Revenue Laws Amendment Act [No. 19 of 2001]
Government Gazette
REPUBLIC OF SOUTH AFRICA
Vol. 433 Cape Town 27 July 2001 No. 22532
THE PRESIDENCY
No. 709 27 July 2001
It is hereby notified that the President has assented to the following Act, which is hereby published for general information:–
No. 19 of 2001: Revenue Laws Amendment Act, 2001

GER’ERAL EXPLASATORY NOTE:
[ ] Words in bold type in square b ackets indicate omissions from existing enactments.
Words underlined with a solid line indicate insertions in existing enactments.
(E~zglish text signed by the President.) (Assented to 26 Jul!) 2001.)
ACT To amend the Estate Duty Act, 1955, so as to further regulate the valuation of property for purposes of inclusion and deduction purposes; to amend the Income Tax Act, 1962, so as to fix the rates of normal tax payable by persons other than companies in respect of taxable incomes for the years of assessment ending on 28 February 2002 and 30 June 2002, and by companies in respect of taxable incomes for the years of assessment ending during the period of 12 months ending on 31 March 2002; to amend the definition of “gross income” so as to avoid a double inclusion of an amount therein; to regulate the tax treatment of pension funds where employees are transferred from a local authority to a municipal entity; to take capital gains into account in the formula used for determining the rate at which special remuneration or lump sum payments must be taxed; to increase the primary rebate for individuals; to further regulate the recoupment provisions in respect of any distribution of an asset to a shareholder; to amend the definition f “foreign dividend” to exclude certain amounts; to increase the amount of dividends and interest which are exempt from tax; to provide for the deduction of pre-production interest in respect of certain depreciable assets; to provide for a scrapping allowance in respect of certain depreciable assets; to provide for the deduction of an amount invested by a small business corporation in certain manufacturing assets; to provide for an allowance in respect of investments in certain aircraft hangars. aprons, runways and taxiways; to provide for an additional industrial investment allowance in respect of qualifying strategic industrial prqjects; to further regulate the deduction in respect of buildings used in a process of manufacturing; to regulate the treatment of certain income of non-resident trusts; to further regulate the taxation of long-term insurers; to further regulate the limitation on trading activities of a public benefit organisation; to further regulate electronic communication with the Commissioner; to provide for the payment of employees’ tax by directors of private companies; to increase the provisional tax threshold; to further regulate the provisions relating to the taxation of capital gains; and to provide for certain consequential and textual amendments; to amend the Customs and Excise Act, 1964, so as to provide that requirements in respect of any report listing and describing cargo carried by or loaded on to any ship, aircraft, railway train or other vehicle and any outturn report to be submitted to the Controller may be prescribed by rule: to provide for the removal of goods in bond by a licensed remover; to provide for the removal of goods for export by a licensed remover; to reduce the period for which goods may be stored in a customs and excise warehouse from five years to two years; to make provision that the Commissioner may determine by rule the time when excisable
goods or fuel levy goods manufactured in the Republic shall be entered or deemed to be entered for home consumption and the payment of duty on such goods, restrict the licensing of customs and excise storage warehouses, cancel the licence of any existing storage warehouse and allow any imported goods to be mixed with locally produced excisable or fuel levy goods of the same class or kind in a customs and excise warehouse on payment of any difference of duty; to provide that goods so used shall be sub,ject to the duties leviable and the manufacturing, accounting and removal procedures prescribed in terms of excisable o r fuel levy goods manufactured in such warehouse; to provide further for provisions that regulate the removal of goods from a customs and excise warehouse; to provide that export bills of entry must be delivered before the goods are exported or at such times and in the circumstances provided by rule; to provide that imported goods may be delivered by the master, pilot or other carrier, container operator or depot operator to certain persons licensed or registered on compliance with such conditions or procedures as may be prescribed by rule and when liability for duty shall cease in respect of such goods; to insert a new section which provides for procedures relating to the registration of persons participating in activities regulated by the Act and the refusal of any application for registration and the suspension or cancellation of a registration and matters incidental thereto; to further regulate provisions relating to licensing: to provide for the activities for which a licence is required, the persons who are required to licence, the procedures and other requirements to be prescribed in the Notes, to the item in Schedule No. 8 in which such licence is specified and in the rules, and to specify the circumstances in which the Commissioner may refuse an application for a new licence or renewal of a licence o r cancel or suspend a licence; to further provide for requirements in respect of the licensing of clearing agents; to provide for the licensing of a remover of goods in bond, the goods which are to be removed by such licensed remover, the application for such licence, the liability of the remover of goods in bond and other persons in respect of any goods removed or carried by the remover and matters incidental thereto; to confer accredited client status on any applicant who is licensed or registered under the Act; to prescribe the requirements in respect of such status and matters incidental thereto; to introduce an invoice price basis of valuation for excise duty purposes in respect of goods manufactured in the Republic and specified in certain items of Section B of Par t 2 of Schedule No. 1; to provide for a refund of fuel levy on distillate fuel and the levy leviable on diesel in terms of the Road Accident Fund Act, 1996, and to provide for matters connected therewith; to further regulate certain provisions in respect of which deductions are allowed from the dutiable quantities and to limit such deductions to quantities not exceeding these specified in each case; to regulate electronic communication for the purposes of customs and excise procedures and to provide for matters connected therewith; to amend Schedule No. 1 to the said Act and the effective date thereof; and to provide for the continuation of amendments to the Schedules; to amend the Stamp Duties Act, 1968. so as to remove stamp duties on bills of exchange and promissory notes, bills of entry, securities and suretyships; to further regulate the stamp duties on debit entries: and to provide for certain consequential and textual amendments; to amend the Value-Added Tax Act, 1991, so as to further define certain expressions and to simplify and revise the provisions relating to the supply of accommodation; to enable the Commissioner to publish the name and registration numbers of vendors; to regulate the VAT consequences on the transfer of all assets and liabilities of a disestablished local authority to a new local authority so as to ensure that it will not constitute a supply subject to VAT when the consolidation of their accounting systems takes place; to regulate the exemption in respect of dwellings in the case of employers and local authorities who supply staff accommodation, to make it clear that any officer under the Commissioner's control. direction or supervision may be authorised to collect VAT on importation of goods; to make provision for a flat rate scheme in certain circumstances for small
scale farmers; to pre\,ent claims f o r refunds of certain amounts of V.4T after five years: to make it an offence not to issue a tax invoice to a recipient as required by the Act; and to make allowance for the addition of small quantities of minerals,
itamins and similar additives to increase the nutritional value of maize meal and milk; to amend the Road Accident Funds Act. 1996, so as to provide for a refund by the Road Accident Fund of certain levies leviable in terms of that Act; to amend the Uncertificated Securities Tax Act, 1998. so as to provide for an exemption in respect of a change in beneficial ownership in securities which are interest bearing debentures listed by a financial exchange; to amend the Skills Development Levies Act, 1999, so as to regulate the period during which certain information must be submitted by the Commissioner to the Director General of Labour; and to further regulate the court's jurisdiction in respect of offences; to amend the Taxation Laws Amendment Act, 2000, so as to remove the requirement that the Commissioner must approve a benefit fund; to amend the Taxation Laws Amendment Act, 2001, so as to delete an amendment proposed in that Act; and to provide for matters connected therewith.
B E IT ENACTED by the Parliament of the Republic of South Africa, as follows:- Amendment of section 5 of Act 45 of 1955, as amended by section 3 of Act 59 of 1957, section 4 of Act 65 of 1960, section 10 of Act 71 of 1961, section 10 of Act 77 of 1964, section 4 of Act 81 of 1965, section 2 of Act 56 of 1966, section 7 of Act 114 5 of 1977, section 7 of Act 81 of 1985, section 12 of Act 87 of 1988, section 2 of Act 136 of 1991, section 9 of Act 97 of 1993 and section 8 of Act 53 of 1999
1. Section 5 of the Estate Dutv Act, 195.5, is hereby amended- by the substitution in subsection (1) for the words preceding paragraph (a) of the following words: I O
"The value of any property [included in the estate of any person] for the purposes of the inclusion thereof in the estate of any person in terms of section 3 or the deduction thereof in terms of section 4. determined as at the date of death of that person. shall be--"; by the substitution in paragraph (fi of subsection (1) for the words preceding 15 subparagraph ( i ) of the following words: "in the case of a right of ownership in any movable or immovable property which is subject to a usufructuary or other like interest in favour f any person. the amount by which the fair market value of the full ownership of such property [determined, subject to the provisions of section eight, by some 20 impartial person appointed by the Commissioner] exceeds the value of such interest. determined-": by the substitution in paragraph (fjbis of subsection (1 ) for the words preceding subparagraph (i) of the following words: "in the case of shares in any company not quoted on any stock exchange. the 25 value of such shares i n the hands of the deceased at the date of his death [as determined, subject to the provisions of section eight, by some impartial person appointed by the Commissioner]. subject to the following pro\.i- sions, namely--": by the substitution in paragraph ( g ) of subsection (1) for the words preceding 30 the proviso of the following words: "in the case of any other property. the fair market value of such property as at the date of death of the deceased person [as determined, subject to the provisions of section eight, by sworn appraisement by some impartial person appointed bj- the Commissioner]:"; and 35 by the substitution in subsection (2) for the words preceding the second proviso of the follo\\.ing words and proviso:
equal to twelve per cent upon the fair market \.slue [determined, suljject to the provisions of section eight, by sworn appraisement by some impartial 5 person appointed by the Commissioner] o f the ful l ownersI1ip of the property u,hich is subject to any fiduciar!,. usufructuary or other like interest: Provided that where the.Commissioner is satisfied that the property which i s sub.ject to any such interest could not reasonably be expected to produce an annual yield equal l o 12 per cent on such value of the property. the I O Commissioner may f i x such sum [(whether or not such sum is f xed for the purposes of the inclusion of such right as property in the estate of the deceased in t e r m of section 3 or the allowance thereof as a deduction in terms of section 4)] as 1-epresenting the annual yield as may [seem to him to] be reasonable, and the sum so fixed shall for the purposes of paragraphs ( 6 ) 15 and (0 of subsection ( I ) be deemed 10 be the annual value of the right of enjoyment of such property:".
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Fixing of rates of normal tax in terms of Act 58 of 1962
2. The rates of normal tax to be levied in terms of section S(2) of the Income Tax Act. 1962. i n respect of- 20
( ( 1 ) the taxable income of any person other than a company for the year of
(11 ) the taxable income of any company for any year of assessment ending during
shall be as set out in Schedule I to this Act. 25
assessment ending on 28 February 2002 or 30 June 2002: and
the period of 12 months ending on 31 March 2002.
