Page 372 - SAIT Compendium 2016 Volume1

Seventh Schedule INCOME TAX ACT 58 OF 1962 Seventh Schedule
if as a bene t or advantage of or by virtue of the employee’s employment with the employer or as a reward for services rendered or to be rendered by the employee—
(a) the employer has granted a bene t or advantage (whether directly or indirectly) to a relative of the employee, other
than a bene t or advantage in respect of which paragraph 10 (2) (d) applies; or [Item (a) substituted by s. 62 of Act 31 of 2005.]
(b) anything is done by the employer under any agreement, transaction or arrangement so as to confer any bene t or advantage upon any person other than the employee (whether directly or indirectly),
and such bene t or advantage, if it had been granted directly by the employer to the employee, would have constituted a taxable bene t contemplated in paragraph 2.
(2) The provisions of this Schedule shall apply in relation to the taxable bene t so deemed to have been granted as though the taxable bene t had in fact been granted to the employee.
CERTIFICATES BY EMPLOYERS (para. 17)
17. (1) Every employer shall, within 30 days after the end of any year or period of assessment during which an employee of that employer has enjoyed any taxable bene t granted by the employer, or, in any particular case, within such further period as the Commissioner may approve, deliver to such employee a certi cate which shall show the nature of such taxable bene t and the full cash equivalent of the value thereof during such year or period.
(2) The provisions of subparagraph (1) shall also apply in respect of any taxable bene t referred to in paragraph 4 or 16.
(3) Such employer shall within the said period of 30 days or the said further period, deliver to the Commissioner a copy of such certi cate.
(4) Any employer who fails to comply with the requirements of this paragraph shall pay to the Commissioner a penalty equal to 10 per cent of the cash equivalent of the value of the taxable bene t in question or where the said cash equivalent has been understated, of the amount by which the cash equivalent was understated.
[Sub-para. (4) amended by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(5) . . .
[Sub-para. (5) deleted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(6) The preceding provisions of this paragraph shall not apply where the cash equivalent of such taxable bene t constituted remuneration in the hands of the employee concerned from which employees’ tax was deducted or withheld by the employer and such cash equivalent has been included in an employees’ tax certi cate delivered to the employee in terms
of paragraph 13 of the Fourth Schedule, except to the extent that such cash equivalent was understated in such certi cate.
ANNUAL STATEMENTS BY EMPLOYERS (para. 18)
18. (1) Every employer shall on the return referred to in paragraph 14 of the Fourth Schedule declare that all taxable bene ts enjoyed by employees of such employer during the period in respect of which such return was furnished, are declared on the employees’ tax certi cates delivered to such employees or on any other return as may be required by the Commissioner.
[Sub-para. (1) substituted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.] (2) Every such return shall, in the case of a company, be certi ed as correct by a director of such company.
[Para. 18 repealed by s. 26 of Act 70 of 1989 and inserted by s. 61 of Act 101 of 1990.]
[Para. 19 substituted by s. 27 of Act 70 of 1989 and by s. 56 of Act 30 of 2000 and repealed by s. 271 of Act 28 of 2011 –
date of commencement: 1 October 2012.] AMENDMENTS TO THIS SCHEDULE (para. 20)
20. (1) The Minister of Finance may by notice in the Gazette amend—
(i) (j)
[Items (f) and (g) deleted by s. 57 (c) of Act 30 of 2000.] the provisions of paragraph 10 (2) so as to vary the amount speci ed therein; and
[Item (i) substituted by s. 57 (d) of Act 30 of 2000.] the provisions of paragraph 11 (4) (a) so as to vary the amount speci ed therein.
[Sub-para. (1) amended by s. 39 of Act 96 of 1985.]
19. . . .
(a) . . .
(b) the provisions of paragraph 5 (2) so as to vary the amount speci ed therein;
[Item (b) substituted by s. 34 of Act 21 of 1994.]
(c) the provisions of paragraph 7 (4) so as to substitute a different scale for the scale speci ed therein and so as to vary
the amounts speci ed in the proviso thereto;
(d) the provisions of paragraph 7 (7) so as to vary the distance in kilometres speci ed therein;
(e) the provisions of paragraph 9 (3) (a) so as to vary the amount and quantities speci ed therein;
[Item (e) substituted by s. 57 (b) of Act 30 of 2000.]
[Item (a) deleted by s. 57 (a) of Act 30 of 2000.]
(f) and (g) . . .
(h) the provisions of paragraph 10 (1) (a) so as to vary the amount speci ed therein;
(2) Any amendment made in terms of subparagraph (1) which is in force immediately before the date of promulgation of the Act of Parliament xing rates of normal tax for the said year of assessment shall, unless Parliament otherwise provides, lapse on that date, and in such case it shall as from that date cease to have the force of law.
364 SAIT CompendIum oF TAx LegISLATIon VoLume 1