Supreme Court Act, 1959
R 385
Income Tax Act, 1962 (Act No. 58 of 1962)SchedulesSeventh Schedule : Benefits or Advantages Derived by reason of Employment or the Holding of any Office16. Benefits granted to relatives of employees and others |
| (1) | For the purposes of this Schedule and of paragraph (i) of the definition of "gross income" in section 1 of this Act, an employee shall be deemed to have been granted a taxable benefit in respect of his employment with an employer if as a benefit or advantage of or by virtue of the employee's employment with the employer or as a reward for services rendered or to be rendered by the employee— |
| (a) | the employer has granted a benefit or advantage (whether directly or indirectly) to a relative of the employee; other than a benefit or advantage in respect of which paragraph 10(2)(d) applies; or |
[Paragraph 16(1)(a) of the Seventh Schedule substituted by section 62 of the Revenue Laws Amendment Act, 2005 (Act No. 31 of 2005)]
| (b) | anything is done by the employer under any agreement, transaction or arrangement so as to confer any benefit or advantage upon any person other than the employee (whether directly or indirectly), |
and such benefit or advantage, if it had been granted directly by the employer to the employee, would have constituted a taxable benefit contemplated in paragraph 2.
| (2) | The provisions of this Schedule shall apply in relation to the taxable benefit so deemed to have been granted as though the taxable benefit had in fact been granted to the employee. |
