Page 674 - SAIT Compendium 2016 Volume1

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ESTATE DUTY ACT 45 OF 1955 s 16
13 Right of recovery by executor
(1) Every executor who is required to pay duty in respect of any property referred to in paragraph (a) (i), or in the proviso to paragraph (b) (i) or (b) (iA), or in paragraph (b) (ii), of section 11, shall be entitled to recover from the person liable therefor the duty attributable to such property.
[Sub-s. (1) substituted by s. 7 (1) (a) of Act 92 of 1971.] (2) The duty attributable to any such property shall be a sum which bears to the full duty payable in respect of the estate (before the deduction in accordance with the provisions of section 16 of any amount in respect of transfer duty or donations tax) the same ratio as that portion of the net value of the estate (as determined under section 4) which is attributable to the inclusion in the estate of the value of the said property, bears to the net value of the estate as so determined, reduced, in any case in which there is, in accordance with the said section 16, deducted from the duty payable in respect of the estate, any amount of transfer duty or donations tax paid in respect of any property included in the estate which has accrued to the person liable for the duty attributable to that property, by
the amount of the transfer duty or donations tax so paid.
[Sub-s. (2) substituted by s. 7 (1) (b) of Act 92 of 1971.] (3) Whenever duty is in terms of section 11 (b) (i) payable by more than one person on the value of any property referred to in section 3 (3) (a), the amount of duty payable by each such person shall be such proportion of the total duty attributable to the total value of the said property, as bears to the said total duty the same ratio as so much of the amount which such person is entitled to recover under any policy as is included in the estate under section 3 (3)
(a), bears to the total value of the said property.
[Sub-s. (3) substituted by s. 14 (1) of Act 87 of 1988.]
14 Right to mortgage property
To provide for the payment of any duty, the person liable therefor may, with the consent of the Master, borrow any moneys or mortgage any property in respect of which the liability for duty arises, notwithstanding any provision to the contrary contained in any deed or testamentary disposition or in any law.
15 Recovery of duty paid in certain cases
Any person who has disposed of property in respect of which a liability for duty in accordance with subparagraph (ii) of paragraph (b) of section eleven, thereafter arises, without having received full consideration therefor, may recover from the person to whom he has disposed of such property the amount of duty payable by him in respect thereof.
16 Deduction of transfer duty and donations tax
There shall be deducted from any duty payable under this Act—
(a) any transfer duty which is proved to the satisfaction
of the Commissioner to have been paid in respect of the acquisition from the deceased or his estate of any property included in the estate for the purposes of the assessment of duty, by any person liable for the duty attributable to that property;
(b) .. .
[Para. (b) amended by s. 11 of Act 77 of 1964 and deleted
(if any) between the duty assessed and any deposit made on account of the duty.
[Sub-s. (1) further substituted by s. 3 (1) of Act 21 of 2012, a provision which will come into operation on the date on which para. 18 of Schedule 1 to Act 28 of 2011 comes into operation.
(2) Whenever the Commissioner is satis ed that the delay in the payment of duty within the period of thirty days from the date of payment noti ed in accordance with subsection (2) of section nine, or within the period of twelve months from the date of death, as the case may be, has not been occasioned either by the executor or by any person liable for the duty, he may allow an extension of time within which the duty may be paid without interest if, before the expiration of the said period of thirty days or the said period of twelve months, as the case may be or such further period as the Commissioner may allow—
(a) a deposit on account of the duty payable is made of an amount which, in the opinion of the Commissioner, is reasonable, regard being had to the amount of the duty payable; and
(b) application is made in writing to the Commissioner for such extension of time.
11 Person liable for duty
The person liable for the duty shall be—
(a) where duty is levied on property of the deceased
which falls under subsection (2) of section three— (i) as to any property referred to in paragraph (a) or (b) of that subsection, the person to whom any
advantage accrues by the death of the deceased; (ii) as to any other property, the executor;
(b) where duty is levied on property which, in accordance with subsection (3) of section three, is deemed to be property of the deceased—
(i) as to property referred to in paragraph (a) of that subsection, the executor: Provided that where the amount due under the policy is recoverable by any person other than the executor, the person liable for the duty shall be the person entitled to recover the amount due under the policy;
(iA) as to property referred to in paragraph (a)bis of that subsection, the executor: Provided that where the bene t in question accrues to any person other than the executor, the person liable for the duty shall be such other person;
[Sub-para. (iA) inserted by s. 3 (1) of Act 56 of 1966.]
(ii) as to any property referred to in paragraph (b) of that subsection, the donee;
[Sub-para. (ii) substituted by s. 13 (1) of Act 87 of 1988 and by s. 3 of Act 37 of 1995.]
(iii) as to any property referred to in paragraph (cA) or (d) of that subsection, the executor.
[Sub-para. (iii) substituted by s. 3 of Act 37 of 1995.]
12 Duty payable by executor
Notwithstanding anything to the contrary contained in section 11, any duty payable under this Act shall be payable by and recoverable from the executor of the estate subject to the duty, to the extent contemplated in Chapters 10 and 11 of the Tax Administration Act.
[S. 12 amended by s. 4 (1) of Act 18 of 2009 and substituted by s. 271 of Act 28 of 2011.]
12A and 12B . . .
[Ss. 12A and 12B inserted by s. 1 of Act 21 of 2006 and repealed by s. 271 of Act 28 of 2011.]
(c)
by s. 15 (1) of Act 87 of 1988.]
without in any way modifying or adding to the rights of any person under an agreement entered into by the Government of the Republic with the Government of any other country or territory relating to the prevention of or relief from double taxation in respect of estate duty, any amount of any death duties
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SAIT CompendIum oF TAx LegISLATIon VoLume 1