The answer to this query is based on legislation as at2014/03/17.
Q: How is
the death and disability insurance of approved and unapproved funds taxed on
terms of the amendments to paragraph 2(k) of the Seventh Schedule to the Income Tax Act, Act 58 of
1962, as amended, any direct or indirect contribution by an employer to an
insurer in respect of insurance benefits for the benefit of an employee, his
spouse, children, dependent or nominee will constitute as a taxable fringe
benefit in the employees’ hands.
The cash equivalent of this taxable benefit
is calculated in accordance with the new paragraph 12C of the Seventh
Schedule, and is the amount of the expenditure incurred by the employer in respect
of any premium payable. IRP5/IT3(a) detail: The taxable benefit must be indicated under the income code
3801 on the IRP5/IT3 (a) certificates.
Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.
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