Page 686 - SAIT Compendium 2016 Volume1

s 3A TRANSFER DUTY ACT 40 OF 1949 s 5
(a) the nancier shall be deemed not to have acquired any property under the sharia arrangement; and
[Para. (a) substituted by s. 3 (1) (a) of Act 24 of 2011 – date of commencement: 1 January 2013.]
(b) the client shall be deemed to have acquired property from the seller—
(i) for an amount equal to the consideration paid by the nancier to the seller; and
(ii) at such time as the nancier acquired the property from the seller by virtue of the transaction between the seller and the nancier.
[Para. (b) substituted by s. 3 (1) (a) of Act 24 of 2011 – date of commencement: 1 January 2013.]
(2) For the purpose of the payment of the duty in respect of any diminishing musharaka as de ned in section 24JA (1) of the Income Tax Act, 1962 (Act 58 of 1962)—
(a) the bank shall be deemed not to have acquired any
interest shall, subject to the provisions of subsection (3), become payable at a rate equal to 10 per cent per annum of the amount of duty which remains unpaid, calculated in respect of each completed month in the period from that date to the date of payment.
[Sub-s. (1A) inserted by s. 1 (1) (c) of Act 32 of 2004.]
(2) For the purpose of subsection (1) a deposit on account of duty shall be deemed to be a payment of duty.
(3) Whenever the Commissioner is satis ed that the delay in the determination of the value on which the duty is payable cannot be ascribed to the person liable to pay the duty, he or she may allow a reasonable extension of time within which the duty may be paid without interest if, within six months of the date of acquisition of the property—
(a) a deposit on account of the duty payable is made to
the Commissioner of an amount equal to the duty calculated on the amount of the consideration paid or payable or on the declared value, as the case may be; and
(b) application is made in writing to the Commissioner for such extension of time.
[Sub-s. (3) substituted by s. 7 of Act 60 of 2001 and amended by s. 1 (1) (d) of Act 32 of 2004.]
[S. 4 amended by s. 1 (1) (a) of Act 32 of 2004.]
5 Value of property on which duty payable
(1) The value on which duty shall be payable shall, subject to the provisions of this section—
(a) where consideration is payable by the person who
has acquired the property, be the amount of that
consideration; and
(b) where no consideration is payable, be the declared
value of the property.
(2) (a) If a transaction whereby property has been
acquired, is, before registration of the acquisition in a deeds registry, cancelled, or dissolved by the operation of a resolutive condition, duty shall be payable only on that part of the consideration which has been or is paid to and retained by the seller and on any consideration payable by the buyer for or in respect of the cancellation thereof, provided that on cancellation or dissolution of that transaction, such property completely reverts to the seller and the original buyer has relinquished all rights and has not received nor will receive any consideration arising from such cancellation or dissolution.
[Para. (a) substituted by s. 2 (1) of Act 45 of 2003.]
(b) Upon the subsequent disposal of property referred to in paragraph (a), the person so disposing of it shall, in the declaration to be made by him in terms of section fourteen, set forth the circumstances of such previous transaction and of the cancellation thereof and shall furnish particulars relating to the payment of duty in connection therewith, and any duty payable in connection with such previous transaction but still unpaid shall be paid by the person so disposing of the property, who may thereupon recover the duty so paid from the person liable for the payment thereof
in terms of section three.
(3) Where a transaction provides for the payment of
the whole or any part of the consideration by way of rent, royalty, share of pro ts or any other periodical payment, or otherwise than in cash, the value of such consideration shall be determined in accordance with the provisions of section eight.
(b)
property under the sharia arrangement;
(i) where the bank and the client jointly acquire
property, the client shall be deemed to have acquired the bank’s interest in the property— (aa) for an amount equal to the amount paid by
the bank in respect of the bank’s interest in
the property; and
(bb) at the time that the seller of the asset was
divested of any interest in the property by virtue of the transaction between the seller and the bank; and
(ii) where the bank acquires an interest in property from the client, the bank shall be deemed not to have acquired any interest in property from the client and the client shall be deemed not to have subsequently acquired any interest in that property from the bank.
(3) For the purpose of the payment of duty in respect of any sukuk as de ned in section 24JA (1) of the Income Tax Act, 1962 (Act 58 of 1962), the trust shall be deemed not to have acquired the asset from the government of the Republic.
[Sub-s. (3) added by s. 3 (1) (b) of Act 24 of 2011 – date of commencement: 1 January 2013.]
[S. 3A inserted by s. 2 (1) of Act 7 of 2010 – date of commencement: 1 January 2013.]
4 Penalty and interest on late payment of duty
(1) If any duty in respect of any transaction entered into before 1 March 2005, remains unpaid after the date of the expiration of the period referred to in section 3, the Commissioner must in accordance with Chapter 15 of the Tax Administration Act impose a penalty, at the rate of 10 per cent per annum on the amount of the unpaid duty, calculated in respect of each completed month in the period from that date to the date of payment.
[Sub-s. (1) amended by s. 2 of Act 70 of 1963, substituted by s. 1 of Act 72 of 1970 and by s. 3 (1) of Act 87 of 1982, amended by s. 1 (1) (b) of Act 32 of 2004 and substituted by s. 271 of Act 28 of 2011.]
(1A) If any duty in respect of any transaction entered into on or after 1 March 2005, remains unpaid after the date of the expiration of the period referred to in section 3,
Pendlex
Heading of s. 4, as substituted by s. 271 of Act 28 of 2011, read with para. 3 (a) of Schedule 1 to that Act, with effect from a date to be proclaimed
4 Penalty on late payment of duty
[Heading of s. 4 as substituted by s. 271 of the Tax Administration Act 28 of 2011, read with para. 3 (a) of Schedule 1 to that Act – commencement on a date to be proclaimed.]
678 SAIT CompendIum oF TAx LegISLATIon VoLume 1
Pendlex
Sub-s. (1A) has been deleted by s. 271 of Act 28 of 2011, read with para. 3 (c) of Schedule 1 to that Act, with effect from a date to be proclaimed.