Section10 of the Estate Duty Act provides that if any estate duty remains unpaid at the expiration of a period of thirty days from the date of payment notified in the estate duty assessment, interest at the rate of 6% a year is payable on the amount of unpaid duty. The interest is calculated from the end of the thirty-day period to the date of payment. But when the assessment of duty is delayed beyond a period of twelve months from the date of death, interest at the rate of 6% a year is payable as from a date twelve months after the date of death on the difference (if any) between the duty assessed and any deposit made on account of the duty payable within the twelve-month period.
But if the Commissioner is satisfied that the delay in the payment of duty within the thirty-day or twelve-month period has not been occasioned either by the executor or by any person liable for the duty, he may allow an extension of time within which the duty may be paid without interest. He may do so if, before the end of the relevant period or a further period that the Commissioner may allow, a reasonable deposit is paid on account of the duty payable and a written application is made to the Commissioner for the extension of time.
One of the thirty amendments being made to the Estate Duty Act by the Tax Administration Act amends the rate of interest from a fixed amount of 6% to the ‘prescribed rate’, which is the rate of interest fixed by the Minister of Finance from time to time for amounts owing by taxpayers. The effective date of this change is yet to be fixed.
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.