Q: In respect of
section 64K(6) of the Income Tax Act, from what date is for interest levied by SARS on the balance of
outstanding dividends tax? Up to December 2014, interest has not been levied on
the statement of account where payments were made after the due date.
A:Section 64K(6) of the Income
Tax Act was inserted by 53(1) of the Taxation Laws Amendment Act 17 of 2009.
The effective date was by promulgation in the gazette (GG34873 20 Dec 2011) and
commenced on 1 April 2012 (implementation date of dividends withholding tax).
The provision has been repealed by para 55 of Schedule 1 to the TAA but this
amendment only commences by a date promulgated in the Gazette (which has not
happened as yet) when all the interest provisions are consolidated into TAA.
Disclaimer: Nothing in this query and answer should be construed as
constituting tax advice or a tax opinion. An expert should be consulted for
advice based on the facts and circumstances of each transaction/case. Even
though great care has been taken to ensure the accuracy of the answer, SAIT do
not accept any responsibility for consequences of decisions taken based on this
query and answer. It remains your own responsibility to consult the relevant
primary resources when taking a decision.
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