Amendment of section 1 of Act 58 of 1962, as amended by section 3 of Act 90 of 1962, section 1 of Act 6 of 1963. section 4 of Act 72 of 1963, section 4 of Act 90 of 1964, section 5 of Act 88 of 1965, section 5 of Act 55 of 1966, section 5 of Act 95 of 1967, section 5 of Act 76 of 1968, section 6 of Act 89 of 1969, section 6 of Act 52 of 1970, section 4 of Act S8 of 1971, section 4 of Act 90 of 1972, section 4 of Act 65 of 30 1973. section 4 ofAct 85 of 1971. section 4 ofAct 69 of 1975, section 4 ofAct 103 of 1976, section 4 of Act 113 of 1977, section 3 of Act 101 of 1978, section 3 of Act 104 of 1979, section 2 of Act 104 of 1980, section 2 of Act 96 of 1981, section 3 of Act 91 of 1982, section 2 of Act 94 of 1983, section 1 of Act 30 of' 1984, section 2 of Act 121 of 1984, section 2 of Act 96 of 1985, section 2 ofAct 65 of 1986, section 1 of Act 108 35 of 1986, section 2 of Act 85 of 1987, section 2 of Act 90 of 1988, section 1 of Act 99 of 1988, Government Notice No. R.780 of 14 April 1989, section 2 of Act 70 of 1989, section 2 ofAct 101 of 1990, section 2 ofAct 129 of1991, section 2 ofAct 141 of 1992, section 2 of Act 113 of 1993, section 2 of Act 21 of 1993, section 2 of Act 21 of 1995, section 2 of Act 36 of 1996, section 2 of Act 28 of 1997, section 19 of Act 30 of 1998, 40 section 10 of Act 53 of 1999, section 13 of Act 30 of 2000, section 2 of Act 59 of 2000 and section 5 of Act 5 of 2001
3. Section 1 of the Income Tax Act, 1962. is hereb). amended- ( ( 1 ) by tile substitution i n paragraph ( e ) of the definition of "gross income" for the
uol-ds precediny sitqxmgraph ( i ) of the following ords: 45 "any amount determincd in accordance ~ i t h the provisions of the Second Schedule (other than any amount included undel- pa l - apph (eA)): in respect of lump sun1 benefits receixcd b!, 01- accrued to such person from or i n consequence of his membership or past mernbership of--";
( / I ) by the substitution for paragraph ( a ) of the definition of "pension fund" of the 50 follcnving paragraph:
"(o) ri, an). superannuation. pension. provident or dependants' fund o r pension scheme established by law [or any such fund established for the benefit of employees of any local authority]: gr 55
( i i ) any superannuation. pension. provident or dependants‘ fund or pension scheme stablished for the benefit of the employees of any local authority; or
( i i i ) any fund contemplated in subparagraph (i i ) established on or before 14 iYo\rember 1000. which includes as members employees of any municipal entity created in accordance with the provisions of the Municipal Systems Act, 2000 (Act No. 32 of 2000), over which one or more local authorities exercise ownership control as contemplated by that Act, if such employees were mployees of a local authority immediately prior to becoming employees of such munici- pal entity;”.
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Amendment of section 3 of Act 58 of 1962, as amended by section 3 of Act 141 of 1992, section 3 of Act 21 of 1994, section 3 of Act 21 of 1995, section 20 ofAct 30 of 1998, section 3 of Act 59 of 2000 and section 6 of Act 5 of 2001 15
4. Section 3 of the Income Tax Act. 1962, is hereby amended by the substitution for subsection (4) of the following subsection: “(4) Any decision of the Commissioner under the definitions of ‘benefit fund’,
‘pension fund‘. ‘provident fund’, ‘retirement annuity fund’ and ‘spouse’ in section I , section 6, section 8(4)(bj. (c), (d) and ( e ) , section 9D, section 9F, section lO(l)(cH). 20 (cKj, (e) . (iA), ( j ) and (1zB1, section 11 ( e ) . cf), (g). (gA). ( j j . (1). ( t i . ( u ) and (w), section 12‘2, section 12E. section 12G, section 13, section 13, section 15, section 22(1), (3) and ( 5 ) , section 24(2). section 24A(6), section 24C, section 24D, section 241, section 25D, section 27, section 31, section 35(2) , section 38(4), section 57, paragraphs 6, 7, 9, 13, 13A, 14, 19 and 20 of the First Schedule, paragraph (0) of the definition of ‘formula A’ 25 in paragraph 1 and paragraph 4 of the Second Schedule, paragraphs 18, 19( l), 20,21,22, 24 and 27 of the Fourth Schedule, paragraphs 2, 3 . 6 . 9 and 11 of the Seventh Schedule and paragraphs 29(7), 31(2); 65(l)(d) and 66(1)(cj of the Eighth Schedule, shall be subject to objection and appeal.”.
Amendment of section 5 of Act 58 of 1962, as amended by section 2 of Act 6 of 1963, 30 section 5 of Act 90 of 1964, section 6 of Act 88 of 1965, section 7 of Act 55 of 1966, section 6 of Act 95 of 1967, section 6 of Act 76 of 1968, section 7 of Act 89 of 1969, section 7 of Act 52 of 1970, section 5 of Act 88 of 1971, section 5 of Act 90 of 1972, section 5 of Act 65 of 1973, section 5 of Act 103 of 1976, section 5 of Act 113 of 1977, section 3 of Act 104 of 1980, section 4 of Act 96 of 1981, section 4 of Act 91 of 1982, 35 section 3 of Act 94 of 1983, section 3 of Act 121 of 1984, section 3 of Act 65 of 1986, section 3 of Act 90 of 1988, section 3 of Act 129 of 1991, section 5 of Act 21 of 1994, section 4 of Act 21 of 1995 and section 7 of Act 5 of 2001
5. ( I ) Section 5 of the Income Tax Act, 1962. is hereby amended by the substitution for paragraph (g) of subsection (10) of the following paragraph: 40
“ ( g ) ‘R’ represents the greater of the amounts determined by applying the formula-
R = B + D - ( C + L + G ) i n respect of the said year and the preceding year of assessment, in which 45 formula- - ( i j the amounts represented by the symbols [‘A’] ‘B‘. *C‘. ‘D‘ and ‘ L shall
be determined i n accordance with the aforegoing provisions of this subsection as applicable in the said year or in the said preceding year. as the case may be;
( i i ) ‘F’ represents the amount of normal tax (as determined before the deduction of any rebate) calculated at the full rate of tax chargeable for the said year or the said preceding year in respect of a taxable income equal to the amount represented by the expression ‘B + D - (C + L + G)’ in the formula for that year or preceding year, as the case may be; and
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( i i i ) ’G‘ represents an amount of the taxable capital gain included i n the taxable income in terms of section 26A for the said year or the said preceding year. as the case may be:
Provided that[- (a)] where. as a result of the death or insolvency of the taxpayer. the period
assessed is less than 13 months, the symbol ‘R‘ shall be determined with reference to the said year only [and
(b) where the said preceding year ended on 28 February 1995, the symbols ‘D’ and ‘L‘ in the formula shall be disregarded]:”.
( 2 ) Subsection (1 ) shall come into operation on 1 October 2001 and shall apply in respect of years of assessment ending on or after that date.
Amendment of section 6 of Act 58 of 1962, as inserted by section 5 of Act 104 of 1980 and amended by section 5 of Act 96 of 1981, section 5 of Act 91 of 1982, section 4 of Act 94 of 1983, section 4 of Act 121 of 1984, section 3 of Act 96 of 1985, section 4 of Act 85 of 1987, section 4 of Act 90 of 1988, section 4 of Act 70 of 1989, section 3 of Act 101 of 1990, section 4 of Act 129 of 1991, section 4 of Act 141 of 1992, section 5 of Act 21 of 1995, section 4 of Act 36 of 1996, section 3 of Act 28 of 1997, section 22 of Act 30 of 1998. section 5 of Act 32 of 1999 and section 15 of Act 30 of 2000
6. Section 6 of the Income Tax Act. 1962, is hereby amended- (a) by the substitution in paragraph (a) of subsection (2) for the expression
( h ) by the substitution in paragraph (h) of subsection (2) for the expression “R3 800” of the expression “R4 140”; and
“R2 900” of the expression “R3 000”.
Amendment of section 8 of Act 58 of 1962, as amended by section 6 of Act 90 of 1962, section 6 of Act 90 of 1964, section 9 of Act 88 of 1965, section 10 of Act 55 of 1966, section 10 of Act 89 of 1969, section 6 of Act 90 of 1972, section 8 of Act 85 of 1974, section 7 of Act 69 of 1975, section 7 of Act 113 of 1977, section 8 of Act 94 of 1983, section 5 of Act 121 of 1984, section 4 of Act 96 of 1985, section 5 of Act 65 of 1986, section 6 of Act 85 of 1987, section 6 of Act 90 of 1988, section 5 of Act 101 of 1990, section 9 of Act 129 of 1991, section 6 of Act 141 of 1992, section 4 of Act 113 of 1993, section 6 of Act 21 of 1994, section 8 of Act 21 of 1995, section 6 of Act 36 of 1996. section 6 of Act 28 of 1997, section 24 ofAct 30 of 1998, section 14 of Act 53 of 1999, section 17 of Act 30 of 2000 and section 6 of Act 59 of 2000
7. Section 8 of the Income Tax Act. 1962, is hereby amended- (a ) by the substitution for subparagraph (i) of paragraph ( e ) of subsection (4) of
the following subparayraph: .‘(i) under the provisions of section 1 I(e) or section 12(1) or section 12( 1) as
applied by section 12(3) or the corresponding provisions of any previous Income Tax Act or section 12B or section 12C or section 12E or section 12G or section 14 or section 140is or section 27(2)(d). in respect of machinery or plant which was used by the taxpayer directly in a process of manufacture. or directly in any other process carried on by him on or after I S March 1961, which in the opinion of the Commissioner was of a similar nature; or”;
( h i by the addition of the u.ord “or” to subparagraph (iv) of paragraph ( e ) of
( c ) by the addition to paragraph ( e ) of subsection (4) of the following
” ( v ) in respect of any aircraft hangar. apron. runway or taxiway as
(d ) by the substitution for item (aa) of paragraph ( e ) of subsection (4) of the following item: “(aai that he has concluded or will within a period of one year (or such
longer period as the Commissioner in the circumstances of the case may allow) from the date of the event conclude a contract for the acquisition by him of further new or unused machinery, plant. ship,
subsection (4):
subparag-aph:
contemplated in section 12F.”:
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aircraft. pipeline. transmission line or cable. [or] railuray line, aircraft hangar. apron. runway or taxiway (hereinafter eferred to as the ‘further asset‘) to replace the aforesaid machinery, plant. ship, aircraft. pipeline. transmission line or cable. [or] railway line. aircraft hannar. apron. Iunway or taxiway: and“:
re) by the addition of the word “or” at the end of sub-item (D) of item (bb) of paragraph ( P ) of subsection (4):
( f i by the addition to item 0711) of paragraph ( e ) of subsection (4) of the following sub-item: “(E) in the case of an aircraft hangar, apron. runwa), or taxiway in carrying
on his sole business of airport operator as contemplated in section 12F.“;
i s ) by thesubstitution for paragraph ( k ) of subsection (4) of the following paragraph: “ f k l For the purposes of paragraph (a) , where during any year of assessment any person has- Q donated; or (IJ [distributed by way of a dividend] transferred in whatever manner or
any asset in respect of which a deduction or an allowance has been granted to such person in terms of any of the provisions referred to in that paragraph, such person shall be deemed to have recovered or recouped an amount equal to the market value of such asset as at he date of such donation or [distribution] transfer.”: and
(17) by the insertion after paragraph ( m ) of subsection (4) of the following paragraph:
“ ( 1 2 ) Where a taxpayer disposes of an industrial asset contemplated in section 12G before completion of the write off period of that asset for purposes of section 1 l (e ) , 12C or 13, as applicable. there shall be included in the taxpayer‘s income, all amounts allowed to be deducted in respect of that industrial asset under section 12G, whether in the current year or any previous year of assessment, which have been recovered or recouped during the current year of assessment, in addition to the inclusion of those amounts in terms of paragraph (a).“.
form to any shareholder of that company,
Amendment of section 9E of Act 58 of 1962, as inserted by section 20 of Act 30 of 2000 and amended by section 11 of Act 59 of 2000 and section 10 of Act 5 of 2001
8. (1) Section 9E of the Income Tax Act. 1962, is hereby amended by the substitution in paragraph (a) of the definition of “foreign dividend” in subsection (1) for the words preceding the proviso of the following words:
“any amount deemed to have been distributed as contemplated in section 64C(3)(a) , (b). (c) or ( d ) by any company which is a controlled foreign entity to such person or any resident who is a connected person in relation to such person to the extent that such company could have distributed a dividend to such person from profits which have not been subject to tax in the Republic, and none of the provisions contained in section 64C(4) (other than section 64C(4)jg) and ( 1 7 ) )
(2) Subsection ( 1 ) shall come into operation on the date of promulgation of this Act.
