| (1) |
If a tax debt or refund payable by SARS is not paid in full by the effective date, interest accrues, and is payable, on the amount of the outstanding balance of the tax debt or refund— |
[Section 187(1) substituted by section 59(1)(a) of the Tax Administration Laws Amendment Act, 2015 (Act No. 23 of 2015)]
| (2) |
Interest payable under a tax Act is calculated on the daily balance owing and compounded monthly, and the Commissioner may prescribe by public notice from which date this method of determining interest will apply to a tax type. |
| (3) |
The effective date for purposes of the calculation of interest in relation to— |
| (a) |
tax other than income tax or estate duty for any tax period, is the date by which tax for the tax period is due and payable under a tax Act; |
| (b) |
income tax for any year of assessment, is the date falling seven months after the last day of that year in the case of a taxpayer that has a year of assessment ending on the last day of February, and six months in any other case; |
| (c) |
estate duty for any period, is the earlier of the date of assessment or 12 months after the date of death; |
| (d) |
a fixed amount penalty referred to in section 210, is the date of assessment of the penalty, and in relation to an increment of the penalty under section 211(2), the date of the increment; |
[Section 187(3)(d) substituted by section 66 of the Tax Administration Laws Amendment Act, 2012 (Act No. 21 of 2012)]
| (e) |
a percentage based penalty referred to in section 213, is the date by which tax for the tax period should have been paid; |
| (g) |
an outstanding tax debt referred to in section 190(5), is the date of payment of a refund which is not properly payable under a tax Act; and |
| (h) |
an erroneous payment referred to in section 190(1)(b), is the date 30 days after the date that the payment was made. |
[Section 187(3)(h) inserted by section 31(c) of the Tax Administration Laws Amendment Act, 2020 (Act No. 24 of 2020), GG44080, dated 20 January 2021]
[Section 187(3) substituted by section 59(1)(b) of the Tax Administration Laws Amendment Act, 2015 (Act No. 23 of 2015)]
| (5) |
The effective date in relation to a jeopardy assessment is the date for payment specified in the jeopardy assessment. |
| (6) |
If a senior SARS official is satisfied that interest payable by a taxpayer under subsection (1) is payable as a result of circumstances beyond the taxpayer's control, the official may, unless prohibited by a tax Act, direct that so much of the interest as is attributable to the circumstances is not payable by the taxpayer. |
| (7) |
The circumstances referred to in subsection (6) are limited to— |
| (a) |
a natural or human-made disaster; |
| (b) |
a civil disturbance or disruption in services; or |
| (c) |
a serious illness or accident. |
| (8) |
SARS may not make a direction that interest is not payable under subsection (6) after the expiry of three years, in the case of an assessment by SARS, or five years, in the case of self-assessment, from the date of assessment of the tax in respect of which the interest accrued. |
[Section 187(8) substituted by section 59(1)(c) of the Tax Administration Laws Amendment Act, 2015 (Act No. 23 of 2015)]
Public Service Commission Act, 1997
