Mineral and Petroleum Resources Royalty (Administration) Act, 2008 (Act No. 29 of 2008)Part V : Refunds, penalty and interest14. Penalty for underpayment as a result of underestimation of royalty payable |
[Section 14 heading substituted by section 42(1)(a) of the Tax Administration Laws Amendment Act, 2016 (Act No. 16 of 2016)]
| (1) | If in respect of a year of assessment the royalty payable exceeds the amounts paid under section 5(1) and (2) and 5A and that excess is greater than 20 per cent of the royalty payable, the Commissioner must impose a penalty, which is regarded as a percentage based penalty imposed under Chapter 15 of the Tax Administration Act, that may not exceed 20 per cent of that excess. |
[Subsection (1) amended by section 42(1)(b) of the Tax Administration Laws Amendment Act, 2016 (Act No. 16 of 2016)]
| (2) | A penalty imposed as mentioned in subsection (1) is payable within 30 days from the date on which it was imposed. |
| (3) | Where the Commissioner is satisfied that the estimates of the royalty payable and the amounts paid as mentioned in section 5 were seriously calculated with due regard to the factors having a bearing thereon and were not deliberately or negligently understated, or if the Commissioner is partly so satisfied, the Commissioner may remit the penalty mentioned in subsection (1) or a part thereof. |
[Subsection (3) inserted by section 32(b) of the Tax Administration Laws Amendment Act, 2015 (Act No. 23 of 2015)]
| (4) | If— |
| (a) | a registered person is regarded under section 5A(4) as having submitted an estimate of an amount of nil royalty payable in respect of a year of assessment due to a failure to submit an estimate before the end of a period of four months after the last day of that year of assessment; and |
| (b) | the Commissioner is satisfied that the failure was not due to an intent to evade or postpone the payment of the royalty, |
the Commissioner may remit the whole or any part of a penalty imposed under subsection (1).
[Subsection (4) inserted by section 42(1)(c) of the Tax Administration Laws Amendment Act, 2016 (Act No. 16 of 2016)]