Page 535 - SAIT Compendium 2016 Volume1

s 50A VALUE-ADDED TAX ACT 89 OF 1991 s 53
of that enterprise at any time shall be determined
accordingly.
[Sub-s. (7) amended by s. 271 of Act 28 of 2011 – date of commencement: 1 October 2012.]
(8) If the Commissioner is of the opinion that any person who is one of the members should no longer be regarded as such for the purposes of subsection (7) (c) and (d) and the Commissioner gives notice to that effect, that person shall no longer be liable in terms of that subsection for anything done after the date speci ed in that notice and shall be deemed to have ceased to be a member of the body of persons referred to in subsection (7) (e).
[S. 50A inserted by s. 44 of Act 27 of 1997.]
51 Bodies of persons, corporate or unincorporate (other than companies)
(1) Subject to the provisions of section 46, where any body of persons, whether corporate or unincorporate (other than a company), carries on or is to carry on any enterprise—
(a) such body shall be deemed to carry on such enterprise
as a person separate from the members of such body;
(b) registration of that body as a vendor shall be effected separately from any registration of any of its members
in respect of any other enterprise;
(c) liability for tax in respect of supplies by that body
shall be determined and calculated in respect of the enterprise carried on by it as an enterprise carried on independently of any enterprise carried on by any of its members, and any refund relating to that body’s enterprise which is payable in terms of section 44 shall be made to that body; and
(d) the duties and obligations imposed by this Act on any vendor or other person shall, as respects the enterprise carried on by that body, be performed by it separately from the duties and obligations imposed on any of its members.
(2) Where any such body is a partnership or other unincorporated body and is dissolved in consequence of the retirement or withdrawal of one or more (but not all) of its members or the admission of a new member and a new partnership or unincorporated body comes into being consisting of the remaining members of the dissolved partnership or body, as the case may be, or such remaining members and one or more new members and the new partnership or body continues to carry on the enterprise of the dissolved partnership or body as a going concern, the dissolved partnership or body and the new partnership or body, as the case may be, shall (unless the Commissioner, having regard to the circumstances of the case, otherwise directs) for the purposes of this Act be deemed to be one and the same partnership or body, as the case may be.
(3) Subject to the provisions of section 46, every member of a partnership shall be liable jointly and severally with other members of the partnership for performing the duties of the partnership in terms of this Act and paying the tax imposed by this Act on the partnership in respect of supplies made by the partnership while such member was a member of the partnership: Provided that this subsection shall not apply to any such member of a partnership who in relation to that partnership is a partner en commandite or a special partner as de ned in the Special Partnerships’ Limited Liability Act, 1861 (Act 24 of 1861), of the Cape of Good Hope or in Law 1 of 1865 of Natal, who has not held himself out as an ordinary or general partner of the partnership concerned.
52 Pooling arrangements
(1) Any pool managed by any body for the sale of agricultural, pastoral or other farming products, being a pool contemplated in section 17 of the Marketing of Agricultural Products Act, 1996 (Act 47 of 1996) may on written application by such body, for the purposes of this Act be deemed to be an enterprise or part of an enterprise carried on by that body separately from the members of such body: Provided that such body may—
(i) elect in writing that the pool be treated as a separate enterprise for the purposes of this Act and may apply for such pool to be registered separately in terms of section 50; and
(ii) notwithstanding the provisions of section 54 (1) and (2), if it makes an election in writing, be treated for the purposes of this Act as a principal and not as an agent of its members.
[Sub-s. (1) amended by s. 45 of Act 27 of 1997 and substituted by s. 171 (a) of Act 60 of 2001.]
(2) Notwithstanding the provisions of section 54, any rental pool scheme operated and managed by any person for the bene t of some or all of—
(a) the owners of time-sharing interests in a property
time-sharing scheme as de ned in section 1 of the Property Timesharing Control Act, 1983 (Act 75 of 1983);
(b) the owners of sectional title interests in a sectional title scheme as de ned in section 1 of the Sectional Title Act, 1986 (Act 95 of 1986); or
(c) the shareholders in a Shareblock Company as de ned in section 1 of the Shareblocks Control Act, 1980 (Act 59 of 1980),
is regarded for the purposes of this Act as a separate enterprise carried on by such person separately from the owners and shall be registered separately under section 50: Provided that—
(i) the owners or shareholders must elect in writing that the rental pool be treated separately; and
(ii) such a rental pool scheme is, notwithstanding the provisions of section 54 (1) and (2), treated for the purposes of this Act as a principal and not as an agent of the owners or shareholders.
[Sub-s. (2) substituted by s. 171 (b) of Act 60 of 2001.] [S. 52 substituted by s. 39 of Act 136 of 1991.]
53 Death or insolvency of vendor
(1) (a) Where, after the death of any vendor or the sequestration of his estate, any enterprise previously carried on by the vendor continues to be carried on by or on behalf of the executor or trustee of his estate or anything is done in connection with the termination of the enterprise, the estate of the vendor, as represented by the executor or trustee, as the case may be, shall for the purposes of this Act be deemed to be a vendor in respect of the enterprise.
(b) Where the provisions of paragraph (a) are applicable, the deceased vendor and his estate or the vendor whose estate is sequestrated and his estate, as the case may be, shall, as respects the enterprise in question, be deemed for the purposes of this Act to be one and the same person.
(2) Where a mortgagee is in possession of any land or other property previously mortgaged by the mortgagor, being a vendor, and the mortgagee carries on any enterprise of the mortgagor in relation to such land or other property, the mortgagee shall, from the date on which the mortgagee took possession of that land or
SAIT CompendIum oF TAx LegISLATIon VoLume 1 527
VALUE-ADDED TAX ACT