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Income Tax Act, 1962 (Act 58 of 1962)


Seventh Schedule : Benefits or Advantages Derived by reason of Employment or the Holding of any Office

3. Determination of cash equivalent of value of taxable benefit


(1) The cash equivalent of the value of a taxable benefit shall, for the purposes of paragraph (i) of the definition of "gross income" in section 1 of this Act, be determined in accordance with the provisions of this Schedule by the employer by whom the taxable benefit has been granted.


(2) The Commissioner may, if no determination is made, or if such determination appears to him or her to be incorrect, re-determine such cash equivalent—
(a) and issue the employer with a notice of the assessment in terms of section 96 of the Tax Administration Act for the unpaid amount of employee’s tax that is required to be deducted or withheld from such cash equivalent; or

[Paragraph 3(2)(a) of the Seventh Schedule substituted by section 15 of the Tax Administration Laws Amendment Act, 2016 (Act No. 16 of 2016)]

(b) upon the assessment of the liability for normal tax of the employee to whom such taxable benefit has been granted.

[Paragraph 3(2)(b) of the Seventh Schedule substituted by section 23 of Act No. 8 of 2010]


(3) If the employee concerned is dissatisfied with any determination or proposed determination by his or her employer of the cash equivalent of the value of any taxable benefit included in the remuneration of the employee for employees’ tax purposes, the employee or the employer may refer the matter to the Commissioner and the Commissioner may, if it appears to him or her that the determination or proposed determination should be adjusted, issue a directive to the employer as to the manner in which such determination should be made and the employer shall be obliged to act upon such directive: Provided that nothing in this subparagraph contained shall be construed as preventing the Commissioner from making a re-determination of such cash equivalent under the provisions of subparagraph (2).

[Paragraph 3(3) of the Seventh Schedule substituted by section 21 of the Taxation Laws Amendment Act, 2022 (Act No. 20 of 2022), Notice No. 1541, GG47826, dated 5 January 2023]