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Income Tax Act, 1962 (Act 58 of 1962)

Schedules

Fourth Schedule

Amounts to be Deducted or Withheld by Employers and Provisional Payments in respect of Normal Tax

Part II: Employees' Tax

16. Liability of Representative Employers and Others (Repealed)

 

 

[Paragraph 16 was repealed by the Tax Administration Act, 2011 (Act No. 28 of 2011)].

 

1) Every representative employer shall as regards the remuneration which the employer whom he or she represents pays or is liable to pay to any employee or which is paid or payable by the representative employer in his or her representative capacity, be subject in all respects to the same duties, responsibilities and liabilities under this Schedule as if that remuneration were remuneration paid or liable to be paid by him or her in his or her personal capacity.

 

2) Any liability for employees' tax or interest on employees' tax or any penalty imposed under this Act in respect of non-compliance with this Part of any person who in terms of the definition of "employer" in paragraph 1 is an employer by virtue of such person having paid or become liable to pay remuneration in a fiduciary capacity or in the person’s capacity as a trustee in an insolvent estate, an executor, or an administrator of a benefit fund, pension fund, pension preservation fund, provident fund, provident preservation fund, retirement annuity fund or any other fund, or as a representative employer, shall be limited to the extent only of any assets belonging to the person, body, trust, estate or fund represented or administered by such person which may be in the possession or under the management, disposal or control of such person.

 

2A) Every representative employer or other person who is personally liable as contemplated in subparagraphs (2), (2B) or (2C), who, as such, pays any employees’ tax, additional tax, penalty or interest due under this Act shall be entitled to recover the amount so paid from the person on whose behalf it is paid, or to retain out of any moneys that may be in his or her possession or may come to the representative employer in his or her representative capacity, an amount equal to the amount so paid.

 

2B) Every representative employer and person contemplated in subparagraph (2) shall be personally liable for the payment of any employees’ tax, additional tax, penalty or interest payable by that representative employer or person in his or her representative capacity to the extent that the representative employer or person, while it remains unpaid,—
a) alienates, charges or disposes of any money received or accrued in respect of which the tax is chargeable; or
b) disposes of or parts with any fund or money belonging to the employer whom he or she represents which is in his or her possession or comes to him or her after the employees’ tax, additional tax, penalty or interest has become payable, if such employees’ tax, additional tax, penalty or interest could legally have been paid from or out of such fund or money.

 

2C) Where an employer is a company, every shareholder and director who controls or is regularly involved in the management of the company’s overall financial affairs shall be personally liable for the employees’ tax, additional tax, penalty or interest for which the company is liable.

 

2D) Notwithstanding subparagraph (2), the employees’ tax, additional tax, penalty or interest for which any representative employer or other person is liable in terms of subparagraph (2B) or (2C) shall be fully recoverable by the Commissioner from that representative employer or other person to the extent that it remains unpaid by the employer.

 

3) The executor of the estate of any deceased employer or the trustee of the insolvent estate of any employer shall fulfill such obligations of the deceased or insolvent employer under paragraphs 13 and 14 as arise in consequence of that employer ceasing to be an employer because of his death or insolvency, or as have not been fulfilled by such employer before his death or insolvency.