Amendment of section 10 of Act 58 of 1962, as amended by section 8 of Act 90 of 1962. section 7 of Act 72 of 1963, section 8 of Act 90 of 1964, section 10 of Act 88 of 1965, section 11 of Act 55 of 1966, section 10 of Act 95 of 1967, section 8 of Act 76 of 1968, section 13 of Act 89 of 1969, section 9 of Act 52 of 1970, section 9 of Act 88 of 1971, section 7 of Act 90 of 1972, section 7 of Act 65 of 1973, section 10 of Act 85 of 1974, section 8 of Act 69 of 1975, section 9 of Act 103 of 1976, section 8 of Act 113 of 1977, section 4 of.4ct 101 of 1978, section 7 ofAct 104 of 1979, section 7 ofAct 104 of 1980, section 8 of Act 96 of 1981, section 6 of Act 91 of 1982, section 9 of Act 94 of 1983, section 10 of Act 121 of 1984, section 6 of Act 96 of 1985, section 7 of Act 65 of 1986, section 3 of Act 108 of 1986, section 9 of Act 85 of 1987, section 7 of Act 90 of 1988, section 36 of Act 9 of 1989, section 7 ofAct 70 of 1989, section 10 OfAct 101
apply:”.
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of 1990, section 12 of Act 129 of 1991. section 10 of Act 141 of 1992. section 7 of Act 113 of 1993, section 4 ofAct 140 of 1993, section 9 ofAct 21 of 1994, section 10 ofAct 21 of 1995, section 8 of Act 36 of 1996, section 9 of Act 46 of 1996, section 10 of Act 28 of 1997, section 29 of Act 30 of 1998, section 18 of Act 53 of 1999, section 21 of Act 30 of 2000 and section 13 of Act 59 of 2000
9. Section 10 of the Income Tax Act. 1961. is hereby amended- ( a ) by the substitution for subparagraph (ii) of paragraph ($1 of subsection (I) of
“ ( i i ) pension received by or accrued to any resident from a source outside the Republic. which is not deemed to be from a source in the Republic in terms of section 9( l)(g), in consideration of past employment outside the Republic;“;
(12) by the substitution in item (ua) of subparagraph (xv) of paragraph (i) of subsection (I) for the expression “R4 000” of the expression “R5 000”: and
(c,) by the substitution in item (bb) of subparagraph (xv) of paragraph (i) of subsection ( 1 ) for the expression “R3 000” of the expression “R4 000”.
the following subparagraph:
Amendment of section 11 of Act 58 of 1962, as amended by section 9 of Act 90 of 1962, section 8 of Act 72 of 1963, section 9 of Act 90 of 1964, section 11 of Act 88 of 1965. section 12 of Act 55 of 1966, section 11 of Act 95 of 1967, section 9 of Act 76 of 1968, section 14 of Act 89 of 1969, section 10 of Act 52 of 1970, section 10 of Act 88 of 1971, section 8 of Act 90 of 1972, section 9 of Act 65 of 1973, section 12 of Act 85 of 1974, section 9 of Act 69 of 1975, section 9 of Act 113 of 1977, section 5 of Act 101 of 1978, section 8 of Act 104 of 1979, section 8 of Act 104 of 1980, section 9 of Act 96 of 1981, section 7 of Act 91 of 1982, section 10 of Act 94 of 1983, section 11 of Act 121 of 1984, section 46 of Act 97 of 1986, section 10 of Act 85 of 1987, section 8 of Act 90 of 1988, section 8 of Act 70 of 1989, section 11 of Act 101 of 1990, section 13 of Act 129 of 1991, section 11 of Act 141 of 1992, section 9 of Act 113 of 1993, section 5 of Act 140 of 1993, section 10 of Act 21 of 1994, section 12 of Act 21 of 1995, section 9 of Act 36 of 1996, section 12 of Act 28 of 1997, section 30 of Act 30 of 1998, section 20 of Act 53 of 1999, section 22 of Act 30 of 2000 and section 15 of Act 59 of 2000
10. ( 1 ) Section 1 1 of the Income Tax Act, 1962. is hereby amended- (a ) by the substitution for paragraph (bAj of the following paragraph:
“(DAj any interest (including related finance charges) which is not otherwise allowable as a deduction under this Act, which has been actually incurred by the taxpayer on any loan, advance or credit utilized by him for the acquisition. installation. erection or construction of any machinery, plant. [or] building. or any improvements to a buildingfi any pipeline. transmission line or cable or railway line as contem- plated in section 12D. or any aircraft hangar. apron, runway or taxiway as contemplated i n section 12F. to be used by him for the purposes of his trade. and u,hich has been so incurred in respect of a period prior to such machinery, plant, building. [or] improvements, pipeline, trans- mission line or cable. railway line. aircraft hangar. apron, runway or taxiway, being brought into use for the purposes of the taxpayer’s trade. such deduction to be allowed in the year of assessment during which such machinery. plant. building. [or] improvements. pipeline, transmission line or cable. railway line. aircraft hangar. apron. runway or taxiway is or are brought into use for the said purposes:”;
( b ) by the substitution for subparagraph (vii) of paragraph ( 0 ) of the following subparagraph: “[(rii)] (v;) any transmission line or cable or railway line referred to in
section 12D: 0 ’ “ : ( c ) by the addition to paragraph ( 0 ) of the following subparagraph:
“(\.ii) any aircraft hangar or any apron. runway or taxiway referred to in - - - .
section 1 ?E”:
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i d ) by the substitution for the words following subparagraph (vi) of paragraph (0)
"which ha1.e been scrapped by such taxpayer during the year of assessment. such allowance 10 be the excess of the original cost to such taxpayer of such building (or portion thereof), improvements (or portion thereof) to such building. shipbuilding structure. improvements to such shipbuilding structure, residential unit, permanent aork . road pavement, ancillary service, machinery. plant. implements. utensils, articles. transmission line or cable. [or] railway line. aircraft hanFar, apron. runway or taxiway over the total amou~lt arrived at by adding- (acr) all the allowances made in respect thereof under the provisions of
paragraph ( P ) of this section. or section 1 3 I ) , or section 12( 1 ) as applied by section 12(3), or section 12A(2). or section 12B, or section 12C. or section 12D. or section 12F, or section 13( 1). or section 13( 1 ) as applied by section 13[(4) or] (X) . or section 130i.s ( I ) . ( 7 ) or (3). or section 131e1-(2) or (3 ) : or section 14(l)(i-1) or (bj, or the corresponding provisions of any previous Income Tax Act. or section 1411i.r( ] ) (a) . (17) or (c) , or section 14F. or section 24G, or section 27(2)(0) [or ( 4 1 ; or
(011) in the case of any building (or portion thereof), improvements (or portion thereof) to such building, shipbuilding structure, improve- ments to such shipbuilding structure, residential unit, permanent work. road pavement. ancillary service. machinery, plant, imple- ments. utensils, articles. transmission line or cable. [or] railway line. aircraft hangar, apron. runway or taxiway which was during any previous financial year or years used by the taxpayer in the course of any trade carried on by such taxpayer, the receipts and accruals of which were not included in the income of such taxpayer during such year or years, all the allowances which could have been made in terms of the provisions referred to in item (aa) as if such receipts and accruals had been included in such taxpayer's income,
to any amount or the value of any advantage accruing to the taxpayer in respect of the sale or other disposal of such building. shipbuilding structure. improvements, residential unit, permanent work. road pave- ment, ancillary service. machinery, plant, implements, utensils. articles, transmission line or cable,'[or] railway line, aircraft han'gar. apron, runway or taxiway:";
( e ) by the substitution for paragraphs (i) and (ii) of the proviso to paragraph (0 ) of
but preceding the pro\ iso of the f o l l o u ~ i n ~ words:
the following paragraphs: "( i )
(ii)
no allowance shall be made i n the case of any such building (or portion thereof). improvements (or portion thereof) to such building, shipbuild- ing structure, improvements to such shipbuilding structure? residential unit. transmission line or cable, [or] railway line, aircraft hangar, apron. runway or taxiway which has or have been scrapped within a period of ten years from the date of erection or purchase, or in the case of any such residential unit in respect of which any amount has fallen for inclusion in the taxpayer's income under the provisions of section 13ter-(7)(a). whether in the current or in any preVious year of assessment; for the purposes of this paragraph the cost of any building (or portion thereof). improvements (or portion thereof) to any building, shipbuild- ing structure. improvements to anv shipbuilding structure. residential
~~
- . unit, transmission line 01- cable. [or] railway 1ine.aircrafr hanpar. apron. runway or taxiway shall be deemed to be that portion of the actual cost on which the allowance i n question n-as made;".
(? ) (a ) Subsection ( I ) ( a ) shall- (i) in so far as its adds the reference to any pipeline. transmission line or
cable or railway line contemplated in section 12D. be deemed to have come into operation on 33 February 2000; and
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( i i ) in so far as its adds the refcrcnce to any aircraft hangar. apron. runway or taxilvay contemplated in section 12E be deemed to have come into operation on 1 April 2001 :
(11 ) Subsection ( 1 ) ( h ) shall in so far as i t changes the paragraph number, be deemed to have come into operation on 23 Februar!. 3000. and insofar i t adds the word "or" shall be deemed to have come into operation on I April 2001.
(c) Subsection (I)(c/. (dj and ( c ) shall be deemed to have come into operation on 1 April 2001.
Amendment of section 12C of Act 58 of 1962, as inserted by section 14 of Act 101 of 1990 and amended by section 11 of Act 113 of' 1993, section 7 of Act 140 of 1993, section 11 of Act 21 of 1994, section 13 of Act 21 of 1995 and section 18 of Act 59 of 2000
11. (1) Section 12C of the Income Tax Act. 1962. is hereby amended by the
" ( a ) machinery or plant (other than machinery or plant in respect of which an allowance has been granted to the taxpayer under paragraph (b ) or section 12E) which was or is brought into use for the first time by the taxpayer for the purposes of his trade (other than mining or farming) and is used by him directly in a process of manufacture carried on by him or any other process carried on by him which in the opinion of the Commissioner is of a similar nature; or".
substitution for paragraph (a ) of subsection ( 1 ) of the following paragraph:
(2) Subsection ( I ) shall be deemed to have come into operation on 1 April 2001.
Insertion of sections 12E, 12F and 12G in Act 58 of 1962
12. The following sections are hereby inserted in the Income Tax Act. 1962, after section 12D:
"Deduction in respect of certain plant and machinery of small business corporations
12E. (1 ) Where any plant or machinery (hereinafter referred to as an asset) of a taxpayer which qualifies as a small business corporation- (a ) is brought into use for the first time by that taxpayer on or after 1 April
2001 for the purpose of that taxpayer's trade (other than mining or farmingj; and
(0) is used by that taxpayer directly in a process of manufacture (or any other process which in the opinion of the Commissioner is of a similar nature) carried on by that taxpayer.
a deduction equal to the cost of such asset shall be allowed in the year that such asset is so brought into use.
