Income Tax Act, 1962 (Act No. 58 of 1962)SchedulesSeventh Schedule : Benefits or Advantages Derived by reason of Employment or the Holding of any Office12A. Contribution to a benefit fund |
| (1) | The cash equivalent of the value of the taxable benefit contemplated in paragraph 2(i) is the amount of any contribution or payment made by the employer in respect of a year of assessment, directly or indirectly, to any medical scheme registered under the Medical Schemes Act or to any fund which is registered under any similar provision contained in the laws of any other country where the medical scheme is registered, for the benefit of any employee or dependants, as defined in that Act, of that employee. |
[Paragraph 12A(1) of the Seventh Schedule substituted by section 122 of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]
| (2) | Where any contribution or payment made by an employer contemplated in subparagraph (1) is made in such a manner that an appropriate portion thereof cannot be attributed to the relevant employee or his or her dependants, the amount of that contribution or payment in relation to that employee and his or her dependants is deemed, for purposes of subparagraph (1), to be an amount equal to the total contribution or payment by the employer to the fund during the relevant period for the benefit of all employees and their dependants divided by the number of employees in respect of whom the contribution or payment is made. |
(Paragraph 12A(2) of the Seventh Schedule substituted by section 59(1)(b) of Act No. 31 of 2005 - effective 1 March 2006]
| (3) | If the apportionment of the contribution or payment amongst all employees in accordance with subparagraph (2) does not reasonably represent a fair apportionment of that contribution or payment amongst the employees, the Commissioner may, on application by the taxpayer, decide that the apportionment be made in such other manner as is fair and reasonable. |
[Paragraph 12A(3) of the Seventh Schedule substituted by section 100 of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015)]
| (4) | [Paragraph 12A(4) of the Seventh Schedule deleted by section 271, read with paragraph 103 of Schedule 1, of the Tax Administration Act, 2011 (Act No. 28 of 2011)]. |
| (5) | No value shall be placed in terms of this paragraph on the taxable benefit derived from an employer by— |
| (a) | a person who by reason of superannuation, ill-health or other infirmity retired from the employ of such employer; or |
| (b) | the dependants of a person after such person's death, if such person was in the employ of such employer on the date of death; or |
| (c) | the dependants of a person after such person's death, if such person retired from the employ of such employer by reason of superannuation, ill-health or other infirmity; |
| (d) | [Paragraph 12A(5)(d) of the Seventh Schedule deleted by the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011)]. |
[Paragraph 12A inserted by section 56(1) of the Taxation Laws Amendment Act, 1998 (Act No. 30 of 1998)]