Page 43 - SAIT Compendium 2016 Volume1

s 1 INCOME TAX ACT 58 OF 1962 s 1
Amendment Act, 2015 (‘the Commissioner is satis ed that’ (after ‘Southern Africa, if’) deleted) – date of commencement: 1 March 2016; the substituted paragraph applies iro years of assessment commencing on or after that date.]
(c) the Municipal Councillors Pension Fund provisionally registered under the Pension Funds Act on 23 May 1988, or any fund (other than a retirement annuity fund, a pension preservation fund or a fund contemplated in paragraph (a) or (b)) which is approved by the Commissioner in respect of the year of assessment in question and, in the case of any such fund established on or after 1 July 1986, is registered under the provisions of that Act: Provided that the Commissioner may approve a fund subject to such limitations or conditions as he may determine, and shall not approve a fund in respect of any year of assessment unless he is in respect of that year of assessment satis ed—
[Words preceding proviso substituted by s. 4 (1) (zC) of Act 31 of 2013 – date of commencement: 12 December 2013.]
(i) that the fund is a permanent fund bona de established for the purpose of providing annuities for employees on retirement from employment or for the dependants or nominees of deceased employees, or mainly for the said purpose and also for the purpose of providing bene ts other than annuities for the persons aforesaid or for the purpose of providing any bene t contemplated in paragraph 2C of the Second Schedule or section 15A or 15E of the Pension Funds Act; and
[Sub-para. (i) substituted by s. 2 (d) of Act 21 of 1995, by s. 4 (1) (l) of Act 60 of 2008 and by s. 4 (1) (zD) of Act 31 of 2013 – date of commencement: 12 December 2013.]
(ii) that the rules of the fund provide—
(aa) that all annual contributions of a recurrent
nature to the fund shall be in accordance
with speci ed scales;
(bb) that membership of the fund throughout the
period of employment shall be a condition of the employment by the employer of all persons of the class or classes speci ed therein who enter his employment on or after the date upon which—
(A) the fund comes into operation; or
(B) the employer becomes a participant in
that fund;
[Item (bb) substituted by s. 7 (1) (z) of Act 24 of 2011 – date of commencement: 10 January 2012.]
(cc) that persons who immediately prior to the said date were employed by the employer and who on the said date fall within the said class or classes may, on application made within a period of not more than 12 months as from the said date, be permitted to become members of the fund on such conditions as may be speci ed in the rules;
(dd) that not more than one-third of the total value of the retirement interest may be commuted for a single payment, and that the remainder must be paid in the form of an annuity (including a living annuity) except where two-thirds of the total value
does not exceed R165 000 or where the
employee is deceased;
[Item (dd) substituted by s. 2 (1) (b) of Act 101 of 1990, amended by s. 2 (1) (i) of Act 113 of 1993 and by
s. 2 (2) (b) of Act 8 of 2007, substituted by s. 3 (1) (f) of Act 8 of 2007, amended by s. 1 (2) (c) of Act 3 of 2008 and substituted by s. 2 (1) (t) of Act 3 of 2008, by
s. 4 (1) (m) of Act 60 of 2008 and by s. 3 (1) (n) of Taxation Laws Amendment Act, 2015* (‘R50 000’ replaced by ‘R 165 000’) – date of commencement: 1 March 2016; the substituted paragraph applies iro years of assessment commencing on or after that date.]
(ee) that a partner of a partnership is regarded as an employee of the partnership; and
[Item (ee) substituted by s. 2 (g) of Act 59 of 2000 and substituted by s. 2 (1) (t) of Act 3 of 2008.]
(ff) that the Commissioner shall be noti ed of all amendments of the rules; and
(gg) . . .
[Item (gg) substituted by s. 2 (e) of Act 21 of 1995 and
deleted by s. 2 (1) (u) of Act 3 of 2008.]
(iii) that the rules of the fund have been complied with: Provided further that a fund contemplated in paragraph (i) of the further proviso to the de nition of ‘pension preservation fund’ which is deemed to be approved or which is approved in terms of that de nition or which fails to submit its rules as required by that paragraph is deemed with effect from the earlier of the date of the deemed approval or 30 September 2010 to be a fund which is not
approved in terms of this de nition;
[Para. (c) amended by s. 2 (1) (c) of Act 65 of 1986, by s. 1 (1) of Act 99 of 1988, by s. 4 (1) (k) and (n) of Act 60 of 2008 and by s. 6 (1) (r) of Act 7 of 2010.]
(d) the Government Employees Pension Fund, as contemplated in the Government Employees Pension Law, 1996 (Proclamation 21 of 1996):
[Para. (d) added by s. 3 (1) (o) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 March 2016†; the paragraph applies iro years of assessment commencing on or after that date.]
Provided that in respect of any fund contemplated in paragraph (a) or (b)—
(a) the fund is a permanent fund bona de established
for the purpose of providing annuities for employees on retirement from employment or for the dependants or nominees of deceased employees, or mainly for the said purpose and also for the purpose of providing bene ts other than annuities for the persons aforesaid or for the purpose of providing any bene t contemplated in paragraph 2C of the Second Schedule or section 15A or 15E of the Pension Funds Act; and
(b) the rules of the fund provide—
(i) that all annual contributions of a recurrent nature
to the fund shall be in accordance with speci ed
scales;
(ii) that membership of the fund throughout the
period of employment shall be a condition of the employment by the employer of all persons of the class or classes speci ed therein who enter his employment on or after the date upon which— (aa) the fund comes into operation; or
* Item (dd) was to be substituted by s. 4 (1) (zE) of Act 31 of 2013 (as substituted by s. 119 (1) (a) of Act 43 of 2014) wef 1 March 2016, but the said para. (zE) (of s. 4 (1)) has been deleted, and s. 119 has been repealed, by ss. 143 (1) (a) and 155 (1), respectively, of Taxation Laws Amendment Act, 2015. See also the 2015 Compendium (pp. 30 and 31) for notes iro item (dd).
† See footnote in annotation to para. (a) (i) of de nition of ‘pension fund’.
SAIT CompendIum oF TAx LegISLATIon VoLume 1 35
INCOME TAX ACT – SECTIONS