(2) For the purposes of this section the cost to a taxpayer of any asset shall be deemed to be the lesser of the actual cost to the taxpayer or the cost which a person would. if he had acquired the said asset under a cash transaction concluded at arm's length on the date on which the transaction for the acquisition of the said asset was in fact concluded, have incurred in respect of the direct cost of acquisition of the asset, including the direct cost of the installation or erection thereof or, where the asset has been acquired t o replace an asset which has been damaged 01- destroyed. such cost less any amount which has been recovered or recouped in respect of the damaged or destroyed asset and has been excluded from the taxpayer's income in terms of section 8 ( 3 ) ( c / , whether in the current or any previous year of assessment.
(3) Any expenditure (other than expenditure referred to in section 1 l(a)) incurred by a taxpayer during any year of assessment in moving an asset in respect of which ;f deduction was allowed or is allowable under this section from one location to another shall be allowed to be deducted from that taxpayer's income i n that year.
( 3 ) For the purposes of this section-
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_ _ \ L , . :2:.72 7 7 c,c ) \ ' E R Y \ I E \ T G -\zEm:. x .[[-I-> x l o l \ct zo. 1'). ?(IO1 KE\'T.SL.Ii L-\.\\'S .A\IE~D\IESTACT. 2001
( 0 1 'small business corporation' means an!; close col-porution 01- an! compan), registered as a pri\.ate company in terms of the Companies Act. 1973 (Act No. 61 of 1973). the entire shareholding of which is at all times during the year of assessment held by shareholders or members that are natural persons. where- ( i ) the gross income for the !'ear of assessment does not exceed
R1 million: Provided that where the close corporation or cornpan!' during the r e l e ~ m t )'eal- of assessment carries on any trade. for purposes of uhich any asset contemplated in this section is used. for a period which is less than 12 months. the amount of R1 million shall be reduced to an amount which bears to R1 million. the same ratio as the number of months (in the determination of which a part of a month shall be reckoned as a full month). during which that company or close corporation carried on that trade bears to 12 months:
(ii) none of the shareholders or members at any time during the year of assessment of the company or close corporation holds any shares or has any interest i n the equity of any other company as defined in section 1 (other than a company listed on a stock exchange as defined in the Stock Exchanges Control Act. 1985 (Act No. 1 of 1985). or any unit portfolio contemplated in paragraph ( e ) of the definition of 'company' in section 1) ;
(iii) not more than 20 per cent of the zross income of the company or close corporation consists collectively of investment income and income from the rendering of a personal service: and
( i v ) such company is not an employment company;
( i ) which is a labour broker as defined in the Fourth Schedule to the Act. other than a labour broker in respect of which a certificate of exemption has been issued in terms of paragraph 2 ( 5 ) of the said Schedule: or
(ii) which is a personal service company as defined in the Fourth Schedule:
(b ) 'employment company' means any company-
(L.) 'in\restment income' means- ( i ) any income in the form of dividends. royalties. rental. annuities
or income of a similar nature: (ii) any interest as contemplated in section 24J. any amount
contemplated i n section 24K and any other income which. by the laws of the Republic administered by the Commissioner. is subject to the same treatment as income from money lent: and
(iii) any proceeds derived from investment or trading in financial instruments (including futures. options and other deriL7atives). marketable securities or immovable property;
( d l 'personal service' means any service in the field of accounting. actuarial science. architecture. auctioneering; auditing. broadcasting. bl-oking. commercial arts. consulting, draftsmanship. education. engi- neering. entertainment. health. information technology. journalism. law. managemcnt. performing arts. real estate. research. secretarial scrvices. sport. surveying. trmslation. valuation or veterinary science. which is pel-formed personally by any person who holds an interest i n the cornpan!' or close corporation.
Deduction in respect of certain aircraft hangars, aprons. runways and tasiways
12F. ( 1 ) For the purposes of this section-
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- . ’1 ’:5.;7 G@\’EKSM€ENT GAZETTE. 27 JCLY 2001
,Art No. J Y . 2001 RE1’LSC.E L.A\?’S A\IENDhlENT .ACT. 7001
‘affected asset‘ means any new and unused aircraft hangar, apron, runwa). or taxiway on any designated airport. contracted for on or aftel- the effective date. and the construction, erection 01- installation of which commenced on or after such date, and includes any earthworks or supporting structures forming part of such hangar, apron, runway or taxiway: ‘designated airport’ means an airport approved by the Minister, in consultation with the Minister of Transport. as a designated airport by notice in the Gazette for purposes of this section: and ‘effective date’ means 1 April 2001.
(a) is brought into use for the first time by such taxpayer on or after the
(b) is used directly by such taxpayer in carrying on his sole business as
there shall be allowed to be deducted an allowance in respect of the cost actually incurred by the taxpayer in respect of the acquisition (including the construction. erection or installation) of such asset to the extent that such affected asset is used in the production of the taxpayer’s income.
(3) The allowance contemplated in subsection (2) in respect of an affected asset shall, in respect of any one year of assessment, be five per cent of the cost incurred in respect of that asset.
(4) For the purposes of this section the cost to a taxpayer of any asset shall be deemed to be the lesser of the actual cost to the taxpayer or the cost which a person would, if he had acquired the said asset under a cash transaction concluded at arm’s length on the date on which the transaction for the acquisition of the said asset was in fact concluded, have incurred in respect of the direct cost of acquisition of the asset, including the direct os1 of the installation or erection thereof or. where the asset has been acquired to replace an asset which has been damaged or destroyed, such cost less any amount which has been recovered or recouped in respect of the damaged 01 destroyed asset and has been excluded from the taxpayer’s income in term: of section 8(4)(e), whether in the current or any previous year of assessment.
(5) No deduction shall be allowed under this section in respect of an) affected asset which has been disposed of by the taxpayer during an) previous year of assessment.
(6) The deductions which may be allowed or deemed to have beer allowed in terms of this section and any other provision of this Act ir respect of the cost of any affected asset shall not in the aggregate exceed the amount of such cost.
Additional industrial investment allowance in respect of industria assets used for qualifying strategic industrial projects
(2) In respect of any affected asset which-
effective date; and
airport operator,
12G. ( 1 ) For the purposes of this section- ‘cost of an industrial asset’ means the direct expenditure actually incurrec by a company to acquire, erect. construct or install an industrial asset excluding- (a ) so much of the expenditure-
(i) as exceeds the fair market value of that asset: or (ii) paid to any connected person in relation to that company, a!
exceeds the lesser of- ( a a ) the fair market value of that asset; or (bb) the costs incurred by that connected person (or any othe
connected person in relation to the company) in respect o that asset;
(0) any borrowing or finance costs, including interest as contemplated il section 245 or raising fees; and
( c ) any amount of the expenditure which is or was directly or indirect]! received in the form of any subsidy, rebate, refund or other assistancc
1
1 ‘
1
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‘ .
I
I
‘
I
1
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5
0
5
!0
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10
35
$0
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1P \o ‘Yi: ~iO\’EKNZ1ENT GAZETTE. 27 .IL:LJ. 2 0 0 ;
A c t K(I. 19. 2001 RE\ EYCE L 4 \ \ S .A21ENDhlEKTACT. W l l
granted by the national sphere of government pursuant to any investment incenrive;
‘industrial asset’ means- ( N ) any plant or machinery acquired or contracted for by a company after
the date of appro\,al in terms of subsection (5), which- ( i ) has not been used before by any person: ( i i ) will be brought into use for the first time by that company within
three years from the date of approval in terms of subsection (5); ( i i i ) will be used by that company in the Republic for purposes of
carrying on an industrial project of that company; and (iv) will qualify for a deduction in terms of section 1 ] ( e ) or
12C( 1 )(a): or (17) any building or any improvements effected to a building situated in the
Republic. acquired or contracted for by a company after the date of approval in terms of subsection ( 5 ) . where such building or such improvements- ( i ) have not been used before by any person; (ii) will be brought into use by that company within three years from
the date of approval in terms of subsection ( 5 ) ; ( i i i ) will be wholly or mainly used for the purposes of carrying on
therein any process requiring plant and machinery contemplated in paragraph (a); and
(iv) will qualify for a deduction in terms of section 13(l)(b), (dA) or (f), other than where the company would qualify for such deduction as a lessor;
‘industrial project’ means- (a ) any manufacturing of products, goods, articles, or other things
(excluding any tobacco and tobacco related products) within the Republic that is classified under ‘Major Division 3: Manufacturing‘ in the most recent Standard Industrial Classification issued by Statistics South Africa;
(0) any computer and computer related activities; or (c) any research and development activities.
(2) In addition to any other deductions allowable in terms of this Act, a company may. subject to subsection (3 ) ; deduct an amount (hereinafter referred to as an additional industrial investment allowance) equal to- (a) 100 per cent of the cost of any industrial asset used in a qualifying
strategic industrial project determined to have preferred status; and (0) 50 per cent of the cost of any industrial asset used in any other
qualifying strategic industrial project. in the year of assessment during which that asset is first brought into use by the company as owner thereof for such pro-ject carried on by that company.
(3) The additional industrial investment allowance contemplated in subsection (2)- ( a ) will be allowed only against income received by or accrued to the
company from carrying on any industrial project: Provided that the amount whereby such allowance xceeds uch income, shall be carried forward to the immediately succeeding year of assessment and be deemed to be a deduction or allowance which may be allowed in terms of subsection (2) in that succeeding year: and
(hi may not exceed the lesser of the amount reflected in the application for approval as being the cost of the industrial assets to be acquired by the company. as contemplated in subsection (4)(a). or- ( i ) R600 million in the case of any qualifying strategic industrial
project \\,ith preferred status; or
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0
2s \ ( I :x:: GO\ tR' 2.i.i: GO\'ER\:\lENT GAZETTE. 2- IUL) 2001
A c t S o . 19. 2001 R E \ Z S U E LA\VS AMEND\IENT .ACT. 1001
( i ) purchased as claimed on the application for a diesel refund:
( i i ) used in accordance with the provisions of this section and
( f ) the pro\.isions of the Value-Added Tax .4ct. 1991 (Act No. 89 of 1991). shall rnutatis nzurmdis apply in respect of the payment of interest on any amount of fuel levy or Road Accident Fund levy which is being recovered as i t is in excess of the amount due or is not duly refundable.
( 1 B) (a ) The Commissioner shall, at the end of each calendar month, furnish an audited statement. as may be agreed upon between the Commissioner and the Chief Executive Officer of the Road Accident Fund referred to in section 12 of the Road Accident Fund Act, 1996 (Act No. 56 of 1996). to the said Chief Executive Officer, reflecting the quantity of diesel in litres and the amount of the Road Accident Fund levy refunded thereon during such month
(h ) The Chief Executive Officer of the Road Accident Fund shall repay to the Commissioner the amount of the Road Accident Fund levy refunded by the Commissioner not later than the last working day of each calendar month immediately succeeding the calendar month covered by the statement furnished by the Commissioner.
( c ) Any amount so repaid by the Road Accident Fund shall be paid into the National Revenue Fund as if it were a recovery of fuel levy refunded under this section.
(d) For the purposes of this Act, any refund of Road Accident Fund levy by the Commissioner to any applicant shall be deemed to be a refund of duty and any amount paid which was not duly payable or in excess of the amount due to the applicant shall be recoverable as provided in section 76A and shall. when recovered, be repaid to the Road Accident Fund by the Commissioner each calendar month.
