| (1) |
Where the Commissioner does not within the period of 21 business days after the date on which the vendor’s return in respect of a tax period is received by an office of the South African Revenue Service refund any amount refundable in terms of section 44, interest shall be paid on such amount at the prescribed rate (but subject to the provisions of section 45A) and calculated for the period commencing at the end of the first-mentioned period to the date of payment of the amount so refundable: |
[Words preceding the proviso of section 45(1)(i) substituted by section 23(a) of the Tax Administration Laws Amendment Act, 2023, GG49947, dated 22 December 2023 ]
| (i) |
where such return made by the vendor is incomplete or defective in any material respect the said period of 21 business days shall be reckoned from the date on which— |
| (aa) |
the vendor rectifies the return and satisfies the Commissioner in writing that the incompleteness or defectiveness of the return does not affect the amount refundable; or |
| (bb) |
information is received by the Commissioner to enable him to make an assessment upon the vendor reflecting the amount properly refundable to the vendor; |
| (iA) |
where the vendor is in default in respect of any of his obligations under this Act or any other Act administered by the Commissioner, to furnish a return as required by such Act, the said period of 21 business days shall be reckoned from the date on which any such outstanding return or returns furnished by the vendor as required by such Act are received by an office of the South African Revenue Service; |
| (ii) |
where the Commissioner is prevented from satisfying himself as to the amount refundable in terms of section 44 by reason of not being able to gain access to the books and records of the vendor concerned after having, within a reasonable time, made a request by registered post, facsimile transmission, electronic means or personal delivery, to the vendor for access to such books and records during the period of 21 business days contemplated in this subsection, the said period of 21 business days shall be suspended from the date of despatch of such request by registered post, facsimile transmission, electronic means or the date of delivery of the personal delivery, until the date on which such access is granted. |
[Section 45(1)(ii) substituted by section 23(b) of the Tax Administration Laws Amendment Act, 2023, GG49947, dated 22 December 2023 ]
| (aa) |
has not furnished the Commissioner with the particulars of the banking account of the enterprise; or |
| (bb) |
has not notified the Commissioner that a refund or other amount be transferred to a bank account or an account with a similar institution other than that of the vendor as contemplated in the proviso to section 44(3)(d), the said period of 21 days shall be reckoned from the date the vendor furnishes the Commissioner with the particulars of the bank account or account with a similar institution of the enterprise or from the date the vendor has notified the Commissioner that a refund or other amount be transferred to a bank account or an account with a similar institution other than that of the vendor |
[Section 45(1)(iiA) inserted by section 44 of Act No. 61 of 2008]
| (iii) |
where the vendor is not a resident of the Republic and— |
| (aa) |
has not appointed a representative vendor as contemplated in section 46 or has not furnished the Commissioner with the particulars of such representative vendor; |
| (bb) |
has not opened a banking account in the Republic as required by section 23(2) and (2B) or has not furnished the Commissioner with the particulars of such banking account; |
| (cc) |
is a company, the vendor has not complied with the requirements as laid down in terms of the proviso to section 44(3)(d); or |
| (dd) |
has not furnished the Commissioner, in writing, with particulars of the enterprise’s banking account as required in terms of section 44(3)(e), |
the said period of 21 business days shall be reckoned from the date the vendor furnishes the Commissioner with the particulars of such representative vendor, banking account or notification and indemnity, as the case may be.
[Section 45(1)(iii) substituted by section 13(a) of the Tax Administration Laws Amendment Act, 2026, Notice No. 7343, GG54447, dated 1 April 2026]
| (2) |
Where the amount of any interest paid to a person in terms of subsection (1) is in excess of the current amount, the Commissioner may recover the amount of the excess as if it were tax payable by such person. |
[Section 45(2) substituted by section 13(b) of the Tax Administration Laws Amendment Act, 2026, Notice No. 7343, GG54447, dated 1 April 2026]
| (3) |
The payment by the Commissioner of any interest under the provisions of this section shall be deemed to be a drawback from revenue charged to the National Revenue Fund. |
Medical Schemes Act, 1998
