Page 534 - SAIT Compendium 2016 Volume1

s 50 VALUE-ADDED TAX ACT 89 OF 1991 s 50A
(4) The Commissioner shall cancel the separate registration of any separate enterprise, branch or division on the cancellation of the registration of the vendor referred to in subsection (1).
(5) Where any separate enterprise, branch or division separately registered under this section fails to do anything required to be done under this Act, the liability for the doing of that thing shall revert to the vendor referred to in subsection (1).
(6) Notwithstanding the preceding provisions of this section, any decision or determination of the Commissioner made under section 15 or 27 in respect of the vendor referred to in subsection (1) of this section shall, for the purposes of this Act, apply equally to each separate enterprise, branch or division of the vendor which is separately registered under this section: Provided that where a decision or determination is made by the Commissioner under subsection (2) of section 27 which applies in respect of any such separate enterprise, branch or division, this subsection shall not be construed as preventing the Commissioner from making a separate decision or determination under subsection (4) of the said section in the circumstances contemplated in that subsection in respect of any other separate enterprise, branch or division of the said vendor.
[Sub-s. (6) substituted by s. 38 of Act 136 of 1991 and by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
50A Separate persons carrying on same enterprise under certain circumstances deemed to be single person
(1) Notwithstanding the provisions of section 23, if the Commissioner makes a decision under this section, the persons named in the decision shall be deemed to be a single person carrying on the activities of an enterprise described in the decision and that person shall be liable to be registered in terms of section 23 with effect from the date of the decision or, if the decision so provides, from such date as may be speci ed therein.
[Sub-s. (1) substituted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(2) The Commissioner shall not make a decision under this section naming any person unless he or she is satis ed—
(a) that such person is making or has made taxable
supplies; and
(b) that the activities in the course of which he or she
makes or made those taxable supplies form only part of certain activities which should properly be regarded as those of the enterprise described in the decision, the other activities of that enterprise being carried on at that time or previously by one or more other persons; and
[Para. (b) substituted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(c) that, if all the taxable supplies of that enterprise were taken into account, a person carrying on that enterprise should at that time be liable to be registered in terms of subsection (1); and
(d) that the main reason or one of the main reasons for the person concerned carrying on the activities rst referred to in subparagraph (b) in the way he does is the avoidance of a liability to be so registered (whether that liability would be his, another person’s or that of two or more persons jointly).
[Sub-s. (2) amended by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(3) A decision made under this section shall be served on each of the persons named in it.
[Sub-s. (3) substituted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(4) Where, after a decision has been given under this section specifying a description of the enterprise, it appears to the Commissioner that a person who was not named in that decision is making taxable supplies in the course or furtherance of activities which should properly be regarded as part of the activities of that enterprise, the Commissioner may make and serve on him or her a supplementary decision referring to the earlier decision and the description of the enterprise speci ed in it and adding that person’s name to those of the persons named in the earlier decision with effect from—
(a) the date on which he began to make those taxable
supplies; or
(b) if it was later, the date with effect from which the
single person referred to in the earlier direction
became liable to be registered in terms of this section.
[Sub-s. (4) amended by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(5) If, immediately before a decision (including a supplementary decision) is made under this section, any person named in the decision is registered in respect of the taxable supplies made by him or her as contemplated in subsection (2) or (4), he or she shall cease to be liable to be so registered with effect from—
(a) the date with effect from which the single person concerned became liable to be registered; or
(b) the date of the decision, whichever date is the later.
[Sub-s. (5) substituted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(6) In relation to an enterprise speci ed in a decision (including a supplementary decision) under this section, the persons named in such decision, who together are deemed to be the liable person, are in subsections (7) and (8) referred to as the members.
[Sub-s. (6) substituted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(7) For the purposes of this Act, where a decision is made under this section—
[Words in sub-s. (7) preceding para. (a) substituted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(a) the person carrying on the enterprise speci ed in the decision shall be registrable in such name as the members may jointly nominate upon compliance with the provisions of section 23 (2);
[Para. (a) substituted by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(b) any supply of goods or services by or to one of the members in the course of the activities of such single person shall be deemed to be a supply by or to such single person;
(c) each of the members shall be jointly and severally liable for any tax due by such single person;
(d) notwithstanding the provisions of paragraph (c), any failure by such single person to comply with any requirement imposed upon him by or under this Act shall be deemed to be a failure by each of the members severally; and
(e) subject to paragraphs (a) to (d) of this subsection, the members shall be deemed to be a body of persons carrying on the enterprise of such single person and any question as to the scope of the activities
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SAIT CompendIum oF TAx LegISLATIon VoLume 1