Taxation Law Amendment Act
REPUBLIEK VAN SUID-AFRIKA
STAATSKOERANT
GOVERNMENT. GAZETTE
OF THE REPUBLIC OF SOUTH AFRICA
As 'n Nuusbladby die Poskantoor Geregistreer Registered at the Post Office as a Newspaper
VoL. 301
· Verkoopprys • Selling price (AVB uitgesluiUGST excluded)
Plaaslik 70c Local Buitelands R1 ,00 Other countries
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KAAPSTAD; 4 JULIE 1990
CAPE TOWN, 4 JULY 1990 No. 12588
KANTOOR VANDIESTAATSPRESIDENT STATE PRESIDENT'S OFFICE
No.1464. 4Julie 1990 No. 1464; 4July 1990
Hierby word bekend gemaak dat die Staatspresident sy goedkeuring geheg het aan die . onderstaande Wet wat hierby ter algemene inligting gepubliseer word:-
• . 89 van 1990: Wysigingswet op Belastingwette, 1990.
It is hereby notified that the State President has assented to the following Act which is hereby published for general information:-
No. 89 of 1990: Ta.Xation ~aws Amendment Act, 1990.
Please note that most Acts are published in English and another South African official language. Currently we only have capacity to publish the English versions. This means that this document will only contain even numbered pages as the other language is printed
on uneven numbered pages.
GOVERNMENTGAZETIE,4JULY1990 No.12588 3
TAXATION LAWS AMENDMENT ACI', 1990 Act No. 89, 1990
GENERAL EXPLANATORY NOTE:
[ ] Words in bold type in square brackets indicate omissions fi:om existing enactments. .
Words underlined with solid line indicate insertions in exist- ing enactments.
ACT To amend the Sales Tax Act, 1978, so as to further define "exported", "goods" and "specified country"; to further provide for exemption from silles tax; to further regulate the reduction of the taxable value placed on any sale of goods relating to delivery charges; to provide for condonation of delays in lodging requests for referrals to a sales tax advisory committee and in lodging notices of appeal against the disallowance of objections; to further provide for amendments of the grounds of objection at the hearing of appeals; to further regulate the payment of interest on any refund of sales tax as a result of an appeal; to make new provision for prosecution in cases where sales tax is included or added on by an unregistered vendor to the price or amount charged in respect of certain transactions not leviable with such tax and such vendor fails to . pay the tax to the Commissioner for Inland Revenue; and to
, amend Schedule 1 to the said Act; to amend the Regional Services Councils Act, 1985, · to make other provision in connection with the delegation by a regional services
council of certain of its powers; to amend the Taxation Laws Amendment Act, 1988, in order to extend certain periods of exemption from stamp duty and transfer duty in respect of certain registrations of transfer of marketable securities or acquisitions of property consequent upon the rationalization of a group of companies; to provide for a single exemption from stamp duty and transfer duty in respect of the privatization of the Deciduous Fruit Board; and to provide for matters connected therewith.
(Afrikaans text signed by the State President.) (Assented to 21 June 1990.)
BE IT ENACTED by the State President arid the Parliament of the Republic of South Africa, as follows:-
Amendment of section 1 of Act 103 ofl978, as amended by section 1 of Act Ill of 1979, section 1 of Act lOS of 1980, section 1 of Act 97 of 1981, section 1 of Act 90 of
5 1982, section 1 of Act 95 of 1983, section 1 of Act 99 of 1984, section 1 of Act 102 of 1985, section 1 of Act 70 of 1986, section 1 of Act 31 of 1987, section 12 of Act 86 of 1987, section 37 of Act 87 of 1988 and section 17 of Act 69 of 1989
1. (1) Section l of the Sales Tax Act, 1978, is hereby amended- (a) by the deletion in subparagraph (i) of paragraph (bA) of the definition of
10 · "exported" of the' expression "or VSJ"; 0
(b) by the deletion at the end of paragraph (bA) of the definition of "exported" of the word "and";
(c) by the insertion after paragraph (bA) of the definition of "exported" of the following paragraph:
0
15 "(bB) as res ects a seller under a sale to any purchaser who is a foreign tounst or vtsttor to the Republic rom any place outst e the common! customs area as defined in section 1 of the Customs and Excise Act,
GOVERNMENTGAZETIE, 4JULY 1990 No.12588 5
TAXATIONLAWSAMENDMENT ACf,l990 Act No. 89, 1990
5
(d)
10
(e)
15 "'specified country' means Botswana, Lesotho, Swaziland, [the territory of South West Africa] Namibia or any country the territory of which formerly formed part of the Republic;".