( e ) The Commissioner may enter into a written agreement with the Chief Executive Officer of the Road Accident Fund to regulate any incidental matter which it may be necessary or expedient to regulate in order to achieve or promote the objects of this subsection.
( lC)(a) Notwithstanding the provision of subsection (lA), the Commissioner may investigate any application for a refund of such levies on distillate fuel to establish whether the fuel has been-
(i) duly entered or is deemed to have been duly entered in terms of
( i i ) purchased in the quantities stated in such return; ( i i i ) delivered to the premises of the user and is being stored and used
or has been used in accordance with the purpose declared on the application for registration and the said items of Schedule NO. 5 or 6.
( b ) For the purposes of this section and the said items of Schedule No.
( i ) 'user' shall mean, according to the context and subject to any note i n the said Schedule No. 5 or 6, the person registered for a diesel refund as contemplated in subsection (1A) and as a user as provided in subsection (3A):
( i i ) 'distillate fuel' includes diesel and 'diesel' includes distillate fuel. (c ' ) ( i ) The refunds specified i n the said items of Schedule No. 5 or 6
shall apply to fuel purchased on or after the date the amendment contemplared in section 75( 15) comes into operation.
( i i ) Any such fuel purchased shall be deemed to have been used in the order of the dates of such purchases.
( i i i ) The extent of the refund referred to in subparagraph ( i ) shall be the rate of such refund specified i n such item of Schedule No. 5 or 6 in operation on the date of issue of the invoice concerned, referred to in subsection (4,4)1c).
( I V ) I f the extent of such refund is amended and for any reason any liability- to repay any refund of such le\;ies in respect of any quantity of
and
the said items of Schedule No. 5 or 6:
this Act:
5 or 6-
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si1 2 3 : : ( i o \ t:)i\\ltSl C;A%l:'TTt.. 2- . i L ' l ~ \ ' 2001
.\cr Yo. 19. 2001 RE\ F,YL'E LA\\ S AZ1ENDbIFYT ACT. 2001
fuel Lvhich the user mal' incur i n respect ofthe usc of such fuel cannot he assessed oI thc amount of the leliea refundable to such user in terms of any item of Schedule No. 5 or 6 cannot be calculated on any quantity of such fuel purchased by such usel- before such amendment. the quantity of such fuel in respect of any refund which the user is liable to repay. or the quantity used in accordance with any such item for the calculation of the amount refundable to such user. shall be determined by the Commis- sioner according to the information at his disposal.
(d)(i) Any user who has been granted such a provisional refund shall. in relation to the purchase and use by him of the fuel concerned, furnish the Commissioner at such times as may be prescribed in the notes to item 640.03. with adeclaration i n such form and supported by such documents as may be prescribed in such notes.
(ii) Any user u,ho fails to comply \vith the provisions of paragraph (d)(i) shall be deemed to have used such fuel for a purpose or use other than the purpose or use stated in the said items of Schedule No. 5 or 6 and the amount of such refund shall be deemed to be a refund not duly payable to such user and shall be recoverable in terms of section 76.4.
(p)(i) If the amount of the provisional refund paid to the user concerned \vas not duly refundable 01- exceeds the amount refundable in terms of the said items of Schedule No. 5 or 6, any such amount or the excess shall be paid by that user upon demand by the Commissioner.
(ii) If that user fails to pay the amount demanded in terms of subparagraph (i). such amount shall be recoverable in terms of section 76A.":
(d ) by the substitution for subsection (4A) of the following subsection: "(4A)(a) Any person who registers for a diesel refund as contem-
plated in subsection (1A) shall in addition register as a user under the provisions of this Act. (0) Any return for refund of such levies shall be in such form and shall
declare such particulars and shall be for such quantities and for such periods and shall be submitted within such period as may be determined by the Commissioner.
(c) Any seller of such fuel shall furnish such user with an original invoice reflecting the particulars. and shall keep a copy of such invoice for such time. as may be prescribed in the notes to the item 640.03.
(d) Any user shall complete and keep such books, accounts and documents and furnish to the Commissioner at such times uch particulars of the purchase, use or storage of such fuel or any other particulars as may be prescribed in the notes to item 640.03.
(c)(i) Notwithstanding anything to the contrary in this Act contained. an!; user of distillate fuel who has been granted such refund and who fails t 0-
(aa) keep an). such invoice; ( h b ) complete and keep such books. accounts and documents; or (cc) forthm.ith furnish any officer at such officer's request with such
invoice and the books. accounts and documents required to be completed and kept.
shall. i n addition to any other liability incurred i n telms of this Act i n respect of the fuel to M-hich such failure relates. be liable. as the Commissioner may determine. for payment of an amount not exceeding the h i e s refunded on suc11 fuel. unless i t is shown by the user u ithin 30 days of the date of any demand for payment of such amount in terms of this section that the fuel has been used in accordance a i th the provisions of the said items of Schedule No. 5 or 6.
( i i ) Any amount for which any person is liable in terms of this section shall be payable upon demand by the Commissioner.
( f l The Commissioner may, subject to revira. b\, the High Cour-
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$ 2 \o 22532 G(O\ EI;UZIE\l . ~ i . \ 7 T ' r Y L . 2- 1L.L.J 2 i ~ i l l
.Act k t . 1 9 . 200 I l
( i i ) cap:ibie of writication: (iii) linked or attached to electronically transmitted data in such a
manner so as to authenticate the attachment of the signature to particular data and the integnty of the data transmitted so that if the data is changed the electronic signature is invalidated;
(iv) under the sole control of the registered user: and (v) conforms in all respects to the requirements prescribed by the
Cornmissioner bj, rule and contained i n the user agreement. ( 1 I ) Where in any proceedings or prosecution under this Act or in any
dispute in which the State. the Minister. the Commissioner or any officer is a party, the question arises whether an electronic signature affixed to any electronic communication to the Commissioner was used in such commu- nication with or without the consent and authority of the registered user, i t shall. in the absence of proof to the contrary, for purposes of this Act be assumed that such signature was. subject to the provisions of subsection (4), so used with the consent and authority of the registered user.
(12)(a) Notwithstanding an),thing to the contrary in this Act or in any other law contained. whenever in any proceedings or prosecution under this Act or in any dispute in which the State, the Minister. the Commissioner or any officer is a party. it is necessary to prove the authenticity, the veracity. the origin. the contents, an electronic signature or any other aspect of any electronic communication transmitted to and received by the Commis- sioner under this ection, the provisions and conditions of the user agreement referred to in subsection (4) shall establish the basis upon which any court of competent jurisdiction shall determine such issues.
(b) Notwithstanding anything to the contrary contained in any other law, nothing in the application of the rules of evidence shall be applied so as to deny the admissibility of any electronic communication under this section for purposes of this Act in evidence-
(i) on the sole grounds that it is an electronic data message; or (ii) if it is the best evidence that he person adducing it could
reasonably be expected to obtain, on the grounds that it is not in original form.
(c)(i) Information in the form of a data message shall be given due
(ii) In assessing the evidential weight of a data message a court shall have
(aa) the reliability. of the manner in which the data message
(hh) the reliability of the manner in which the integrity of the
(ccJ the manner in which its originator was identified: (dd) whether these functions were in compliance with the user
( e e ) the requirements of this section, and any other relevant
( I 3) Whenever. because a computer system is inoperative, a registered user or the Commissioner cannot transmit or receive an electronic transmission required for purposes of this ,4ct. the registered user and the Commissioner shall communicate with each other by paper document as 1 prescribed by rule.
(14) The Commissioner may at any time require from any registered user who transmitted any electronic communication under this section for purposes of this Act the production of any original document required to be produced under any of the pro\,isions of the Act.
(IS)(a) Any person. other than the registered user of an electronic signature. using such signature i n any electronic communication to the Commissjoner for any purpose under this Act without the consent and authority of such registered user. shall be guilty of an offence and liable on
evidential weight.
regard to-
was generated. stored and communicated;
information was maintained:
agreement; and
factor.
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60
con\iction for even time such signature \vas so used to a fine not exceeding RlOO 000 or treble the \ d u e of the p o d s i n respect of which the offence \\‘as committed. whichever is the greater. or to imprisonment for a period not exceeding 10 years or to both such fine and such imprisonment, and the goods i n respect o f u.hich such offence was committed shall be liable t o forfeiture under this Act.
(11) Any person who- ( i ) makes a false electronic record or a part of an electronic record or
u.ho makes a false entry in any electronic record or who makes a false statement in such electronic record: or
(aa) makes. signs or executes an electronic record; (00) makes or transmits any electronic record or part of any
(cc) affixes any digital signature on any electronic record; or ( i i i ) without lawful authority dishonestly and fraudulently alters any
electronic record in any material part thereof after it had been made. executed or affixed ni th digital signature: or
(iv) dishonestly or fraudulently causes any other person to sign, execute or alter an electronic record or to affix a digital signature on any electronic record,
shall be guilty of an offence and liable on conviction for every such offence to a fine not exceeding RlOO 000 or treble the value of the goods in respect of which the offence was committed, whichever is the greater, or to imprisonment for a period not exceeding 10 years or to both such fine and such imprisonment. and the goods in respect of which such offence was committed shall be liable to forfeiture under this Act.
(a ) to delegate, subject to section 3(2) . any power which may be exercised or assign any of the duties which shall be performed in terms of this Act to any officer or any other person:
(0) regarding all matters which are required or permitted in terms of this section to be prescribed by rule; and
(c) in respect of any other matter which the Commissioner may reasonably consider to be necessary and useful to achieve the efficient and effective administration of the provisions of this section.”.
(2) Subsection ( 1 ) shall come into operation on a date fixed by the President by
( i i ) dishonestly or fraudulently-
electronic record;
(1 6) The Commissioner may make rules-
proclamation in the Ga;ette.
Amendment of Schedule No. 1 to Act 91 of 1964, as amended by section 19 of Act 95 of 1965, section 15 of Act 57 of 1966, section 2 of Act 96 of 1967, section 22 of Act 85 of 1968, section 37 of Act 105 of 1969, section 9 of Act 98 of 1970, section 2 of Act 89 of 1971, section 12 of Act 103 of 1972, section 6 of Act 68 of 1973, section 3 of Act 64 of 1974, section 13 ofAct 71 of 1975, section 13 ofAct 105 of 1976, section 38 of Act 112 of 1977, section 3 ofAct 114 of 1981, section 27 of Act 86 of 1982, section 10
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40
of Act 89 of 1984, section 14 of Act 101 of 1985, section 11 of Act 69 of 1988, section 45 19 ofAct 68 of 1989, section 40 ofAct 59 of 1990, section 3 ofAct 111 of 1991, section 15 of Act 105 of 1992. section 13 of Act 98 of 1993, section 12 of Act 19 of 1994, section 74 ot‘Act 45 of 1995, section 8 of Act 44 of 1996, section 15 of Act 27 of 1997, section 75 of Act 30 of 1998, section 7 of Act 32 of 1999 and section 64 of Act 30 of 2000 50
52. ( 1 ) Schedule No. 1 to the Customs and Excise Act, 1964. is hereby amended as set
(2 j Subject to the provisions of section 58( 1) of the Customs and Excise Act. 1961. out i n Schedule 2 to this Act.
subsection ( I ) shall he deemed to have come into operation on 21 February 2001.
