Page 53 - SAIT Compendium 2016 Volume1

s 1 INCOME TAX ACT 58 OF 1962 (zB)* of Taxation Laws Amendment Act, 2015 (‘R50 000’
replaced by ‘R165 000’) (date of commencement: 1 March 2016; the substituted amount applies iro years of assessment commencing on or after that date) and by s. 3 (1) (zC) 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.]
(AA)
(BB)
s 1
working as contemplated in paragraph (i) of the de nition of ‘visa’ in section 1 of the Immigration Act, 2002 (Act 13 of 2002); or
a visit as contemplated in paragraph (b) of the de nition of ‘visa’ in section 1 of the Immigration Act, 2002 (Act 13 of 2002), issued in terms of paragraph (b) to the proviso of section 11 of that Act by the Director-General, as de ned in section 1 of that Act;
Prelex
Wording of sub-para. (ii) of para. (b) of proviso in force until 1 March 2016
(ii) 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 taken in the form of an annuity (including a living annuity) except where two-thirds of the total value does not exceed R50 000 or where the member is deceased;
(iii) . . .
[Sub-para. (iii) substituted by s. 2 (h) of Act 21 of 1995 and deleted by s. 2 (1) (y) of Act 3 of 2008.]
(iv) . . .
[Sub-para. (iv) deleted by s. 2 (1) (y) of Act 3 of 2008.] (v) that no member shall become entitled to the payment of any annuity or lump sum bene t contemplated in paragraph 2 (1) (a) of the Second Schedule prior to reaching normal retirement age;
[Sub-para. (v) substituted by s. 2 (1) (z) of Act 3 of 2008 and by s. 7 (1) (zA) of Act 17 of 2009.]
(vi) and (vii) . . .
[Sub-paras. (vi) and (vii) substituted by s. 2 (i) of Act 21 of 1995 and deleted by s. 2 (1) (zA) of Act 3 of 2008.]
(viii) and (ix) . . .
[Sub-paras. (viii) and (ix) substituted by s. 6 (1) (g) of Act 89 of 1969 and deleted by s. 4 (a) of Act 103 of 1976.]
(x) that a member who discontinues his or her contributions prior to his or her retirement date shall be entitled to—
(aa)an annuity or a lump sum bene t
contemplated in paragraph 2 (1) (a) of the
Second Schedule payable on that date; (bb)be reinstated as a full member under conditions prescribed in the rules of the fund; (cc)the payment of a lump sum bene t contemplated in paragraph 2 (1) (b) (ii) of the Second Schedule where that member’s interest in the fund is less than an amount‡ determined by the Minister by notice in the
Gazette; or
(dd) the payment of a lump sum bene t
contemplated in paragraph 2 (1) (b) (ii) of the Second Schedule where that member—
(A) ceases to be a resident; or
(B) departed from the Republic at the expiry
of a visa obtained for the purposes of—
[Item (dd) of para. (b) (x) of the proviso to the de nition of ‘retirement annuity fund’ substituted by s. 3 (1) (zD) 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.]
* When the Taxation Laws Amendment Bill 29 of 2015 was introduced in October 2015, clause 3 (6) and (7) provided that paras. (zB) and (zC) of clause 3 (1) (both substituting the same sub-para. (ii)) would come into operation on 1 March 2016 and 1 March 2018, respectively. However, the relevant committee of the National Assembly substituted ‘2016’ for ‘2018’ in subclause (7) (iro commencement date of para. (zC)). (See B 29A – 2015 and B 29B – 2015 in this regard.) It is submitted that the retention of para. (zB) might have been an oversight. The intention of the legislature was probably that only para. (zC) should come into operation and that para. (zB) should be deleted. There is, however, a further small discrepancy: para. (zB) ‘applies iro years of assessment commencing on or after 1 March 2016’ and although para. (zC) also ‘applies iro years of assessment commencing on or after 1 March 2016’, it applies ‘[s]ubject to subsection (8)’ – see footnote in annotation to para. (a) (i) of de nition of ‘pension fund’ in regard to wording of ‘subsection (8)’. It is expected that any uncertainty iro paras. (zB) and (zC) will be cleared up when the next amendment opportunity arises.
† See footnote in annotation to para. (a) (i) of de nition of ‘pension fund’. ‡ Amount determined as R7 000 — GN 467 in GG 29913 of 1 June 2007.
[Sub-para. (x) substituted by s. 3 (1) (p) of Act 20 of 2006, by s. 2 (1) (zB) of Act 3 of 2008 and by s. 7 (1) (zB) of Act 17 of 2009.]
(xi) that upon the winding up of the fund a member’s withdrawal interest therein must—
(aa) where the member received an annuity from
the fund on the date upon which the fund is wound up, be used to purchase an annuity (including a living annuity) from any other fund; or
(bb) in any other case, be paid for the member’s bene t into any other retirement annuity fund; [Sub-para. (xi) substituted by s. 2 (1) (zB) of Act 3 of 2008.]
(xii) that save—
(aa) as is contemplated in subparagraph (ii); (bb)for the transfer of any member’s total
interest in any approved retirement annuity fund into another approved retirement annuity fund;
[Item (bb) substituted by s. 5 (1) (r) of Act 35 of 2007.] (cc) for the bene t contemplated in subparagraph
(x) (cc);
[Item (cc) substituted by s. 5 (1) (r) of Act 35 of 2007 and
by s. 6 (1) (zE) of Act 7 of 2010.]
SAIT CompendIum oF TAx LegISLATIon VoLume 1 45
Prelex
Wording of item (dd) of para. (b) (x) of the proviso to the de nition of ‘retirement annuity fund’ in force until 1 March 2016
(dd) the payment of a lump sum bene t contemplated in paragraph 2 (1) (b) (ii) of the Second Schedule where that member emigrated from the Republic and that emigration is recognised by the South African Reserve Bank for purposes of exchange control;
INCOME TAX ACT – SECTIONS