(1)
| (i) | every employer who employs or is deemed to employ employees within its region, and each person carrying on or deemed to be carrying on an enterprise within its region as referred to in paragraph (b) of the definition of "regional services levy", a regional services levy; |
| (b) | The Minister of Finance may from time to time, after consultation with the Council for the Co-ordination of Local Government Affairs established by section 2 of the Promotion of Local Government Affairs Act, 1983 (Act 91 of 1983), and by notice in the Gazette, determine the manner in which the regional services levy and the regional establishment levy shall be calculated and paid. |
| (1A) | The Minister of Finance may in any notice contemplated in subsection (1) (b)— |
| (a) | determine circumstances in which an employee shall be deemed to be employed within a region; |
| (b) | determine circumstances in which a person shall be deemed to be carrying on an enterprise within a region; |
| (c) | determine how an amount upon which the regional establishment levy is payable shall be calculated; |
| (d) | exempt any employer or person from the regional services levy or the regional establishment levy in relation to any enterprise; |
| (dA) | authorise the Commissioner for Inland Revenue— |
| (i) | to take such steps as the Commissioner may deem necessary to ensure that any levy payable under this Act is paid; |
| (ii) | to conduct audits of the affairs of any person who is or may be liable for the payment of any such levy; |
| (iii) | to require any person to produce for examination any books, records or accounts or any other document which in the opinion of the said Commissioner are or may be necessary to determine the liability of such person or any other person for the payment of any such levy; |
| (iv) | to determine or estimate the liability of any person for any such levy and to direct a council to make an assessment of such levy; and |
| (v) | to furnish a council with a ruling or directive on the interpretation of any provision of this Act or any such notice relating to the determination of the liability of any person for the payment of any such levy, which ruling or directive the council shall be obliged to apply; |
| (dB) | authorise a council to administer, subject to any ruling or directive furnished by the said Commissioner under the provisions of paragraph (dA) (v), any provision of this Act or of any such notice in so far as it relates to the determination of the liability of any person for or the payment or recovery of any such levy; |
| (dC) | authorise a council, upon written application by an employer or person and subject to such conditions as the council may determine, to permit that employer or person to pay the total amount of the regional services levy and regional establishment levy for which he is liable within a period of 20 days after the end of every period of a year or such shorter period as the council may determine; |
| (dD) | provide for an appeal against any decision of a council or the said Commissioner to the special court referred to in section 83 of the Income Tax Act, 1962 (Act 58 of 1962), and for an appeal against any decision of the said court; |
| (e) | make such other provision as he deems necessary to enable a council to impose and claim any such levy. |
| (2) | Every council shall open and maintain an account in its name and shall pay into it— |
| (a) | all income, donations, loans, appropriations and money received by the council from any source; |
| (b) | fines paid in respect of any contravention of the provisions of this Act in the area of jurisdiction of the council; |
| (c) | interest received on the investment of money referred to in paragraphs (a) and (b). |
| (3) | No money shall be withdrawn from the account referred to in subsection (2) save in accordance with the provisions of this Act. |
| (4) | A council shall before the end of its financial year submit a copy of its budget for the next ensuing financial year to the Minister of Finance, and obtain his approval thereof. |
| (5) | A council shall pay one twentieth per cent of the total proceeds in a specific financial year of the levies referred to in subsection (1) to the training fund established by section 7 of the Local Government Training Act, 1985 (Act 41 of 1985). |
| (6) | Subject to the provisions of subsection (5), the council shall, by resolution, appropriate the funds referred to in subsection (2) within or outside its region or in accordance with an agreement in terms of section 4 (3), for— |
| (a) | the payment or part payment of the costs incurred in the execution or performance of any power or function entrusted to a council in terms of section 3 (1) (b) and (c); |
| (b) | the payment or part payment of the costs incurred in the region by a local body in the execution or performance of any of the powers or functions of such local body: Provided that a council shall not make any payments in respect of a regional service in respect of which exemption has been granted in terms of section 5; |
| (c) | the payment or part payment of the costs resulting from the collection of the levies referred to in subsection (1) and the administration of this Act; |
| (d) | the payment or part payment of the costs of the establishment, improvement and maintenance of an infrastructure for and the running of transport services for commuters between their places of residence within or outside the region or outside the Republic and their places of employment in the region; |
| (e) | any other purpose approved by the Minister of Finance after consultation with the Administrator: |
Provided that in determining the priorities in connection with the appropriation of funds, the council shall give preference to the establishment, improvement and maintenance of infrastructural services and infrastructural facilities in areas where the greatest needs therefor exist.
| (7) | A levy referred to in subsection (1) shall not be recovered by any employer or person by adding it as a separate item to his prices or tariffs or the cost of his services or by deducting it from the wages or salaries paid by him. |
| (8) | Any levy referred to in subsection (1) may be deducted as an operating expense for the purposes of income tax by any employer or person. |
| (9) | Any person who fails to pay any levy referred to in subsection (1) (a) or who contravenes a provision of subsection (7) shall be guilty of an offence and on conviction be liable to a fine not exceeding R5 000 or imprisonment for a period not exceeding 12 months or to both such fine and such imprisonment. |
| (10) | If any person who is liable for the payment of a levy under subsection (1) fails to pay such levy in full within the period for payment prescribed in terms of this Act, interest shall, unless the relevant council, having regard to the circumstances of the case, otherwise directs, become payable by that person on the balance of the levy outstanding at the same rate as the rate determined from time to time for the purposes of paragraph (b) of the definition of 'prescribed rate' in section 1 of the Income Tax Act, 1962 (Act 58 of 1962), reckoned from the end of the said period. |
| (11) | A levy, or interest payable in terms of subsection (10), shall be deemed to be a debt due to the council and may be recovered by the council by way of judicial process in a competent court. |
| (11A) | A council may, with the prior approval of the Minister of Finance, borrow or lend money for the purposes of or in connection with the exercise or performance of any power, duty or function conferred on or assigned to the council by or in terms of this Act. |
| (12) | Any employer or person contemplated in subsection (1) shall at the request of any government body to which he applies for any permit, license or other authorization, furnish the government body with his regional services council registration number given to him by a council, failing which such government body may refuse to grant such applicant the said permit, license or other authorization. |
| (13) | The Minister of Finance may, subject to such conditions as he may determine, delegate any or all of the powers conferred on him by this section to the Deputy Minister of Finance or an officer of his department with a rank not lower than that of deputy director. |