~ ~~~~~ ~
I ’ ‘\I :‘:.:: < I < > \ ! X \ \ l L V C;;;%i TTi: 27 .iL i.\ 2OOi .\ci \(#. 19. 2001 I < E \ E Y ’ E lLA\\’S AI1EYD\lEXT .ACT. 2 0 0 1
Continuation of certain amendments of Schedules Nos. 1 to 6 and 1 0 to Act 91 of 1964
53. ( I ) Every amendment or withdra\val of 01- insertion in Schedules Nos. 1 to 6. inclusi\re. and 10 IO the Customs and Excise Act. 1964. made under section 48. 49. 56 or 75( 15) of that Act during the calendar year ending on 31 December 2000 shall not lapse by virtue of the provisions of section 48(6). 49. 56(3 ) or 75(16) of that .4ct.
( 2 ) The amendments of Part 2 and Part 5 of Schedule No. 1 of the Customs and Excise .4ct. 1964. made under section 4s of that Act by Government Notice R184 and R185 of 21 February 2001 in respect of the said Part 2 and Government Notice R332 of 6 April 2001 in respect of the said Part 5 shall nor lapse by virtue of the provisions of section 48(6) of that Act.
Amendment of section 1 of Act 77 of 1968, as amended by section 16 of Act 103 of 1969, section 5 of Act 66 of 1973, section 7 of Act 88 of 1974, section 19 of Act 106 of 1980, section 3 of Act 118 of 1984, section 17 of Act 87 of 1988, section 36 of Act 9 of 1989, section 3 of Act 69 of 1989, section 5 of Act 136 of 1991, section 4 of Act 20 of 1994, section 77 of Act 30 of 1998, section 74 of Act 53 of 1999 and section 40 of Act 5 of 2001
54. Section 1 of the Stamp Duties Act, 1968, is hereby amended- (a ) by the deletion of the definition of “bill of exchange”: (b) by the deletion of the definition of “cheque”: and ( c ) by the deletion of the definition of “promissory note”.
Amendment of section 7 of Act 77 of 1968, as amended by section 18 of Act 103 of 1969, section 10 of Act 89 of 1972, section 8 of Act 66 of 1973, section 3 of Act 70 of 1975, section 5 of Act 87 of 1982, section 7 of Act 118 of 1984 and section 5 of Act 69 of 1989
55. ( I ) Section 7 of the Stamp Duties Act, 1968, is hereby amended by the deletion of paragraph ( c ) of subsection ( I ) .
( 2 ) Subsection (1 ),shall be deemed to have come into operation on 1 April 2001 and shall apply in respect of any bill of exchange or promissory note executed on or after that date.
Amendment of section 10 of Act 77 of 1968, as amended by section 5 of Act 95 of 1978
56. (1) Section 10 of the Stamp Duties Act. 1968. is hereby amended by the deletion
( 2 ) Subsection (1) shall be deemed to have come into operation on 1 April 2001 and of paragraph (c) of subsection ( 1 ) .
shall apply in respect of an!; promissory note executed on or after that date.
Repeal of section 16 of Act 77 of 1968
57. (1) Section 16 of the Stamp Duties Act. 1968, is hereby repealed. (2) Subsection (1) shall be deemed to have come into operation on 1 April 2001 and
dlalf apply in respect of any bill of exchange or promissory note executed on or after that ddk .
Repeal of section 17 of Act 77 of 1968, as amended by section 22 of Act 87 of 1988
58 . ( 1 ) Section 17 of the Stamp Duties Act, 1968, is hereby repealed. ( 2 ) Subsection ( 1 ) shall be deemed to ha1.e come into operation on 1 April 2001 and
shall apply in respect of any bill of exchange executed on or after that date.
Repeal of section 18 of .4ct 77 of 1968, as amended by section 23 of Act 87 of 1988
59. (1) Section 18 of the Stamp Duties Act, 1968. is hereby repealed. ( 2 ) Subsectiun (1 ) shall be deemed to have come into operation on 1 April 2001 and
shall apply in respect of any promissory note executed on or after that date.
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60. ( 1 ) Section 25 of the Stamp Duties .4ct. 1968. is her-eb), repealed. (2) Subsection ( 1 ) shall be deemed to ha\,e come i n t o operation on 1 April 2001 and
shall apply in respect of any document of security or pledge, or any act of suretyship. indemnity or guarantee executed on or after that date.
Repeal of Item 5 of Schedule 1 to Act 77 of 1968, as amended by section 24 of Act 103 of 1969, section 16 ofAct 88 of 1974, section 14 of Act 114 of 1977, section 9 of Act 92 of 1983 and section 9 of Act 118 of 1983
61. ( 1 ) ltem 5 of Schedule 1 to the Stamp Duties Act. 1968. is hereby repealed. ( 2 ) Subsection ( 1 ) shall be deemed to ha\.e come into operation on 1 April 2001 and
shall apply in respect of any bill of exchange or promissory note executed on or after that date.
Amendment of Item 6 of Schedule 1 to Act 77 of 1968, as inserted by section 10 of Act 118 of 1984 and amended by section 4 of Act 71 of 1986, section 32 of Act 87 of 1988, section 7 of Act 136 of 1992, section 15 of Act 37 of 1996 and section 78 of Act 53 of 1999
62. Item 6 of Schedule 1 to the Stamp Duties Act. 1968. is hereby amended by the substitution in paragraph (c) for the words following subparagraph (ii) of the following n.ords:
"into which the depositor may deposit money and from which the institution or the Postbank where the account is held. may make a payment to any other person or electronically transfer an amount to any other account of such depositor or to the account of any other person.".
Repeal of Item 11 of Schedule 1 to Act 77 of 1968, as amended by section 12 of Act 89 of 1972, section 16 of Act 114 of 1977, section 7 of Act 102 of 1979, section 10 of Act 92 of 1983 and section 11 of Act 32 of 1999
63. (1 ) Item 1 1 of Schedule 1 to the Stamp Duties Act. 1968, is hereby repealed. ( 2 ) Subsection ( 1 ) shall be deemed to have come into operation on 1 April 2001 and
shall apply in respect of any customs and excise document executed on or after that date.
Repeal of Item 20 of Schedule 1 to Act 77 of 1968, as amended by section 27 of Act 103 of 1969, section 19 of Act 66 of 1973, section 24 of Act 88 of 1974, section 17 of Act 92 of 1983, section 35 of Act 87 of 1988, section 36 of Act 9 of 1989 and section 74 of Act 30 of 2000
64. ( 1 ) Item 20 of Schedule 1 to the Stamp Duties Act, 1968. is hereby repealed. ( 3 ) Subsection ( 1 ) shall be deemed to have come into operation on 1 April 2001 and
shall apply in respect of any document of security or pledge, or any act of suretyship, indemnity or guarantee executed on or after that date.
Amendment of section 1 of Act 89 of 1991, as amended by section 21 of Act 136 of 1991, paragraph 1 of Government Notice 269s of 8 November 1991, section 12 of Act I36 of 1992, section 22 of Act 97 of 1993, section 9 of Act 20 of 1994, section 18 of.4ct 37 Of 1993. section 9 of Act 20 of 1994. section 18 of Act 37 of 1996, section 23 of .4ct 27 of 1997, section 81 of Act 53 of 1999, section 76 of Act 30 of 2000 and section 64 of Act 59 of 2000
65. ( 1 ) Section 1 of the Value-Added Tax Act. 1991, is hereby amended- (cr) by the insertion after the definition of "conmenccment date" of the following
definition: 'commercial accommodation' means-
( (1 ) accommodation. including the supply of domestic goods and sensices. in any house. flat, apartment. room. hotel, motel. inn. guesthouse. boarding house. residential establishment. holiday accommodation unit, chalet, tent. caravan. camping site. houseboat,
Repeal of section 25 of Act 77 of 1968
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or s im~lar establishmcnt. u.hich is rcplarly or systematically let and u41ere the total u n u a l receipts from the letting thereof is reasonably expected to exceed RJS 000 per annum:
(b ) accommodation in a home for the aged. children, physically or mentally handicapped persons: and
( c ) a hospice:“: (0) by the deletion of the definition of “commerclal rental establishment”: IC) by the substitution for the definition of “domestic goods and ser\,ices” of the
* ‘ ‘domestic goods and services’ means the provision to a natural person of the right to occupy for residential purposes the whole or part of the accommodation pro\,ided i n any [commercial rental establishment] enterprise supplying commercial accommodation, including, where it is provided as part of the right of occupation. the provision of- (a ) cleaning and maintenance: ( B ) electricity, gas. air conditioning or heating: ( c ) a telephone. television set. radio or other similar article: (d) furniture and other fittings:
folloa~ing definition:
( e ) meals:”; (d) by the substitution for the definition of “dwelling“ of the following definition:
‘‘ ‘dwelling‘ means any building, premises, structure or any other place. or any part thereof, used predominantly as a place of residence or abode of any natural person or which is intended for use as a place of residence or abode of any natural person. together with any appurtenances belonging thereto and enjoyed therewith, but does not include [a commercial rental establishment] the supply of domestic goods and services in an enterprise supplying commercial accommodation;”; and
( e ) by the deletion of the definition of “residential rental establishment”. (2) Subsection (1) shall come into operation on 1 October 2001.
Amendment of section 6 of Act 89 of 1991, as amended by section 20 of Act 37 of 1996. section 34 of Act 34 of 1997 and section 88 of Act 30 of 1998
66. Section 6 of the Value-Added Tax Act, 1991, is hereby amended- (a ) by the deletion of paragraph ( d ) of subsection ( 2 ) : and (b) by the insertion in subsection (2) of the following paragraph:
“ ( e ) publishiny and making known the name and registration number of any vendor.”.
.4mendment of section 8 of Act 89 of 1991, as amended by section 24 of Act 136 of 1991, section 15 of Act 136 of 1992. section 24 ofAct 97 of 1993, section 11 ofAct 20 of 1994, section 20 of Act 46 of 1996, section 25 of Act 27 of 1997 and section 83 of Act 53 of 1999.
67. Section S of the Value-Added Tax Act, 1991. is hereby amended- lo) by the deletion of the word “and” at the end of paragraph (a) of subsection
(11) by the addition of the word “and“ at the end of paragraph ( 0 ) of subsection
(c) by the addition to subsection (6) of the following paragraph:
(6):
( 6 ) , and
“(c) the transfer of all its assets and liabilities by an administrative unit of a local authorit), that is separately registered under subsection ( 2 ) of section 50, to the vendor- intended in subsection ( 1 ) of that section. shall be deemcd not to be a supply.“.
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so
.Amendment of section 10 of Act 89 of 1991. as amendcd by section 26 of Act 136 of 1991, section 16 of Act 136 of 1992. section 26 of Act 97 of1993. section 12 of Act 20 of 1994, section 22 of Act 46 of 1996, section 21 of Act 37 of 1996, section 27 of .Act 27 of 1997 and section 84 of Act 53 of 1999
68. ( 1 ) Section 10 of the Value-.4tlded Tax Act . 199 1. is hereby amended- 5 [ o ) by the substitution for paragraph ( ( 1 ) of subsection ( 1 0) of the follo\J,ing
“ [ (a ) ] where domestic goods and senices are supplied [by a c o n m e r - cia1 rental establishment] at an all-inclusive charge in any enterprise supplying commel-cia1 accommodation for [a] I O unbroken pel-iod exceeding [15] 2 days. the value of the [portion of the] supply [as relates to that part ofthe period of the suppl!- as exceeds 45 days] shall [(unless the provisions of paragraph (b) are applicable)] be deemed to be 60 per cent of the \.slue of the supply [for the said part, as determined before IS applying this paragraph].”: and
( 1 7 ) by the deletion of subparagraphs ( i ~ ) and ( e ) of subsection (IO).
paragraph:
( 2 ) Subsection ( I ) shall come into operation on 1 October 2001.
