Page 532 - SAIT Compendium 2016 Volume1

s 44 VALUE-ADDED TAX ACT 89 OF 1991 s 45
(9) The Commissioner may make or authorise a refund of any amount of tax which has become refundable to any person under the provisions of any regulation referred to in paragraph (d) of the de nition of ‘exported’ in section 1.
[Sub-s. (9) added by s. 27 (1) of Act 37 of 1996 and substituted by s. 31 of Act 44 of 2014 – date of commencement: 20 January 2015.]
(10) The amount determined under section 191 (3) of the Tax Administration Act must be accounted for as provided in section 16 (5), but any refundable amount (irrespective of the quantum thereof) is refundable in full to a vendor in respect of its nal tax period on the cancellation of its registration as a vendor.
[Sub-s. (10) added by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
45 Interest on delayed refunds
(1) Where the Commissioner does not within the period of 21 business days after the date on which the vendor’s return in respect of a tax period is received by an of ce of the South African Revenue Service refund any amount refundable in terms of section 44 (1), interest shall be paid on such amount at the prescribed rate (but subject to the provisions of section 45A) and calculated for the period commencing at the end of the rst- mentioned period to the date of payment of the amount so refundable: Provided that—
(i) where such return made by the vendor is incomplete or defective in any material respect the said period of 21 business days shall be reckoned from the date on which—
(aa) the vendor recti es the return and satis es the Commissioner in writing that the incompleteness or defectiveness of the return does not affect the amount refundable; or
[Sub-para. (aa) substituted by s. 101 (a) of Act 30 of 1998.] (bb)information is received by the Commissioner to enable him to make an assessment upon the vendor re ecting the amount properly refundable
to the vendor;
[Sub-para. (bb) substituted by s. 101 (a) of Act 30 of 1998.] [Para. (i) substituted by s. 43 (a) of Act 27 of 1997 and
amended by s. 101 (a) of Act 30 of 1998.] (iA)where the vendor is in default in respect of any of his obligations under this Act or any other Act administered by the Commissioner, to furnish a return as required by such Act, the said period of 21 business days shall be reckoned from the date on which any such outstanding return or returns furnished by the vendor as required by such Act are received by an of ce of the South African Revenue
Service;
[Para. (iA) inserted by s. 43 (a) of Act 27 of 1997 and substituted by s. 101 (b) of Act 30 of 1998 and by s. 169 (b) of Act 60 of 2001.]
personal delivery, until the date on which such
access is granted;
[Para. (ii) substituted by s. 33 of Act 136 of 1992 and by s. 101 (b) of Act 30 of 1998.]
(iiA) where the vendor—
(aa)has not furnished the Commissioner with
the particulars of the banking account of the
enterprise; or
(bb) has not noti ed the Commissioner that a refund
or other amount be transferred to a bank account or an account with a similar institution other than that of the vendor as contemplated in the proviso to section 44 (3) (d),
the said period of 21 days shall be reckoned from the date the vendor furnishes the Commissioner with the particulars of the bank account or account with a similar institution of the enterprise or from the date the vendor has noti ed the Commissioner that a refund or other amount be transferred to a bank account or an account with a similar institution other than that of the vendor;
[Para. (iiA) inserted by s. 44 (1) of Act 61 of 2008.]
(iii) wherethevendorisnotaresidentoftheRepublicand— (aa)has not appointed a representative vendor as contemplated in section 48 (1) in the Republic or has not furnished the Commissioner with the particulars of such representative vendor;
or
(bb) has not opened a banking account in the Republic
as required by paragraph (ii) (bb) of the proviso to section 23 (2) or has not furnished the Commissioner with the particulars of such banking account,
the said period of 21 business days shall be reckoned from the date the vendor furnishes the Commissioner with the particulars of such representative vendor or banking account, as the case may be.
[Para. (iii) added by s. 43 (b) of Act 27 of 1997.]
[Sub-s. (1) amended by s. 4 of Act 61 of 1993, substituted by s. 24 of Act 20 of 1994 and amended by s. 169 (a) of Act 60 of 2001.]
(2) Where the amount of any interest paid to a person in terms of subsection (1) is in excess of the correct amount, the Commissioner may recover the amount of the excess under section 40 (2) (a) as if it were tax payable by such person.
(3) The payment by the Commissioner of any interest under the provisions of this section shall be deemed to be a drawback from revenue charged to the National Revenue Fund.
[Sub-s. (3) added by s. 19 (1) of Act 140 of 1993 and amended by s. 33 of Act 37 of 1996.]
[NB: S. 45 has been substituted by s. 271 of the Tax Administration Act 28 of 2011, a provision which will be put into operation by proclamation. Sub-s. (2) of s. 45 has subsequently been substituted by s. 32 of Act 44 of 2014 (as amended by s. 136 (1) of Tax Administration Laws Amendment Act, 2015 wef 20 January 2015) wef the date on which the substitution of s. 45 by the Tax Administration Act 28 of 2011 takes effect. See Pendlex below.]
(ii)
where the Commissioner is prevented from satisfying himself as to the amount refundable in terms of section 44 (1) by reason of not being able to gain access to the books and records of the vendor concerned after having, within a reasonable time, made a request by registered post, facsimile transmission, electronic means or personal delivery, to the vendor for access to such books and records during the period of 21 business days contemplated in this subsection, the said period of 21 business days shall be suspended from the date of despatch of such request by registered post, facsimile transmission, electronic means or the date of delivery of the
Pendlex (to be put into operation by proclamation)
45 Interest on delayed refunds
(1) Where the Commissioner does not within the period of 21 business days after the date on which the vendor’s return in respect of a tax period is received by a SARS of ce refund any amount refundable under the Tax Administration Act, interest will be paid on such amount in accordance with Chapter 12 of that Act.
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SAIT CompendIum oF TAx LegISLATIon VoLume 1