(2) (a) Subsection (1) (a) shall be deemed to have come into operation on 15 March 1990. ·
20 (b) Subsection (1) (b) and (c) shall be deemed to have come into operation on 17 April1990.
(c) Subsection (1) (e) shall be deemed to have come into operation on 21 March 1990. ·
Amendment of section 6 of Act 103 of 1978, as amended by section 4 of Act 111 of 25 1979, section 2 of Act 105 of 1980, section 3 of Act 97 of 1981, section 2 of Act 90 of
1982, section 3 of Act 95 of 1983, section 3 of Act 99 of 1984, section 3 of Act 102 of 1985, section 2 of Act 70 of 1986, section 2 of Act 31 of 1987 and section 14 of Act 86 of 1987
2. (1) Section 6 of the Sales Tax Act, 1978, is hereby amended- 30 (a) by the substitution for subparagraph (iii) of paragraph (f) of subsection (1)
of the following subparagraph: "(iii) such goods consist of [returnable] containers intended to be let by the
vendor in the ordinary course of [his] a rental enterprise in respect of which he is so registered for use in any foretgn-going [ships] shtp or
35 foreign-going aircraft;" ; - - (b) by the substitution for paragraph (o) of subsection (1) of the following
paragraph: . . . "(o) any rental consideration payable to the Department of Posts and
Telecommunications or to the telecommunications com any as defined 40 in the Post Office Act, 1 58 Act No. 4 o 1 ; m respect o
telephones [or] and telex equipment;"; and (c) by the substitution fOr"Subparagraph (i) of paragraph (s) of subsection (1)
of the following subparagraph: "(i) any taxable service (other than any service referred to in ara ra h 1A
45 of Schedule 1) w tc w o y or mam y outst e t e Republic;".
(2) Subsection (1) (a) shall be deemed to have come into operation on 21 June 1989. .
Amendment of section 7 of Act 103 of 1978, as amended by section 5 of Act 111 of · 50 1979, section 3 of Act 105 of 1980, section 4 of Act 97 of 1981, section 4 of Act 95 of
1983, section 4 of Act 99 of 1984, section 3 of Act 70 of 1986, section 15 of Act 86 of 1987 and section 19 of Act 69 of 1989
3. (1) Section 7 of the Sales Tax Act, 1978, is hereby amended by the substitution for paragraph (i) of the proviso to paragraph (a) of subsection (1) of the following
55 paragraph: "(i) where such sum includes any delivery charge which is charged by the seller
[separately from] and shown as a separate item on any invoice, cash slip or other statement relattng to the price charged for the goods under such sale,
GOVERNMENTGAZEITE,4JULY1990 No. 12588 7
TAXATIONLAWSAMENDMENT ACf,l990 Act No. 89, 1990
such sum shall be reduced by so much of the delivery charge so shown as is sufficient to reduce such sum to an amount equal to the full price which the seller would normally have charged for the said goods if not delivered by the seller;".
5 (2) Subsection (1) shall come into operation on 1 July 1990.