Amendment of section 12 of Act 89 of 1991, as amended by section 28 of Act 136 of 1991, section 18 of Act 136 of 1992, section 28 of Act 97 of 1993, section 14 of Act 20 20 of 1994 and section 22 of Act 37 of 1996
69. (1 ) Section 12 of the Value-Added Tax Act. 1991. is hereby amended by the addition to paragraph ( c ) of the following subparagraphs: “(iii) where an employer operates a hostel or boarding establishment mainly for the
benefit of the employees otherwise than for the purpose of making profit: or
than for the purpose of making profit.”.
25 (iv) where a local authority operates a hostel or boarding establishment otherwise
( 7 ) Subsection ( 1 ) shall come into operation on 1 October 2001.
Amendment of section 13 of Act 89 of 1991, as amended by section 29 of Act 136 of 1991, section 19 of Act 136 of 1992, section 15 of Act 20 of 1994, section 30 of Act 27 30 of 1997 a n d section 86 of Act 53 of 1999
70. Section 13 of the Value-Added Tax Act. 1991, is hereby amended by the substitution in subsection ( 5 ) for the words preceding paragraph (a ) and paragraph ( a ) of the following words and paragraph:
“The Commissioner [and the postal company] may make such arrange- 35 ments as [the!-] the Commissioner may deem necessary-
( N ) for the collection (in such manner as [they] the Commissioner may
( i ) an\; officer performing his or her duties under the control.
( i i ) the postal company on behalf of the Commissioner, of the [value-added] tax payable in terms of this Act in respect of the importation of any goods into the Republic: and“.
determine) by-
direction r supervision of the Commissioner: or 40
.Amendment of section 16 ofAct 89 of 1991, as amended by section 21 ofAct NO. 136 of 1992. section 30 of Act No. 97 of 1993. section 16 of Act No. 20 of 1994, section 23 15 of .4ct No. 37 of 1996. section 32 of Act No. 27 of 1997, section 91 of Act NO. 30 of 1998 and section 87 of.4ct No. 53 of 1999
71. ( 1 1 Section 16 of the \blue-Addcd Tax Act. 1991. is hereby amended- io) b!, the addition to subsection (3) of the following paragraph:
“ ( k j an a n ~ o ~ ~ n t of inout tax as determined b), the Commissioner paid by 5 0 a vendor to a supplier of pastoral. ayricultural or other farming products who is not a \rendor. i n terms of a scheme operated by the controlling body of an industry for the development of small-scale farmers approved bv the Minister u4th the concurrence of the
h4inister of .AFriculture and Land Affairs to compensate that supplier for tax incurred in the production of such goods:”; and
(hj by the substitution for the first proviso to subsection (3) of the following
“Provided that n.hrre any \$endor is entitled under the preceding provisions of this subsection to deduct any amount in respect of any tax period from the said sum. the vendor may deduct that amount from the amount of output tax attributable to [any] 2 later tax period which ends no later than five years after the end of the tax period during which the vendor for the first time became entitled to such deduction and to the extent that it has not previously been deducted by the vendor under this subsection:”.
(2) Subsection (1)(b) shall be deemed to have come into operation on 22 June 2001.
proviso:
Amendment of section 58 of Act 89 of 1991, as amended by section 41 of Act 136 of 1991, section 39 ofAct 97 of 1993, section 25 ofAct 46 of 1996 and section 102 ofAct 53 of 1999.
72. Section 58 of the Value-Added Tax. 1991, is hereby amended by the substitution
“ ( I ) being a registered vendor, fails to provide [another registered vendor] for paragraph ( I ) of the following paragraph:
recipient with a tax invoice. credit note or debit note as required by this Act:”.
Amendment of Item 2 and Item 15 of Schedule 2 to Act 89 of 1991, as amended by section 49 of Act 136 of 1991, section 44 of Act 136 of 1992, section 45 of Act 97 of 1993, section 33 of Act 20 of 1994 and section 104 of Act 30 of 1998.
73. Schedule 2 of the Value-Added Tax Act, 1991, is hereby amended by the substitution in Part B for Items 2 and 15 of the following items:
“Item 2
“Item 15
. Maize meal graded as super maize meal, special maize meal, sifted maize meal or unsifted maize meal. not further processed other than by y mass of the final product, solely for the purpose of increasing the nutritional value”: Milk, including hiFh-fat. full-fat, low-fat or fat-free milk, being the milk of cattle, sheep or goats that has not been concentrated, condensed. evaporated: sweetened, flavoured, cultured or subjected to any other process other than homogenization or preservation by pasteurization. ultra-high temperature treatment, sterilization. chilling or freezing or the addition of minerals, vitamins, enzymes and other similar additives not exceeding one per cent by volume of the final product. solelv for the purpose of increasing the nutritional value.”.
Amendment of section 5 of Act 56 of 1996
74. Section 5 of the Road .4ccident Fund Act, 1996 (Act No. 56 of 1996), is hereby
“ ( 3 ) The Chief Executi1.e Officer shall from time to time withdraw money from the Fund for repayment to the Commissioner for the South African Revenue Service of amounts of fuel levy in respect of diesel refunded by the Commissioner and recoverable from the Fund in accordance with the provisions of section 75( 1 A) and ( lB) , respectively. of the Customs and Excise Act. 1963 (Act NO. 91 of 1964).“.
amended by the addition of the following subsection:
Amendment of section 6 of Act 31 of 1998
75. Section 6 of the Uncertificated Securities Tax Act. 1998, is hereby amended by the substitution for subparagraph ( i i i ) of paragraph (0) of subsection (1) of the follov,’ing subparagraph:
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" ( i i i ) i f thc xecu~-itis\ :ire interest bcu-in? d?bc:1tLircs (includiny d c h e n t ~ ~ ~ stock. debenture bnnds and sinlllx xecurities o f ;I juristic pe~-xon. \shcther constituting ;I charye on the asset5 ofthe Jurijtic person or not) listed by an!' Stocli exchangs or by an!' financial e\;change :IS defined i n the Financial hlarhets Control Act. 1989 (Act No. 55 of 1989):". 5
Amendment of section 6 of Act 9 of 1999
76. Section 6 of thc Skills D e \ ~ l o p m e n t Levies Act. 1999. is hereb!, a~nended by the substitution in subsection (5) for the words preceding parrtgraph ( c r ) of the follou'ing words:
"The Commissioner musr. before the se\,enth da! of each month. or such lonyer 10 period as the Commissioner and Director-General may q r e e , notify the Director- Gcneral of--".
Insertion of section 20A in Act 9 of 1999
77. The follou~ing \ection is hereby inserted i n the Skill5 De\,elopnlent Levies Act. 1999. after section 10: 1s
",Jurisdiction of Courts
20A. A person charCed with an offence under this Act may. notwithstand- ing anvthiny to the contrary in any lam: be tried in respect of that offence by any court having jurisdiction \vithin any area in which that person resides or carries on business.". 20
Amendment of section 21 of Act 30 of 2000
78. ( 1 ) Section 2 1 of the Taxation Laws Amendment Act, 2000. i s hereby amended by
" i d ) by the substitution for paragraph (d ) of subsection (1) of the following the substitution for paragraph (dl of subsection ( 1 ) of the follow/ing paragraph:
paragraph: 25 '((1) the receipts and accruals of any [terminating building
society]- ( i ) pension fund. provident fund. retirement annuity fund: a benefit fund: or
( i i i ) [mutual savings bank] mutual loan association. fidelity or 30 indemnity fund. trade union. chamber of commerce or industries (or an association of such chambers). local publicity association or non-proprietary stock exchange approved bv the Colnmissioner-subject to such conditions as the Minister may prescribe by regulation; or 35
(i\ ) company. society or other association of persons established
( n u ) pro\ide social and recreational amenities or facilities for the members of such company. society or other association: or 40
( b h ) promote the common interests of persons (being members of such company. society 01- association of persons) carrying on any partjcular kind of business. profession or occupation.
to-
appro\ ed 11) the Commissioner subject to such conditions as I 45 the hlinister mav prescribe bj' regulation:".
( 2 ) Subsection ( 1 ) shall come into operation on the date that section 21 of the Taxation L;I\\. Amcndmcnt Act . 1000 (.Act S o . 30 of 1000). comes into operation.
Amendment of section 7 of Act 5 of 2001
79. Section 7 of the Taxation Laus .4mendment Act. 2001. is he]-eby amended by the 50 deletion of paragraph (d , of' 5ubsrction ( 1 ) .
Short title and commencement
80. ( 1 ) This Act shall be called the Re\,enue La\d.s Amendment Act. 2001. ( 2 ) Save in so far as is otherwise pro\.ided in this Act or the context otherwise
indicates. the amendments efl-ected to the Income Tax Act: 1963. by this Act shall for 55
purposes of assessments in respect of normal tax under the Income Tax Act. 1962. be deemed to have come into operation as from the commencement of years of assessment ending on or after I January 2002.
SCHEDULE 1
RATES OF NORMAL TAX PAYABLE BY PERSONS (OTHER THAN COMPANIES) IN RESPECT OF THE YEARS OF ASSESSMENT ENDING 28 FEBRUARY 2002 AND 30 JUNE 2002, AND BY COMPANIES IN RESPECT OF YEARS OF ASSESSMEKT ENDING DURING THE PERIOD OF 12 MONTHS ENDING 31 MARCH 2002
(Section 2) 1 . The rates of normal tax referred to in section 2 of this Act in respect of persons
( N ) in respect of the taxable income of any person (other than a company or a person in respect of which subparagraph (0) applies), an amount of tax calculated in accordance with the table below:
(other than companies) are as follows:-
Taxable Income I Rates of Tax Where the taxable inconie- Does not exceed R38 000 .................................. 1 18 Der cent of each R1 of the taxable income: Exceeds R38 000 but does not exceed R55 000
R80 000
R6 840 plus 26 per cent of the amount by which
R 100 000 ‘’ .‘ ” ‘‘ R215 000
R19260 plus 37 per cent of the amount by R80 000 ’ * ‘’ ” ‘. RlOO 000
R11 260 plus 32 per cent of the amount by
R72 660 plus 42 per cent of the amount by R2 15 000
R26 660 plus 40 per cent of the amount by
the taxable income exceeds R38 000; R55 000 3. >. .. ..
which the taxable income exceeds R55 000:
which the taxable income exceeds R80 000:
which the taxable income exceeds RlOO 000;
which the taxable income exceeds R215 000.
(bj in respect of the taxable income of any trust (other than a special trust), an amount of tax calculated in accordance with the table below:
Taxable Income Where the taxable income-
Rates of Tax
R32 000 plus 42 per cent of the amount by Exceeds RlOO 000 32 per cent of each R1 of the taxable income; Does not exceed R100 000
which the taxable income exceeds R 100 000.
