an employee of
any bursary, study loan or similar assistance, the employee assumed an obligation to render services to the former
employer for an agreed period;
(b) in consequence of the employee having terminated his services with the former employer before the expiry of
the said period and having taken up employment with another employer (hereinafter referred to as the present
employer), the employee thereupon became liable to pay an amount to the former employer;
(c) such amount was paid to the former employer on the employee’s behalf by the present employer; and
(d) the employee has in consideration for such payment by the present employer assumed an obligation to render
services to the present employer for a period which is not shorter than the unexpired portion of the period during
which he had been obliged to render services to the former employer,
no value shall be placed under this paragraph on the value of any taxable bene t derived by reason of the payment
referred to in item (c).
13A. . . .
14. . . .
[Sub-para. (3) added by s. 37 (1) of Act 141 of 1992.]
[Para. 13A inserted by s. 36 of Act 96 of 1985 and deleted by s. 50 of Act 21 of 1995.]
[Para. 14 amended by s. 37 of Act 96 of 1985, by s. 36 (1) of Act 65 of 1986 and by s. 30 of Act 85 of 1987 and deleted by s. 51 of Act 21 of 1995.]
15. . . .
[Para. 15 amended by s. 38 of Act 96 of 1985, by s. 37 (1) of Act 65 of 1986 and by s. 11 of Act 108 of 1986 and deleted by s. 52 of Act 21 of 1995.]
BENEFITS GRANTED TO RELATIVES OF EMPLOYEES AND OTHERS (para. 16)
16. (1) For the purposes of this Schedule and of paragraph (i) of the de nition of ‘gross income’ in section 1 of this
Act, an employee shall be deemed to have been granted a taxable bene t in respect of his employment with an employer SAIT CompendIum oF TAx LegISLATIon VoLume 1 363
INCOME TAX ACT – SCHEDULES