Page 49 - SAIT Compendium 2016 Volume1

s 1 INCOME TAX ACT 58 OF 1962 s 1
(bb) the winding up or partial winding up of that fund, if the members elected or are required in terms of the rules to transfer to this fund; or
[Item (bb) substituted by s. 6 (1) (zA) of Act 7 of 2010.] (cc) a transfer of business from one employer to another in terms of section 197 of the Labour Relations Act, 1995 (Act 66 of 1995), and the employment of the employee with the transferor employer is transferred to the transferee employer, if the members
elected or are required in terms of the rules (ii) former members of any other pension fund, pension preservation fund, provident fund or
provident preservation fund—
[Words in sub-para. (ii) of para. (a) of the proviso preceding item (aa) substituted by s. 3 (1) (x) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 March 2016*; the substitution applies iro years of assessment commencing on or after that date.]
(aa)if that fund was wound up or partially wound up; or
[Item (aa) substituted by s. 6 (1) (zB) of Act 7 of 2010.] (bb) if the member elected to have any lump sum bene t contemplated in paragraph 2 (1) (b) (ii) of the Second Schedule transferred to that fund and who made this election while
they were members of that other fund;
[Item (bb) substituted by s. 7 (1) (w) of Act 17 of 2009.] (iii) former members of a provident fund or nominees or dependants of that former member in respect of whom an ‘unclaimed bene t’ as de ned in the Pension Funds Act is due or payable by that
fund; or
[Sub-para. (iii) substituted by s. 7 (1) (zF) of Act 24 of 2011 and by s. 4 (1) (zQ) of Act 31 of 2013 – date of commencement: 12 December 2013.]
(iv) a person who has elected to transfer an amount awarded to that person in terms of a court order contemplated in section 7 (8) of the Divorce Act, 1979 (Act 70 of 1979), from a provident fund or provident preservation fund for the bene t of that person;
(b) payments or transfers to the fund in respect of a member are limited to any amount contemplated in paragraph 2 (1) (a) (ii) or (b) of the Second Schedule or any unclaimed bene t as de ned in the Pension Funds Act that is paid or transferred to the fund by—
[Words in para. (b) preceding sub-para. (i) substituted by s. 7 (1) (zG) of Act 24 of 2011 and by s. 4 (1) (zR) of Act 31 of 2013 – date of commencement: 12 December 2013.]
(i) a pension fund, pension preservation fund, provident fund or provident preservation fund of which that member was previously a member; or
[Sub-para. (i) of para. (b) of the proviso substituted by s. 3 (1) (y) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 March 2016†; the substitution applies iro years of assessment commencing on or after that date.]
* See footnote in annotation to para. (a) (i) of de nition † See footnote in annotation to para. (a) (i) of de nition
(ii) a provident fund or provident preservation fund of which such member’s former spouse is or was previously a member and such payment or transfer was made pursuant to an election by such member in terms of section 37D (4) (b) (ii) of the Pension Funds Act;
[Sub-para. (ii) substituted by s. 7 (1) (y) of Act 17 of 2009 and by s. 4 (1) (zS) of Act 31 of 2013 – date of commencement: 12 December 2013.]
[Para. (b) substituted by s. 4 (1) (u) of Act 60 of 2008 and amended by s. 7 (1) (x) of Act 17 of 2009.]
(c) with the exception of amounts transferred to any pension fund, pension preservation fund, other provident fund, provident preservation fund or retirement annuity fund, not more than one amount contemplated in paragraph 2 (1) (b) (ii) of the Second Schedule is allowed to be paid to the member during the period of membership of the fund or any other pension preservation fund: Provided that this paragraph applies separately to each payment or transfer to the fund contemplated in paragraph (b);
[Para. (c) substituted by s. 4 (1) (u) of Act 60 of 2008 and by s. 7 (1) (z) of Act 17 of 2009 and amended by s. 2 (1) (u) of Act 22 of 2012 – substitution of words preceding the proviso deemed to have come into operation on 1 March 2012.]
Prelex
Words in sub-para. (ii) of para. (a) of proviso preceding item (aa) in force until 1 March 2016
(ii)former members of any other provident preservation fund—
(d) (e)
a member, other than a member contemplated in paragraph (a) (iii) of this proviso, will become entitled to a bene t on his or her retirement date; and 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: Provided that in determining the value of the retirement interest an amount calculated as follows must not be taken into account:
(a) in the case of a person who is a member of a provident fund and who is 55 years of age or older on 1 March 2016—
(b)
(i) any amount contributed to a provident fund of which that person is a member on 1 March 2016;
(ii) with addition of any other amounts credited to the member’s individual account of the provident fund prior to 1 March 2016; and
(iii) any fund return, as de ned in the Pension Funds Act, in relation to the contributions contemplated in subparagraph (i) or amounts credited contemplated in subparagraph (ii); or
in any other case of a person who is a member of a provident fund —
(i) any amount contributed to a provident fund prior to 1 March 2016;
(ii) with addition of any other amounts credited to the member’s individual account of the provident fund prior to 1 March 2016; and
of ‘pension fund’. of ‘pension fund’.
SAIT CompendIum oF TAx LegISLATIon VoLume 1 41
Prelex
Wording of sub-para. (i) of para. (b) of proviso in force until 1 March 2016
(i) a provident fund or any other provident preservation fund of which such member was previously a member; or
INCOME TAX ACT – SECTIONS