Amendment of section 20 of Act 103 of 1978, as amended by section 10 of Act 99 'or 1984, section 8 of Act 70 of 1986 and section 8 of Act 31 of 1987
4. Section 20 of the Sales Tax Act, 1978, is hereby amended by the substitution for subsection (2) of the following subsection:
10 "(2) Every request for a matter to be referred to an· advisory committee under the provisions of subsection (1) shall be in writing and shall be lodged with the Commissioner within 21 days after the date of the notification by the Commis- sioner given in terms of section 12 (3), 13 (9), 19 (5) or 36 (4) or the proviso to section 32 (1), as the case may be; unless the Commissioner is satisfied that
15 reasonable grounds exist for any delay in lodgmg such request.".
Amendment of section 22 of Act 103 of 1978, as amended by section 4 of Act 90 of 1982 and section 12 of Act 99 of 1984
S. (1) Section 22 of the Sales Tax Act, 1978, is hereby amended- (a) by the substitution for subsection (2) of the following subsection:
20 "(2) (a) Every notice of appeal shall be in writing and shall be lodged withthe Commissioner within a period of [thirty] 30 days after the date of the notice mentioned in section 21 (4) [and such notice of appeal shall be of no force or effect whatsoever unless it is lodged within the said period] .
. 25 (b) No notice of appeal shall be of any force or effect whatsoever unless it is delivered at the office of the ommiss10ner, or poste to the Commissioner in sufficient time to reach him, on or before the last day
. of the period allowed for the lodging of such notice, except if the Commissioner is satisfied that reasonable grounds exist for any delay in
30 lodging such notice: Provided that any decision of the Commissioner in the exercise of his discretion under this paragraph shall be subject to objection and appeal.";
(b) by the substitutiOn for paragraph (a) of subsection (3) of the following paragraph:
35 "(a) the appellant shall be limited to the grounds stated in the notice of objection referred to in section 21 (2), unless the Commissioner agrees to the amendment of such grounds: Provi e that the specml court may, on good cause shown at the hearing of the appeal, permit the appellant to . amend such notice of objection within a reasonable
40 period, subject to such conditions with regard to any postponement of the hearing of the a peal and costs as the special court may deem fit;"; an ,
(c) by the substitution for subsection (5) of the following subsection: "(5) The obligation to pay and the right to receive and recover any tax
45 · · chargeable under this Act shall not, unless the Commissioner so directs, be suspended by any appeal or pending the decision of a court of law under section 86A of the Income Tax Act, as applied by subsection (4) of this section, but if any assessment is altered on appeal or in conformity with any such decision or any decision by the Commissioner to concede the appeal
50 ·to the special court or such court of law a due adjustment shall be made, amounts pmd m excess bemg refunded with interest at the rate [of 10 per cent per annum] contemplated in aragraph (b) 'of the definition of ' rescribed rate' in sect1on 1 o t e Income Tax Act, such mterest emg calculate from the ate prove to the satts action o the Commtsstoner to
55 · be the date on which such excess was received and amounts shortpaid being recoverable with penalty calculated as provided in section 25 (1) [:Provided
GOVERNMENTGAZETTE,4JULY1990 No.12588 9
TAXATION LAWS AMENDMENT ACf, 1990 Act No~ 89, 1990
that where such date falls before 1 July 1982, the interest payable for the period from such date to 30 June 1982 shall be calculated at the rate of 7,5 per cent per annum].".
(2) Subsection (1) (c) shall be deemed to have come into operation on 1 July 1989.
5 Amendment of section 43 of Act 103 of 1978, as amended by section 18 of Act 111 of 1979, section 14 of Act 70 of 1986 and section 12 of Act 31 of 1987
6. Section 43 of the Sales Tax Act, 1978, is hereby amended- ( a) by the insertion at the end of subparagraph (iii) of paragraph (d) of the
word "or"; and 10 (b) by the addition of the following paragraph:
"(e) not being a vendor who is registered under section 12 in respect of any enterprise, knowingly and without lawful excuse (the burden of proof whereof shall be upon. him) includes in or adds on to the price or amount charged to any other person who is a party to any transaction
15 (other than any transaction referred to in paragraph (d)) any tax, where in fact no tax is payable in terms of this Act, and fails to pay such tax to the Commissioner,".