2. The rates of normal tax referred to in section 2 of this Act in respect of companies are. subject to the provisions of paragraph 4, as follows:-
an each rand of the taxable income of any company (excluding taxable income referred to in subparagraphs (0j. (c j , (d) , (e ) , (fl. (g) and ( k ) ) , 30 cents, or. in the case of a conlpan). nhich mines for gold on any gold mine and which is in terms of an option exercised by it exempt from the payment of secondary tax on companies. 38 cents; in respect of the taxable income of any company which qualifies as a small busineys corporation. on each rand of the taxable income as does not exceed R100 000. 15 cents. and on each rand of the taxable income of such company as exceeds RlOO 000. 30 cents; on each rand of the taxable income of any employment company, 35 cents:
1 - .
on each rand of the taxable income derived by any company from mining for gold on any gold mine (with the exclusion of so much of the taxable income as the Commissioner determines to be attributable to the inclusion in the gross income of any amount referred to in paragraph ( j ) of the definition of “gross income“ in section 1 of the Income Tax Act. 1962, but after the set-off of any assessed loss in ternls of section 20(1) of the Income Tax Act. 1962), a percentage determined i n accordance with the formula:
185 \ ; = 3 7 - - X
or, in the case of a company which is in terms of an option exercised by i t exempt from the payment of secondary tax on companies, in accordance with the formula:
230 = 46 ---- X
in which formulae y represents such percentage and x the ratio expressed as a percentage which the taxable income so derived (with the said exclusion: but before the set-off of any assessed loss or deduction which is not attributable to the mining for gold from the said minej bears to the income so derived (with the said exclusion): on each rand of the taxable income of any company, the sole or principal business of which in the Republic is. or has been, mining for gold and the determination of the taxable income of which for the period assessed does not result in an assessed loss, which the Commissioner determines to be attributable to the inclusion in its gross income of any amount referred to in paragraph ( j ) of the definition of “gross income“ in section 1 of the Income Tax Act, 1962, a rate equal to the average rate of normal tax or 30 cents, whichever is higher: Provided that for the purposes of this subparagraph, the average rate of normal tax shall be determined by dividing the total normal tax (excluding the tax determined in accordance with this subparagraph for the period assessed) paid by the company in respect of its aggregate taxable income from mining for gold on any gold mme for the period from which that company commenced its gold mining operations on that gold mine to the end of the period assessed. by the number of rands contained in the said aggregate taxable income; on each rand of the taxable income derived by any company from carrying on long-term insurance business in respect of its individual policyholder fund, company policyholder fund and corporate fund, 30 cents; on each rand of the taxable income (excluding taxable income referred to in subparagraphs (b). (c). fd) , (e). ( f , and ( 1 2 ) ) derived by a company which has its place of effective management outside the Republic and which carries on a trade through a branch or agency within the Republic. 35 cents; on each rand of the taxable income derived by a qualifying company as contemplated in section 37H of the Income Tax Act, 1962. subject to the provisions of the said section. zero cents:
Provided that the tax determined in accordance with any of subparagraphs (a ) to ( h ) , inclusive. shall be payable in addition to the tax determined in accordance with any other of the said subparagraphs.
3. The rates set forth i n paragraphs 1 and 2 shall be the rates required to be fixed by Parliament in accordance u3th the provisions of section 5(2) of the Income Tax Act. 1962.
4. For the purposes of paragraph 2- (a ) “small business corporation“ means any close corporation or any company
registered as a private company in terms of the Companies Act, 1973 (Act No. 61 of 1973). the entirz shareholding of which is at all times during the year of assessment held by shareholders or members that are natural persons. where- ( i ) the gross income for the year of assessment does not exceed R1 million;
( i i ) none of the shareholders or members at any time during the year of assessment of the company or close corporation holds any shares or has any interest in the equity of any other company as defined in section I of the Income Tax Act. 1962 (other than a company listed on a stock exchange as defined in the Stock Exchanges Control Act, 1985 (Act No. 1 of 1985). or any unit portfolio contemplated in paragraph (e) of the definition of ‘company‘ in section 1):
(ili) not more than 20 per cent of the gross income of the company or close corporation consists collectively of investment income and income from the rendering of a personal service: and
( i v ) such company is not an employmen[ company; ( ( 1 ) “employment company“ means any company-
( i ) which is a labour broker as defined in the Fourth Schedule to the Income Tax Act. 1962. other than a labour broker in respect of which a certificate of exemption has been issued in terms of paragraph 2(5) of the said Schedule: or
( i i ) which is a personal ser\,ice company as defined in the said Fourth Schedule;
( c ) “investment income“ means- ( i ) any income in the form of dividends, royalties, rental, annuities or
income of a similar nature; (ii) any interest as contemplated in section 24J of the Income Tax Act, 1962,
any amount contemplated in section 24K of the said Act and any other income which. by the la\vs of the Republic administered by the Commissioner, is subject to the same treatment as income from money lent; and
(iii) any proceeds derived from investment or trading in financial instruments (including futures. options and other derivatives), marketable securities or immo\pable property:
(dj “personal service” means any service in the field of accounting, actuarial science, architecture, auctioneering, auditing, broadcasting, broking, com- mercial arts. consulting, draftsmanship, education. engineering, entertain- ment. health. information technology, journalism, law. management, perform- ing arts, real estate, research, secretarial services, sport, surveying, translation. valuation or veterinary science, which is performed personally by any person who holds an interest in the company or close corporation; and
(e) income derived from mining for gold shall include any income derived from silver. osmiridium, uranium, pyrites or other minerals which may be won in the course of mining for gold, and any other income which results directly from mining for gold.
5 . In this Schedule, unless the context otherwise indicates, any word or expression to n,hich a meaning has been assigned in the Income Tax Act. 1962. bears the meaning so assigned.
SCHEDULE 2
AMENDMENTS TO SCHEDULE NO. 1 TO THE CUSTOMS AND EXCISE
TARIFF ITEM
03.00
L 104.00
04.01
10
104.05
1 0
ACT, 1963
(SECTION 52)
I TARIFF I DESCRIPTION
! HEADING 1
By the substitution for rarlff iten] 104.00 of the followtng:
PREPARED FOODSTUFFS; BEVER- AGES, SPIRITS AND VINEGAR: TO- BACCO
9.01 hlALT EXTRACT: FOOD PREPARA- TlONS OF FLOUR. MEAL, STARCH OR MALT EXTRACT. NOT CONTAINING COCOA POWDER OR CONTAINING COCOA POWDER IN A PROPORTION, BY MASS, OF LESS THAN 50 PER CENT, NOT ELSEWHERE SPECIFIED OR INCLUDED: FOOD PREPARATIONS OF GOODS OF HEADINGS NOS. 04.01 TO 04.04, NOT CONTAINING COCOA POWDER OR CONTAINING COCOA POWDER IN A PROPORTION, BY MASS. OF LESS THAN 10 PER CENT, NOT ELSEWHERE SPECIFIED OR IN- CLUDED:
Preparations based on sorghum flour, put ur for making beverages
21.01 ARTIFICIAL MINERAL WATERS AND WATERS, INCLUDING NATURAL OR
AERATED WATERS, NOT COKTAININC
ING MATTER NOR FLAVOURED; ICE AND SNOW
ADDED SUGAR OR OTHER SWEETEN-
i2.02 WATERS, INCLUDING MINERAL WA-
TAINING ADDED SUGAR OR OTHER TERS AND AERATED WATERS, CON-
SWEETENING MATTER OR FLAVOURED, AND OTHER NON-AL- COHOLIC BEVERAGES (EXCLUDING FRUIT OR VEGETABLE JUICES OF HErZDING NO. 20.09):
/Mtneral waters. including spa waters and ]aerated waters. put up in closed bottles or other cloyed containers ready for drinking wirhout dilution (excluding beverages
/packed in plastic tubes or similar containers and which are normally consumed In a fro- zen state)
Lctnonade and fla~oured mineral waters, including fla\oured spa and aerated waters, put up in closed bottles or other closed con- tainers ready for drinkmf without dilution (excluding beverages pached in plastic tubes or stmilar containers and which are normall? consumed in a frozen state)
RATE OF DUTY -
EXCISE
34.7ckg
6cil
6cli
CUSTOMS
34.7ckg
6cll
6Cil
KATE OF DVTY T.4RlFF TARIFF ' DESCRIPTIOK ITEM HEADING
I I EXCISE 6Cll
CUSTOMS 6cll .30 1 Non-alcoholic beverages not elssx here
[specified or included in this tariff Item, put up in closed bottles or other closed contain- ers read! for drinking without dilution (ex- cludlng beverages packed in plastic tubes or similar containers and which are nona l ly consumed in a frozen state)
104.10 122. 3 IBEER MADE FROM MALT 2373cn of absolute
alcohol
2373cn of absolute
alcohol
104.15
20.09 OTHER THAN THAT OF HEADING NO. FORTIFIED WINES; GRAPE MUST, WINE OF FRESH GRAPES. INCLUDING 22.04
VERMOUTHS AND OTHER N'INE OF FRESH GRAPES FLP;VOURED WITH PLANTS OR AROMATIC SUBSTANCES
OTHER FERMENTED BEVERAGES (FOR EXAMPLE, CIDER, PERRY AND MEAD):
.05 Sorghum beer (excludlng beer made from oreoarations based on sorehum flour)
7.82cIl 7.82ci1
74.7cn
169cn
74.7cn
I 69cn . I O
Other still fermented beverages. unfortified .so Fonified still wine .40
Unfortified still wine
120.8c/l
214.3cll
206.9cA
254.8cA
.60
Sparkl~ng wine .70
Other still fermented beverages, fortified
.80 Other fermented beverages (excluding sor- ghum beer)
104.20 UNDENATURED ETHYL ALCOHOL OF 22.07 AN ALCOHOLIC STRENGTH BY VOL- UME OF 80 PER CENT VOLUME OR HIGHER: ETHYL ALCOHOL AND OTHER SPIRITS, DENATURED, OF A N I STRENGTH
22.08 UNDENATGRED ETHYL ALCOHOL OF AN ALCOHOLIC STRENGTH BY \'OL- UME OF LESS THAN 80 PER CENT VOLUME; SPIRITS. LIQUEURS AND OTHER SPlRITUOUS BEVERAGES.
2 s 4 . 8 ~ n
. I0 3337cn of absolute
alcohol
M'ine splrlts. manufactured in the Republic by the distillation of wine
Spirits. manufactured in the Republic by thc distillation of any sugar cane product
I
3337~11 of absolute
alcohol
3337clI of absolute
alcohol
3337cn of absolute
alcohol -
Spirits, manufactured in the Republic by thc :d;stillation of any grain product
2 5
2 9 I /Other splrlts. manufactured I n the Republic I I 1
.60 I
Imported splnts of any nature. including spirits in imponed spirituous beverages (ex cludlng liqueurs, cordials and similar spiri- tuous beverages containing added sugar) and in compound alcoholic preparations of an alcohol~c strength exceeding 1,713 per
314 I cn of absolute
alcohol or 1394cA
Icen: alcohol by volume
r i I L
t
c
I I TARIFF RATE OF DUTY TARIFF j DESCRIPTION
JTERl HEADISG ' EXCISE CUSTOhIS
7L' 3241c/l of ab- - Spir i ts of an:' nature I n lmportcd liqueurs.
i cordials and similar spirituous be\ rragrs containing added sugar. uith or wthout
Lolute alcohol
flavouring substances
104.30 ClG.4RS. CHEROOTS. CIGARILLOS 25.02 AND CIGARETTES. OF TOBACCO OR TOB.4CCO SUBSTITUTES
I I /Cigars 1 66 42Wkg I 66 420c/kg 20 158.4d10 158.4ci10 Cigarettes
clgarettes clgarettes 103.3.5 OTHER MANUFACTURED TOBACCO 24.03
AND MANUFACTURED TOBACCO SUBSTITUTES 'HOMOGENISED' OR 'RECONSTITUTED' TOBACCO EX- TRACTS AND ESSENCES:
. I O Cigarette tobacco I 7167ckg I 7167ckg
.30 /Pipe tobacco 4677cikg 4677ckg 1 net 1 net".