Page 66 - SAIT Compendium 2016 Volume1

s 6quin
INCOME TAX ACT 58 OF 1962
s 7
(4) . . .
[Sub-s. (4) deleted by s. 7 (1) (a) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 January 2016; the deletion applies iro years of assessment commencing on or after that date.]
(5) Where, during any year of assessment, a rebate was deducted in terms of this section from the normal tax payable by a resident and, in any year of assessment subsequent to that year of assessment, that resident receives any amount by way of refund in respect of the amount so deducted or is discharged from any liability in respect of that amount, so much of the amount so received or so much of the amount of that discharge as does not exceed that rebate must be deemed to be an amount of normal tax payable by that resident in respect of that subsequent year of assessment.
[Sub-s. (5) added by s. 4 (1) (d) of Act 22 of 2012 (addition deemed to have come into operation on 1 January 2012 and applies iro amounts of tax levied and withheld or imposed by any sphere of government of any country other than the Republic during years of assessment commencing on or after that date) and substituted by s. 7 (1) (b) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 January 2016; the substitution applies iro years of assessment commencing on or after that date.]
[S. 6quin inserted by s. 6 (1) of Act 104 of 1979, repealed by s. 6 of Act 94 of 1983 and inserted by s. 12 (1) of Act 24 of 2011.]
(a)
(b)
(i) levied by any sphere of government of any country—
(aa) other than the Republic; and
(bb) with which the Republic has concluded
an agreement for the avoidance of double
taxation; and
(ii) withheld when the amount is paid to that
resident by the person making the payment; or imposed by any sphere of government of any country— (aa) other than the Republic; and
(bb) with which the Republic has not concluded an
agreement for the avoidance of double taxation, in terms of the laws of that country,
a rebate determined in accordance with subsection (2) must be deducted from the normal tax payable by that resident.
(2) (a) For the purposes of paragraph (a) of subsection (1), the rebate is an amount equal to the lesser of—
(i) the amount of normal tax which is attributable to the amount received or accrued as contemplated in that subsection; or
(ii) the amount of tax levied and withheld as contemplated in that paragraph.
(b) For the purposes of paragraph (b) of subsection (1), the rebate is an amount equal to the lesser of—
(i) the amount of normal tax which is attributable to the amount received or accrued as contemplated in that subsection; or
(ii) the amount of tax imposed as contemplated in that paragraph.
(3) No rebate may be deducted in terms of this section if—
(a) the amount of tax levied and withheld as contemplated in subsection (1) (a);
(b) the amount of tax imposed as contemplated in subsection (1) (b); or
(c) any portion of any amount contemplated in
paragraph (a) or (b),
is—
(i) taken into account in determining any amount of any rebate that is, in terms of section 6quat (1), deducted from the normal tax payable by that resident; or
(ii) deducted from the income of that resident in terms of section 6quat (1C).
Prelex
Wording of sub-ss. (4) and (5) in force until 1 January 2016
(4) For the purposes of subsection (2) (a) (ii) and (b) (ii), the amount of any tax—
(a) levied and withheld as contemplated in subsection
(1) (a); or
(b) imposed as contemplated in subsection (1) (b), must be translated to the currency of the Republic on the last day of the year of assessment in which that tax is so levied and withheld or imposed, by applying the average exchange rate for that year of assessment.
(5) Where, during any year of assessment, a rebate has been deducted in terms of this section from the normal tax payable by a resident as a result of any amount of tax having been—
(a) levied and withheld as contemplated in subsection (1) (a); or
(b) imposed as contemplated in subsection (1) (b),
and, in any year of assessment subsequent to that year of assessment, the resident—
(i) receives any amount by way of refund in respect of the amount of tax so levied and withheld; or
(ii) is discharged from any liability in respect of the amount of tax so imposed,
so much of the amount so received or the amount of that discharge as does not exceed that rebate must be deemed to be an amount of normal tax payable by that resident in respect of that subsequent year of assessment.
[NB: A sub-s. (3A) has been inserted by s. 13 (1) (b) of Act 24 of 2011, a provision which will be put into operation on a date to be determined by the Minister. This sub-s. (3A) has subsequently been substituted by s. 4 of Act 39 of 2013 – date of commencement: 16 January 2014. See Pendlex below.]
Pendlex
(3A) Where an amount of tax is levied and withheld as contemplated in subsection (1) (a), no rebate may be deducted in terms of this section if the resident contemplated in subsection (1) does not, within 60 days from the date on which that amount of tax is withheld, submit to the Commissioner a return that the amount of tax was levied and withheld as contemplated in subsection (1) (a).
[Sub-s (3A) inserted by s. 13 (1) (b) of Act 24 of 2011
– date of commencement: a date determined by the Minister by notice in the Gazette, which date must be later than 1 January 2012, and applies in respect of amounts of tax withheld or imposed by any sphere of government of any country other than the Republic during years of assessment commencing on or after the date so determined and substituted by s. 4 of Act 39 of 2013 (by replacing ‘a declaration in such form as may
be required by the Commissioner that’ with ‘a return that’) – date of commencement: 16 January 2014.]
6sex . . .
[S. 6sex inserted by s. 14 (1) of Act 24 of 2011 and repealed by s. 6 (1) of Act 22 of 2012 – repeal is deemed to have come into operation on 1 April 2012, the date on which s. 6sex originally came into operation.]
7 When income is deemed to have been accrued or to have been received
(1) Income shall be deemed to have accrued to a person
notwithstanding that such income has been invested, accumulated or otherwise capitalized by him or that such income has not been actually paid over to him but remains
58 SAIT CompendIum oF TAx LegISLATIon VoLume 1