Amendment of Schedule 1 to Act 103 of 1978, as amended by section 19 of Act Ill of 1979, section 7 of Act 105 of 1980, section 8 of Act 97 of 1981, section 8 of Act 90 of
20 1982, section 8 of Act 95 of 1983, section 15 of Act 99 of 1984, section 17 of Act 70 of 1986, section 20 of Act 86 of 1987, section 42 of Act 87 of 1988 and section 23 of Act 69 of 1989
7. Schedule 1 to the Sales Tax Act, 1978, is hereby amended- (a) by the substitution for subitem (aa) of item (ii) of subparagraph (b) of
25 paragraph 1 of the following subitem: "(aa) any plant or equipment used for the purposes of heating (other than
hot-water cylinders, non-industrial boilers or solar water heaters), ventilation, air-conditioning, refrigeration, television or radio or any communication system (including any alarm signalling system) other
30 than any communication system installed by the Department of Posts and Telecommunications or the telecommunications com any as de- fined in the Post Office Act. 1 58 Act o. of 1 58 ; or' ; an
(b) by the substitution for paragraph lA of the following paragraph: "lA. For the purposes of this Act, where any agreement provides-
35 (a) for the supply of any asset referred to in paragraph 1 (b) (ii); and (b) for the rendering of [a] any servtce whtch m terms of [subparagraph] - baragraph 1 (b) (ii), [ori(DA) or (bB) [of paragraph 1] is deemed to
e a taxable service, . and the consideration payable under such agreement to the person supply-
40 ing such asset and rendering such service is payable in respect of the Sii'jjj)iy of such asset and the rendering of such service [and] (including any materials, components or other goods supplied by such person which are required for the rendering of such service), the said agreement as a whole shall be treated as an agreement for the rendering of [such] a taxable
45 service and the said consideration shall be deemed to be payable In respect of such taxable service.".
Amendment of section llA of Act 109 of 1985, as inserted by section 7 of Act 78 of 1986 and amended by section 13 of Act 49 of 1988
8. Section llA of the Regional Services Councils Act, 1985, is hereby amended by 50 the substitution for paragraph (i) of the following paragraph:
"(i) the [imposition and claiming] determination of a rate of a levy, or tl..~ appropriation of funds in terms of sectiOn 12; 1'.
GOVERNMENTGAZETIE,4JULY1990 No.12588 11
TAXATIONLAWSAMENDMENT Acr, 1990 Act No. 89, 1990
Amendment of section 48 of Act 87 of 1988, as amended by section 26 of Act 69 of 1989 ·
9. Section 48 of the Taxation Laws Amendment Act, 1988, is hereby amended- ( a) by the substitution in the definition of "controlling company" in subsection
(1) for the expression "22 May 1989" of the expression "11 June 1990"; and · ' 5 (b) by the substitution for the expression "30 June 1990", wherever it occurs,
of the expression "30 June 1991".
Speciai exemption in respect of privatization of the Deciduous Fruit Board
10. (1) No transfer duty or stamp duty shall be payable in respect of the passing of assets, rights, liabilities and obligations of the Deciduous Fruit Board to Unifruco
10 Limited in terms of the agreement dated 1 March 1990 between the Deciduous Fruit Board, Unifruco Limited and Universal Frutrade (Co-operative) Limited.
(2) No stamp duty shall be payable in respect of the first issue of shares by Unifruco Limited to Universal Frutrade (Co-operative) Limited and producers as referred to in paragraph 3.1 of the statutes of Unifruco Limited.
15 (3) Subsections (1) and (2) shall be deemed to have come into operation on 1 October 1988. ··
Short title
11. This Act shall be called the Taxation Laws Amendment Act, 1990.